The scorching 2022 housing scene has spilled over into the rental market, and learning how to rent an apartment now demands perseverance, research and a strong application. Your credit report and work history will play a big role, too.
Finding a rental that provides the features you want at a price you can manage has become tougher, particularly in many of the country’s most sought-after urban centers.
While familiar high-cost cities such as New York, San Francisco, Chicago and Los Angeles remain expensive, other markets have joined the ranks of steep rents: the Tampa Bay area and Jacksonville in Florida, Charlotte and Raleigh in North Carolina and San Antonio, Texas. Home values are climbing in these places, and monthly rents are following suit.
People — and Renters — Are on the Move
More than a decade after the Great Recession and two years into a pandemic that altered daily life, relocation rates are remarkably high. Some people are downsizing, others are moving out on their own. Some relocate for a new job, while many others take advantage of remote work flexibility to live where they choose. Monthly rent payments are changing along with them — mostly upward.
Homes are selling quickly and for top dollar. That surge is mirrored in the rental market as many younger households find buying a house out of reach.
Competition for rentals in desirable urban neighborhoods is fiercer than ever, and prospective tenants are paying through higher rents and often larger security deposits. Renter demand pushes up the price per square foot, and applicants frequently must act as soon as units are listed in nearly every building with vacancies.
Renters are also being forced to market themselves to landlords and property managers.
9 Tips on How to Rent an Apartment in a Hot Market
Below are nine strategies to help you rent an apartment by assembling key documentation and learning about the unit and your finances before applying. Begin by compiling personal references and contact information for previous landlords.
1. Know What You Can Afford for Monthly Rent
While you might be able to negotiate on certain amenities, you are unlikely to bargain down the monthly rent. (Before the pandemic, it was more common to negotiate a rental price, but that was before demand surged.) Landlords and management companies often know they can get their asking price from someone else if you walk away.
So it’s critical to determine what you can realistically spend on rent. Numerous online calculators and tools can help you estimate affordable monthly rent and utilities. Factor in any additional costs tied to the move and potential savings (transportation often figures prominently). Enter the search with a clear rent budget so you can act confidently.
2. Have Money on Hand for Security Deposit and More
Do not rely solely on your paycheck to cover rent, the security deposit and moving expenses. Keep enough liquid funds to cover first month’s rent and a security deposit (often one to two months), plus a cushion. You don’t want delays arguing with a property manager about when payment will arrive.
Consider moving costs, new furnishings and other one-time expenses, and try to avoid overextending credit. In simple terms, having extra cash available makes you a more attractive applicant to landlords.
3. Clean Up Your Credit
Landlords will review your credit history and may look back a decade. They’re assessing missed or late payments, credit card balances and other financial obligations. They focus more on your payment consistency than on raw balances, but a low credit score can count against you.
The three major credit bureaus — Experian, Equifax and TransUnion — can help correct inaccuracies on your reports and may remove outdated delinquent entries after verification. Cleaning up your credit record can make you more appealing when a landlord or rental office evaluates applicants.
4. Have Your References Ready
In today’s rental climate, you’re being vetted for tenancy. You’ll need references that demonstrate you’re a reliable occupant. Those references can include prior landlords or supervisors if this is your first rental. If you have a solid rental history, secure endorsements from previous landlords covering that time. Management companies commonly conduct both background and credit checks.
It’s also wise to learn about the landlord. If you find a building you like, consider spending time nearby and asking current tenants about the landlord’s responsiveness and fairness.
5. Survey the Neighborhood
You may know what features you want in a unit, but do you know where you want that unit to be? Alongside your apartment hunt, explore the surrounding neighborhoods.
In many cities, any centrally located area may be practical for commuting, thanks to public transit. Still, shop around for a neighborhood that matches the lifestyle and conveniences you want. Ask yourself:
- Are there grocery stores nearby?
- Do you prefer a quiet block or a lively one?
- Do you want parks or outdoor recreational spots?
- Are you a walker or a cyclist?
- Do you need one or two parking spaces? Parking may be an added fee; ask the leasing office for details.
Prepare a shortlist of neighborhoods to compare costs, unit sizes and the amenities each neighborhood offers.
6. Do Research Online
To spot desirable units and respond to sudden vacancies, use online listing platforms that refresh frequently. Many of the criteria you care about can be entered as filters so you can quickly narrow the search.
Websites known for home sales, like Trulia and Zillow, also list available rentals. Apartments.com is tailored for apartment hunters. Craigslist remains an option, though it lacks robust oversight, so treat listings there with caution.
7. Submitting an Advance Application
The best units move quickly, and applicants often race to submit their paperwork first. One helpful tactic is to file an application in advance with a property manager or rental firm you’re working with.
In this case you’re not applying for a specific unit; you’re allowing the manager to run your credit and vet you ahead of time. When the ideal apartment shows up, you’ll be prequalified and more likely to be chosen by the landlord or agency.
8. Renting When You Have a Pet
Bringing a pet will narrow your options, as some buildings restrict animals. Be prepared for your pet to undergo a kind of background or records check, too.
Make sure your pet’s vaccinations and treatments are up to date per the building’s requirements. Your veterinarian can tell you which vaccines and documentation landlords typically request when reviewing pet records.
The rental agreement will specify pet-related terms.
9. Be Flexible
Your ideal unit may already be taken, so be prepared to compromise on secondary preferences. Prioritize the amenities and features you can’t live without, but recognize you may need to forgo some wants if they’re lower on the list.
If an in-unit washer and dryer are nonnegotiable for you, pass on buildings that lack them. But if a unit sits in a prime spot and the building has clean, secure communal laundry, signing the lease could make sense.
The same applies to neighborhoods. Your top picks might be expensive; consider a third or fourth neighborhood that isn’t perfect but may afford you more living space for the same price. You can always walk, bike or take transit to the areas you miss.
The Final Assessment
Doing this preparation in advance makes it far easier to secure a new rental than scrambling to gather documents after finding a listing. Keep in mind there are many others chasing apartments near work, transit and favorite cafes. Be ready, and you’ll have a better chance of landing the place you want.
Jamie Rooker is an experienced journalist who has covered personal finance topics for several years. She contributes to Savinly.
