Renting Your First Home? 5 Money Mistakes Young Tenants Should Avoid

Weeks after house hunting, chasing brokers, and juggling through different areas of the city, you finally find an apartment that suits all your needs and checks all the boxes. But finding the right apartment is not enough in metro cities, especially for youngsters who often ignore documentation and mandatory checks before moving in.

If you are also renting an apartment for the first time, here are the key things to watch out for and mistakes to avoid while renting a home.

Understanding Terms & Conditions

Make sure that you are aware of all the mandatory terms and conditions and the facilities available, including a parking space. Many property owners also ask for additional charges like maintenance. Make sure that you are aware of that.

Skipping Paperwork

Paperwork may seem like the most tedious part of any process, but it can prove crucial when you need to apply for a new LPG gas connection, take a vehicle loan, or deal with any legal matters in the city. Keeping the necessary documents in order can also help you avoid potential legal complications.

Documentation

Recording the property at the time of moving also helps reduce friction at the time of shifting from the apartment. "Renters who don't photograph the property's condition on day one often struggle to reclaim their security deposit, since disputes over pre-existing damage typically favour whoever has evidence," Sarika Shetty, Co-founder & CEO, RentenPe.

Late Rent Payments

A single missed or delayed payment can trigger legal action from a landlord and chip away at a renter's credit profile, making future loans, including a home mortgage, harder to secure, warned Sarika Shetty.

Treating Renting As Permanent

Too many individuals see renting as a permanent state, but a single eviction deadline can take a toll on your finances. "Building an emergency fund, actively improving your credit score, and setting a homeownership timeline, even a loose one, puts you years ahead of peers who simply pay rent and hope for the best," suggests Shetty.

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