Renting a home: the tenant's side, done right

01Find the right rental

Start with a real budget. A common rule of thumb is rent around a third of take-home pay, but the number that matters is your all-in cost, rent plus utilities, parking, renters insurance and the commute. Search the listing and rental-search sites, and in tight markets a leasing agent or the local grapevine finds places before they post.

At a viewing, look past the finishes: water pressure, phone signal, natural light, noise, how management handles repairs, and what the neighbours are like. Ask what's included and what the true monthly cost will be.

02Read the lease before you sign

The lease is the whole relationship in writing. Read every line before signing:

• Term and rent, length, amount, due date, late fees, and how (and how much) rent can rise at renewal.
• Who pays what, utilities, heat, water, trash, parking.
• Maintenance, what the landlord fixes, how you report it, and response times.
• Rules, pets, guests, subletting, alterations.

If you're renting with others, understand whether the lease is joint, meaning everyone is on the hook for the whole rent, and whether a co-signer is required.

03The security deposit

The security deposit is your money, held against damage beyond normal wear. States regulate it tightly, caps on the amount, where it's held, and deadlines to return it, and some, like Massachusetts, are especially strict about what a landlord can collect and hold. Protect yourself: document the home's condition with dated photos at move-in and move-out, get every payment in writing, and know your state's rules for getting it back.

04Know your rights, and insure your stuff

Tenants have real protections, though they vary by state: a right to a habitable home, to reasonable notice before entry, to privacy, and to be free from discrimination under fair-housing law. Learn your local rules, and keep communication with your landlord in writing.

Buy renters insurance, it's inexpensive, and it covers your belongings, which the landlord's policy does not, plus liability. If you ever need to break the lease, check it for an early-termination clause; you may owe rent until the unit is re-rented, so give notice and help find a replacement.

05Rent-to-own, and moving on

Rent-to-own can be a bridge to buying, part of your rent may go toward a future purchase, but the contracts are complex and the risk sits mostly with the renter, so have an attorney read one before you sign. And when it's time to move, plan it early: our Moving & relocation guide covers the logistics.