Renting an apartment or home? Here is what real estate experts say you need to know

It can be difficult to find an apartment or house to rent.

Rental prices have rebounded well above their lows and are now a major inflation pain point for American consumers. Low housing inventories are one of the factors that contributed to the rising rents. Less inventory drives up home prices and leads to more potential buyers opting to rent, which in turn drives up rental prices.

New York City is an example. The data provided by StreetEasy shows a rise in the housing market. Rents in Manhattan have increased by 36% over the last year, with rents in Brooklyn and Queens increasing by 15%. Rent is surging not only in metropolitan areas. According to a recent report from Core Logic, demand for single-family rental homes is soaring as rents gained a record 12.6% year over year in January.

The current real estate market dynamics make it important to know your budget and have all your documents ready as the first step in a housing search.

Knowing what you can afford is important when it comes to deciding how much to pay for a place. Sophia Bera, a certified financial planner and founder of Austin, Texas-based Gen Y Planning, says people need to tally up their current expenses when creating a budget.

She suggests people use a rent calculator to find a rental that's within their budget. According to Bera, a good rule of thumb is to spend 30% of your monthly take- home income on rent. Paying more than 40% can affect how much you can save.

The application fee is charged by many landlords or property managers. The fee can be as low as $20 in New York City, but can be as high as $50 in other places.

States, cities and apartment complexes have different requirements. Most rental applications require the same information for each application so that they can verify your identity and ability to pay rent. Information can include your personal contact information, Social Security number, current and previous addresses, employer information, and proof of income and credit reports. Getting these documents ready can speed up the approval process.

Olympian Lauryn Williams says sports and finance have a lot in common. Brandon Copeland saves most of his pay to rebuild his finances. Here is how he does it.

The application fee should not be a deal breaker because the application process often includes a background check and credit report on a potential tenant, if there are multiple people being put on a lease. If you can offer current credit reports instead of having a credit check done again, you can reduce the application fees.

It's always worth trying to negotiate with a landlord so you can pull previous reports to avoid it, according to Jeff Andrews, a senior market analyst at Zumper. He said that it's probably not worth it to get into a huge battle over because you have a bigger recurring expense to negotiate. Rent.

If you are working with a real estate broker, there is a bigger expense to factor into your rental budget. You will want to make sure you have enough saved to cover the fee when you start a rental search.

A broker's fee is similar to a finder's fee, which is 10% to 15% of the annual lease. It gets harder in bigger cities to find an apartment without a broker. Most online housing platforms allow you to search for apartments without paying a broker fee.

If you want to avoid a fee, you should use personal networks, social media and online listing boards, since the current real estate market gives less leverage to the renter. In some smaller cities and towns, you can do your own CarRentals search, driving around neighborhoods you are targeting and looking for rental signs.

If there is a broker fee involved, make sure to ask any real estate professional you end up working with, because unlike a security deposit, you won't get this back.

A security deposit is usually equivalent to a month's rent and the first month's rent for new tenants. Tenants should get their security deposit back after a lease ends if they don't have to fix the damage. There are a few things that can be done to increase the chances that a security deposit is returned in full.

Make sure you know what the lease says about security deposits. Push the landlord to put details in the lease if it isn't detailed. If a tenant has a pet, make sure you are aware of the damages that you could be on the hook for.

Property managers or maintenance personnel are often hired by landlords to service their apartments. They don't want tenants to make their own repairs. If something breaks, it's best to alert your landlord as soon as possible.

If you want to create a paper trail, you should email the landlord or property manager the pictures you took of the apartment.

It is important to address any concerns with the landlord because each lease will be different. The landlord will probably want the tenant to convert any potential damages if they own pets.

Since many rental applications include a credit check, if you are concerned about your credit score negatively impacting your rental chances and want to improve it, there are a few things you can do in advance. Paying off debt is the first thing you can do to improve your score.

If you have a low interest or zero interest credit card, pay it off.

She recommends calling your credit card company to see if they will increase your credit limit. If you have a limit of $5,000, you can only use $2,500 a month. 50% is the utilization rate. If you increase your limit to $10,000, that $2,500 becomes a 25% utilization rate. If you've recently started earning more money, banks will likely give you a higher limit.

Bera says that if you are on the phone with a credit card company, ask if they will lower the interest rate on any outstanding debt.

Landlords will often want a guarantor to sign a lease with a first time tenant. A guarantor is a person who guarantees a renter's payment. If you have enough savings and a good credit score, you can convince the landlord to waive a guarantor. Renting from a smaller company or individual landlord may work in your favor.

If you have been approved to move into a new building or home, the landlord or property manager will ask you to sign a lease. A legally binding document is the one you are signing. Bera said don't be afraid of the legalise.

Anything that looks incomplete, shoddy, or unprofessional is a red flag. The lease needs to be detailed and comprehensive. He recommends that you review every page of the lease. He said that things that are disagreeable will come out through that process.

You should read it at least twice before you sign anything. Penalties for late rent are common. If you want to break the lease early, there could be clauses in the lease that prevent you from sub letting the apartment. The number of guests tenants can have over and the duration of their stay will be included in some landlords' agreements. It is possible to have a friend read the lease to make sure you didn't miss anything. It's even better if you have a friend or family member who is a lawyer.

If you have covered all the direct fees and expenses, you should consider the cost of moving if you are approved for a rental. If you are moving within a city, it will be less expensive to move over state lines. People should decide how much service they need. It will be cheaper to do the moving yourself, but it will be more physically demanding and time consuming.

If you plan on taking the do-it-yourself method, compare rates between different truck rental providers. Consider what supplies you will need, such as boxes, tape, moving blankets, pushcarts.

You can use a cost calculator on Moving.com to estimate how much it will cost to move. Fuel costs, the size of your move, moving supplies, and moving date are just some of the costs to consider. Mid-week moves are cheaper than weekend moves. During the peak moving season of April - September, moves can be more expensive.

The cost of moving depends on the weight of your belongings. For long-distance moves, it is around 0.70 per pound of goods for every 1,000 miles, according to Joshua Green.

Don't forget to budget around 15% to 20% when hiring a moving company.

According to Bera, renters insurance is a must-have. Some policies include additional protection for pets or expensive electronics. Insurance rates on online platforms start at $5 per month. Insurance customers can often get better rates when they consolidate policies with a provider, so if you already have car insurance, for example, it is worth asking your current insurance company what renters insurance options they offer.

If you have anything valuable in the house that could be lost or damaged in a fire, you should get insurance.

Some cities require renters to purchase insurance, so be sure to check with your local government.

It can be difficult to find a place to rent if it is your first time. Knowing how much you can spend from your monthly income, budgeting for rental search and moving expenses, and having your essential documents ready in advance can prepare you to act fast when you find your new place.