How do you choose the right house for renting?

Have all the answers around finding the right house for renting

Renting a house can be overwhelming, particularly when unsure of what factors to consider. Making an informed decision is essential with various housing options, from city apartments to suburban homes. This article will walk you through a step-by-step guide on choosing the right house for renting based on your needs, budget, location preferences, and more.

 

1. Evaluate your budget

The first and most critical step in choosing the right house to rent is determining how much you can afford. Rent is often one of the most significant expenses in a person’s monthly budget, and overspending can lead to financial stress.

 

A. Rule of thumb: the 30% rule

It’s commonly advised to spend no more than 30% of your monthly income on rent. This allows you to balance rent and other expenses, like utilities, groceries, transportation, and savings. For example, if you earn ₹50,000 per month, keep your rent below ₹15,000.

B. Factor in additional costs

In addition to rent, consider other expenses such as:

  • Security deposits: Usually, landlords require a deposit equivalent to two or three months’ rent.
  • Maintenance charges: Some properties include monthly fees, especially in gated communities or apartments.
  • Utilities: Electricity, water, gas, internet, and trash disposal may or may not be included in the rent. Ensure you account for these while setting your budget.

C. Income stability and future planning

Planning for long-term affordability becomes easier if you’re in a stable job or have a steady source of income. If you’re unsure about your financial situation in the future, it’s a good idea to opt for a slightly lower rent to provide some flexibility in case your circumstances change.

 

2. Location

The location of your rental home is another crucial aspect. It impacts your lifestyle, daily commute, social activities, and safety. Here’s what to keep in mind when evaluating a location:

 

A. Proximity to work or school

The closer your rental home is to your workplace or educational institution, the better it is for saving time and transportation costs. Long commutes can be frustrating and may lead to burnout. Consider how far you’re willing to travel daily and the transportation options available.

B. Access to public transportation

If you don’t own a vehicle, ensure the property is near public transport routes such as buses, trains, or metro stations. In major cities like Delhi, Mumbai, and Bangalore, proximity to transportation hubs can significantly affect your quality of life, making it easier to move around without relying on expensive taxis or long commutes.

C. Safety and security

Prioritise neighbourhoods with low crime rates and well-established security systems. Some properties may offer 24/7 security or gated communities, adding an extra layer of safety. Speak to current tenants or visit the area at different times of day to assess how secure you feel.

D. Neighborhood amenities

Ensure the area has essential services and facilities like:

  • Grocery stores
  • Hospitals or clinics
  • Pharmacies
  • Parks
  • Restaurants or cafes 

E. Future development

If you’re planning to stay in the rental home for a few years, look into the development plans for the area. New infrastructure, such as malls, schools, or transit hubs, can enhance the location’s value and convenience over time.

 

3. Size and type of the rental property

Next, consider the size of the property and the type of house that would suit your needs. Think about the number of people living in the house and the space required for your lifestyle.

 

A. House vs. apartment

  • Houses: They offer more space, privacy, and possibly a yard, making them ideal for families or those who prefer a quieter living environment. Houses typically have more bedrooms and storage space but also have more maintenance responsibilities.
  • Apartments: Usually more affordable and accessible to maintain, apartments often come with shared amenities like gyms, swimming pools, and security. They may be better suited for single individuals, couples, or small families who don’t require a lot of space.

B. Number of bedrooms

Think about how many rooms you need now and shortly. For example, a couple may need just one bedroom, but if you’re planning to start a family, opting for a two-bedroom apartment might save you the hassle of moving again soon.

C. Living space

Ensure that the living spaces—kitchen, living room, and bathroom—are spacious enough for comfort. Even if the property has enough bedrooms, cramped living spaces can make it feel smaller and less comfortable over time.

D. Balcony, yard, or garden

A balcony or small garden area can significantly benefit those who enjoy outdoor living. These spaces can also be essential if you have pets needing outdoor time.

