Renting a house offers a long list of benefits, such as no property taxes to pay, no maintenance expenses to worry about, and the freedom to move to another place when you feel like it. However, renting is not always a walk in the park. Although it comes with various perks, many tenants lose money in ways they can avoid. Yep, we’re talking about the regretful moments when you start wishing you knew what to do sooner. So, to help you get the best out of the situation if it happens again, we’ve provided the four main ways tenants lose money below to educate you.
1. Skipping the Fine Print on the Lease
Leases are legal documents that contain clauses that could cost you big time. An excellent example is the “automatic renewal” clause that will keep you locked in for another term unless you give notice within a specific period. The failure to read this clause might cause you to end up paying for months you no longer need the coverage. As such, avoid skipping the fine print on your lease.
2. Ignoring the Apartment’s Flaws and the Failure to Document Them
Before you move and settle in your new apartment, conduct a thorough walkthrough of the unit and create a comprehensive list of any pre-existing damages. Include everything, including chipped paint, leaky faucets, and cracked tiles. Also, take photos and share them with your landlord.
Doing this technique is crucial because your landlord will do another walkthrough at the end of your lease term. If they find various damages you failed to report when you moved in, these will be charged against you, even if you didn’t cause those damages. You could lose your entire security deposit and incur additional charges when this happens.
3. Underestimating the Moving Out Cost
Moving is exhausting. As such, you might be tempted to rush through the process of moving out of your old unit to get it over with. Unfortunately, this practice is something that you should avoid to commit. This is because moving out can be a minefield of hidden costs. There are charges such as the “cleaning fee” if you don’t leave the apartment in a specific condition and penalties for failing to provide sufficient notice before vacating.
Additionally, do not underestimate the cost of moving itself. If you are not careful, you might be forced to incur larger expenses when hiring professional movers or simply renting a truck.
4. Breaking a Lease Early
Moving out of your current apartment is sometimes inevitable. This can happen due to various reasons like getting a new job in a different city or you grew tired of dealing with noisy neighbors. Although these are valid reasons to move out, you should be aware of the financial implications before you make the decision. It is best to look at that lease agreement and check for clauses that specify the penalties for breaking it early. And because these penalties can range from losing your security deposit to being required to pay rent for the remaining months of your lease, you must be very cautious in breaking the lease early.
Even if your lease has a more “lenient” early termination clause, you still need to handle the cost. You might end up paying a fee equivalent to one or two months’ rent. You might also be required to cover the cost of advertising the property until a new tenant is found. Finally, some landlords require a 30 or 60-day notice, during which you’re responsible for the rent even if you’ve already moved out.
Breaking a lease early can also have long-term financial consequences. Broken leases can show up on your rental history. This could make searching for a new place to rent more complicated and expensive. Many landlords check rental history stringently before allowing someone to rent their properties.
Conclusion
So there, you have four pitfalls that can cause you to lose money as a tenant. But because knowledge is power, understanding these traps can help you learn the best ways to avoid them and save yourself some hard-earned cash. Read that lease carefully, document any issues upfront, and be smart about your move-out strategy. Also, hire a reliable Baton Rouge realtor like the Nichole Spellman Group to handle your home rental needs.
