MONEY renting

Be a Successful Renter With These 3 Moves

For Rent sign
Zachary Zavislak

Whether you're renting an apartment or single-family home, taking these three steps will help you avoid costly blunders.

Whether you’re fresh out of college, or downsizing out of a suburban home, you may think renting a place is fairly risk-free. As long as you find a suitable unit you can swing each month, you need not worry about much else, right? Isn’t that one of the big advantages of renting over buying?

You don’t get off that easy! These three steps will secure both your home and your wallet.

Related: Avoid These Rookie Landlord Mistakes

1. Budget for upfront costs

Everyone knows this one, right? Renters will likely need to hand over at least their first month of rent plus a month as a security deposit before moving in. But consider this: If you’re moving from one rental to another, you’ll probably have to put down the cash before getting the security deposit back from the place you’re leaving.

This timeline is standard practice among landlords but continues to trip up unprepared renters, says Niccole Schreck, consumer insights and marketing manager for Rent.com. Rather than having to hit up mom and dad, or — horrors — start charging everyday expenses to conserve cash, begin saving a few months in advance. In fact, you should always have a few months of rent saved in case your landlord does not renew your lease. That could happen if, say, owners decide to sell the place.

And don’t underestimate the costs of boxes, tape, bubble wrap and other packing supplies. A moving kit for a three-bedroom home from Staples can run $400. Even ten 24” x 24” x 18” boxes for a studio can run $40, and that doesn’t include tape, wrapping paper, garment boxes, and other incidentals. Costs add up quickly.

Hiring professional help? Make sure you’re ready to go when the movers arrive. “If you aren’t organized and haven’t quite finished packing, it’ll take more time, and they generally charge by the hour,” says Schreck.

2. Read the lease. Really.

After an exhaustive search, it may feel like you can breathe easily once you’re approved for the rental. Not so fast. “Many people will just sign the lease without actually reading it,” says Schreck. A recent survey from Rent.com found that 26% of renters had lost their whole security deposit at some point. One culprit: not knowing the terms of the lease. “You can’t play by the rules if you don’t know them,” she says. For example, your lease may specify no painting, or have rules about putting holes in walls. Ask your landlord to include in the lease or as an attachment anything he verbally tells you, such as holes are fine or your cat won’t be an issue. Also double-check that utilities included in your monthly rent match what your landlord said.

3. Get renters insurance now.

Many renters assume if catastrophe strikes, such as a fire or break-in, the landlord’s homeowners insurance policy will cover their belongings. Wishful thinking. Landlord policies cover the structure of the home, and perhaps owner-provided extras such as appliances, but will not reimburse losses for the personal belongings of the tenant, says Paul Bruemmer, a landlord insurance expert at Farmers Insurance. Yet 60% of renters do not have renters insurance, a Rent.com survey found.

A typical policy runs between $15 and $30 a month, according to the National Association of Insurance Commissioners. (Unusually expensive items such as fine jewelry and art may need additional coverage.) So for the cost of, say, a fine pair of jeans, you can ensure the rest of your beloved belongings will be covered in the event of bad luck.

TIME Smart Spending

Most People Say They Could Get Rid of Tons of Stuff and Still Be Happy

Deep in your heart of hearts, you probably know you could unload the majority of your possessions without getting too upset.

Could you get rid of most of your stuff and still be happy? The majority of consumers polled in a new study say they absolutely could. The study, titled “The New Consumer and the Sharing Economy” and conducted by Havas Worldwide, surveyed more than 10,000 people around the globe. The results offer some interesting takeaways about consumption—and overconsumption. Among them:

*Half of all consumers say they could live happily without most of the items they own.

*Two-thirds say they get rid of unneeded possessions once a year, if not more often.

*70% believe that overconsumption is putting the planet and society at risk.

The factoids mesh with plenty of previous research that indicates, for example, the average American home is cluttered with possessions (and our incessant yearning for stuff is stressful and unhealthy), and that the average American child receives some 70 new toys per year. Other research points out that happiness comes largely as a result of fun experiences and relationships with other people rather than the gathering or more and more “stuff.” Money has been correlated with happiness, though how we spend it has a lot to do with whether wealth helps make one content or miserable.

It probably isn’t necessary for researchers to delve into reams of data in order to deliver many of these official “revelations.” Down deep, most of us generally know that we don’t really need much of what we own, and that getting rid of some, if not most, of our clutter certainly wouldn’t be the worst thing to happen. (“Hoarders” anyone?) On the one hand, the new study data demonstrates that most people are fully conscious of the idea that overconsumption is bad, and that one’s happiness isn’t dependent on “stuff.” On the other hand, while it would seem to be good that the majority of people sell, recycle, or otherwise get rid of unneeded possessions at least once annually, the fact that people are swimming in unneeded possessions in the first place is a pretty clear indication that the average person regularly acquires more than he needs.

The title of the new study features the term “Sharing Economy,” which applies to businesses such as Airbnb, Lyft, and SideCar, among many others. What they all have in common is that they’re based on the idea that, for many consumers, it makes more sense to “share” (usually for a fee, of course) rather than buy a car, ride, vacation rental, dress, gadget, or almost anything else under the sun. Another of the study’s factoids shows that most people are in favor of sharing:

*65% agreed with the line “Our society would be better off if people shared more and owned less.”

Because sharing economy operations are new and often viewed as disruptors—if not likely destroyers—of traditional businesses like taxi companies and hotels, they routinely find themselves in the government’s crosshairs and may very well be subjected to increased restrictions and regulations in the future. Nonetheless, it seems like the sharing economy’s future is bright, if for no other reason than consumers largely embrace the concept.

“For a number of years, we’ve tracked the shift away from wasteful spending and toward a more mindful approach to consumption, but what we’re seeing now is much more proactive and hands-on,” Andrew Benett, global CEO of Havas Worldwide, which conducted the new study, said in a press release. “They’re getting involved in the consumption cycle by contributing to the funding or even the creation of products they want and by reselling or renting out their unneeded possessions. They’re creating new formats for the exchange of goods. And every step of the way, they are practicing ‘less is more,’ and savoring their ‘less.’”

Consumers who own stuff like the sharing economy because it gives them a way to get some use—and ideally, some money—out of the possessions that otherwise might be rarely unused, gathering dust and taking up space. And consumers who choose to own less like the sharing economy model because it gives them a way to get their hands on more stuff without having to actually take the plunge and buy. They also don’t have to worry about finding space to store this stuff because, remember, it’s not their stuff. They get to give it back.

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