 

4. Inspect the property condition

Before finalising your rental, a thorough inspection of the property is crucial. You don’t want to move into a house with significant maintenance issues or damages. Here’s what you should check during a property visit:

A. Structural integrity

Look for any signs of structural damage, such as cracks in the walls, damaged ceilings, or uneven flooring. These can indicate more significant problems that could become costly for you in the future, even as a tenant.

B. Plumbing and electrical systems

Ensure that all plumbing fixtures (toilets, showers, sinks) are working correctly, and check for any signs of leaks or water damage. Verify that all electrical outlets, lights, and appliances function correctly. These checks can save you from unexpected repair costs down the line.

C. Pest infestation

Ask the landlord about any history of pest problems and look for signs of pests during your visit, such as droppings, nests, or gnawed wires. Pests can quickly turn your dream rental into a nightmare.

D. Appliances and furnishings

If the property is furnished or has appliances like a refrigerator, washing machine, or stove, ensure they are in good working condition. Ask about warranties or who is responsible for repairs.

E. Security features

Check the locks on doors and windows, and verify if there are any additional security measures like a peephole, intercom system, or security cameras. These features can provide peace of mind when living in the house.

 

5. Understanding the lease agreement

A lease agreement is a legal contract between you and the landlord. Understanding the terms is essential to ensure you’re protected and aware of your rights and responsibilities.

A. Lease duration

Most leases are for 12 months, but some landlords offer shorter or longer terms. Consider your plans and whether you want a temporary rental or a long-term commitment.

B. Rent increase clauses

Check if the lease specifies any provisions for rent increases. Some landlords may increase rent yearly, while others have fixed rent for the duration of the lease. It’s essential to understand when and how much your rent may rise.

C. Maintenance and repairs

The lease should clarify who is responsible for maintenance and repairs. Typically, tenants are responsible for minor repairs, while landlords handle significant issues like plumbing or electrical repairs. Make sure this is spelt out in the contract to avoid disputes later.

D. Notice period

The agreement should specify the notice required if you plan to move out, usually 30 to 60 days. Similarly, it should state how much notice the landlord must give if they want you to vacate.

E. Security deposit

Understand the terms surrounding your security deposit—how much is required, how it’s held, and what conditions must be met for its return. Usually, landlords deduct for damages beyond normal wear and tear.

 

6. Landlord’s reputation and management

The quality of your rental experience often depends on the landlord or property manager. A good landlord can make your stay stress-free, while a bad one can create ongoing issues.

A. Responsiveness

Talk to current or previous tenants about their experiences with the landlord. How quickly does the landlord respond to repair requests? Are they easy to communicate with or avoid tenants once they move in?

B. Property management companies

If a professional management company manages the property, it’s generally easier to get quick responses for maintenance and repairs. However, some companies can be less personal and more rigid with lease enforcement, so ensure you’re comfortable with the level of service provided.

C. Online reviews

Check online for reviews of the landlord or property management company. Tenants often share their experiences on housing forums or social media platforms, which can give you a good idea of what to expect.

 

7. Legal and regulatory aspects

Ensure the property and lease agreement comply with local housing laws and regulations. This can protect you in case of disputes with the landlord or management.

A. Tenant rights

Familiarise yourself with your fundamental rights as a tenant in your region. This includes protection from unfair eviction, the right to live in a safe and habitable property, and regulations about rent increases.

B. Local laws on deposits and maintenance

Some cities have strict laws governing security deposits, maintenance timelines, and tenant privacy. These laws help ensure that your landlord meets their legal obligations.

C. Rental agreements registration

In some regions, especially in India, rental agreements must be registered with the local authority if the lease exceeds a specific duration, usually 11 months. Registered agreements provide legal standing and are easier to enforce in a dispute.

 

8. Lifestyle considerations

Beyond practical concerns, you should also consider how well the property aligns with your lifestyle.

A. Pet policy

If you have pets or plan to get one, ensure the landlord allows pets. Some places may restrict the size, type, or number of pets, while others may require a pet deposit.

B. Noise levels

Living near busy streets, airports, or train stations may result in a noisy environment. Visit the property at different times to assess noise levels and ensure it won’t disturb your daily life.

C. Social and cultural environment

Consider the culture and community of the neighbourhood. If you prefer a quiet, family-oriented neighbourhood, renting a student-heavy area with parties and nightlife may be better. Conversely, if you’re a social individual who enjoys lively surroundings, renting in a quiet suburb may feel isolating.

D. Recreational activities

If you’re an active person who enjoys jogging, cycling, or outdoor activities, check if the neighbourhood has parks or recreational facilities nearby. Proximity to entertainment options like movie theatres, restaurants, and shopping centres may also be necessary, depending on your lifestyle.

 

9. Negotiating rent and lease terms

Once you’ve found a property that fits your needs, don’t hesitate to negotiate. Some landlords may be willing to lower the rent or offer perks like a free parking space or early move-in.

Negotiating favorable rental terms requires strategic planning and informed discussions. Here are specific tactics to enhance your negotiation success:

1. Leverage lease duration

Landlords often prefer long-term tenants to minimize turnover costs, which can range from 4-8% of annual rental income.

 

  • Propose an extended lease: Offering a longer lease term can incentivize landlords to reduce monthly rent. For instance, committing to a two-year lease might lead to a 5-15% rent reduction, potentially saving up to ₹3,600 annually on a ₹20,000 monthly rent.

  • Highlight stability: Emphasize your reliable rental history and steady income to assure the landlord of your commitment.

2. Conduct market research

Understanding local rental market trends empowers you to negotiate from a position of strength.

  • Compare local rates: Research similar properties in your area to determine average rents. If your current or proposed rent exceeds local averages, present this data to justify a reduction.

  • Assess vacancy rates: High vacancy rates in your area can provide leverage, as landlords may be more willing to negotiate to fill units.

3. Timing Your Negotiation

The timing of your negotiation can significantly impact its success.

  • Lease Renewal Period: Initiate discussions as your lease term approaches renewal; landlords may prefer retaining a good tenant over seeking new ones.

  • Market Downturns: During periods of high vacancy or increased apartment availability, landlords might be more open to concessions.

4. Prepare your proposal

  • Document your value: Present evidence of your timely payments and property upkeep to strengthen your position.

  • Be ready to compromise: Identify aspects where flexibility is possible, such as agreeing to minor maintenance responsibilities in exchange for reduced rent.

 

A. Timing

Landlords may be more open to negotiation if you’re renting during the off-season or in a competitive market. Timing your rental during periods of lower demand—such as during the winter months—can give you more leverage.

B. Length of lease

Offering to sign a longer lease (e.g., 18 or 24 months) can secure a lower rent, as landlords appreciate the stability of longer-term tenants. However, be sure you’re comfortable with a longer commitment before negotiating this.

C. Package deals

If you negotiate, landlords may be willing to include utilities, parking, or maintenance services in the rent. This can help you save money in the long run and reduce the number of bills you must manage separately.

 

Housing.com POV

Choosing the right house for rent is a significant decision that involves balancing your financial capacity, personal needs, and plans. You can find a rental home that meets your immediate needs and supports your long-term goals by carefully evaluating your budget, location, property size, and landlord reputation. Don’t rush the process—take the time to visit multiple properties, understand the lease terms, and ensure you’re making the best choice for your circumstances.

 

FAQs

What should I prioritise when choosing between two rental properties?

Prioritise the location, safety, and proximity to essential services, ensuring it fits your lifestyle and daily commute needs.

How can I determine if a rental home is priced fairly?

Research comparable rental rates in the area and check amenities to ensure the price matches the market.

Is it possible to negotiate rent with a landlord?

Depending on demand, lease duration, or the property's vacancy, landlords may consider rent negotiations.

What are expected hidden costs renters should be aware of?

Look out for maintenance fees, utility bills, parking charges, and repair responsibilities that might not be included in the rent.

How can I assess the neighbourhood's suitability before moving in?

Visit the area at different times of day, speak with current residents, and check local crime rates and amenities.

Should I avoid renting an older property?

Older properties are fine if well-maintained but check for structural issues and outdated utilities during inspection.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com
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