Gen Z's Ultimate Guide to Renting Your First Apartment

Welcome to adulthood, where finding your first apartment is both an exhilarating and daunting experience. For Gen Z—the generation known for being tech-savvy, socially conscious, and uniquely individualistic—renting an apartment involves more than just picking a place to live. It's about finding a space that reflects your identity, values, and lifestyle. Along with the excitement of finding your first apartment comes a series of important decisions to navigate. This guide will provide you with practical tips and insights to help inform your decisions and ensure you feel confident that your first apartment is not just a place to live, but a home that truly feels yours.

Research

Define your Budget

Start with your budget, as it will shape your entire search for housing. Experts recommend that rent should ideally account for no more than 25%-30% of your monthly income. Exceeding this threshold can strain your finances, leaving little for essentials or savings. Financial advisor James Guarino suggests the 50/30/20 budgeting model: allocate 50% of your income to needs, with up to 30% for rent, while dividing the remaining income into 30% for wants and 20% for savings. In high-cost cities like Boston, New York, San Francisco, and Los Angeles, where rents have soared 30.4% nationwide from 2019 to 2023—outpacing wage growth at just 20.2%—the traditional 50/30/20 budgeting model may fall short, often requiring significant adjustments to your priorities. While some may opt to pay more for rent in hopes of future salary increases and career growth, weighing these long-term benefits against the possibility of relocating to a more affordable area is essential. Additionally, consider how living in a pricier location might save money in other areas, like reduced commuting costs or eliminating the need for a gym membership, which could justify a higher rent payment. 

Know your non-negotiables

Now it’s time to narrow your search further and differentiate between must-haves versus nice-to-haves — ensuring you find a space that meets your essential needs while aligning with your lifestyle preferences. Beginning with non-negotiables might include a pet-friendly policy or in-unit laundry for convenience. Consider the importance of good natural light; it can greatly affect your mood and energy levels, especially if you work from home. Other priorities could include a gym in the building, outdoor space, or specific kitchen appliances like gas stoves or stainless steel appliances. Identifying your essentials helps you make informed choices, ensuring your new home is functional and comfortable.

Choose a Location

When selecting a neighborhood, it's essential to consider both practical and lifestyle factors. Proximity to key locations, like your workplace and public transportation, can significantly reduce commute times, save money, and improve your work-life balance. If you drive, ensure ample parking options are available to avoid the hassle of searching for a spot. In addition to convenience, think about nearby amenities that complement your lifestyle, such as grocery stores, parks, and fitness centers. Neighborhoods with a range of restaurants and entertainment options can also enhance your social life. Whether you prefer the energy of city living or the tranquility of a suburban area, these factors can help you find a location that suits your personal and professional needs.

Financial Preparedness

Proof of employment or financial stability:

Landlords typically require proof of employment or financial stability to ensure you'll be able to pay rent consistently. This can include recent pay stubs, a letter from your employer, or bank statements showing adequate savings. If your income doesn’t meet the landlord’s requirements, a guarantor—usually a family member or close friend or Rhino’s guarantor program—can help you qualify for your lease, offering additional assurance by agreeing to cover the rent if you're unable to pay.

Credit Score:

A strong credit score can improve your chances of securing your ideal apartment and influence rental terms, including security deposits. As Business Insider reports, many apartments in 2024 require a score of at least 670, though this varies by landlord. If your score needs improvement, start by reviewing your credit report for errors, paying down debts, and ensuring timely bill payments. Services like Self Inc, a free rent reporting tool, can also help renters with lower scores build credit by reporting on-time rent payments.*** For more tips, check out our blog post on Credit Boosting 101: How Paying Rent Can Build Your Credit.

Security Deposit:

A security deposit is typically required upfront to protect the landlord against damage or unpaid rent, usually equivalent to one or two months' rent. If the cost is too high, security deposit insurance can be a more affordable option. This insurance provides the landlord with the same protection while lowering your initial payment. At Rhino, we offer security deposit insurance that can save renters up to 90% on upfront costs, with policies starting as low as $7 per month. This allows you to focus on essential payments like rent, while helping to provide stability for property owners.*

Renters Insurance: 

Renters insurance is an essential way to protect your personal belongings and provide liability coverage in case of unexpected events like theft, fire, or water damage. Many landlords require renters insurance because it covers your belongings and provides liability protection— even if your property’s owner has other insurance. From as low as $5 per month**, Lemonade provides affordable, customizable coverage tailored to your needs. Sign up with Lemonade today to get started with a policy that fits both your lifestyle and budget. Lemonade makes it simple to personalize your coverage and file claims quickly, all through an easy-to-use app. 

Utilities: 

Don’t forget that rent isn’t your only monthly expense—utilities like electricity, water, gas, and internet should be factored into your budget. These costs can vary by location, usage, and lifestyle, so estimate them accordingly. Some rental agreements include utilities, so check with your landlord to confirm. If you're responsible for setting up utilities, contact local providers in advance to ensure services are active when you move in. Be ready to provide personal info like identification and your new address, and keep in mind that some providers may require a deposit, especially for first-time customers.

Moving Services:

Relocating can be daunting, but moving services can help ease the process. Whether you need help packing, loading, transporting, or unloading, moving services ensure a more efficient and stress-free move. Save 5% on your moving services with Bellhop to make your transition smoother and more affordable. Learn more about our partnership and claim your discount here. With Bellhop, booking is a breeze—offering flexible service options, experienced movers, competitive pricing, and top-notch customer support. 

Use Technology

Streamlining your apartment search is easy with online platforms like Zillow, Apartments.com, Rent.com, and Craigslist. These sites let you filter by price, location, and amenities to find options that fit your budget and preferences. Many also offer virtual tours, saving you time by allowing you to check out apartments remotely before visiting in person.

In addition to browsing listings, reviews from current or past renters can provide valuable insights into things like management, maintenance responsiveness, neighborhood atmosphere and get an overall sense of the community. To stay organized, use a spreadsheet to track key details—costs, features, and pros and cons—so you can make the best decision for your needs.

Inspect the Apartment in Person

While photos online might look great, nothing beats seeing the apartment and neighborhood in person. A quick walkthrough helps you spot potential issues that pictures can’t show, like damage, mold, leaks, or pests. Make sure to test everything—appliances, faucets, and lights—to confirm they’re in working order. Here are some key things to check during your visit:

• Water Pressure: Test the faucets in the kitchen and bathroom to ensure strong water pressure. Flush the toilet and turn on the shower to check the flow—this can seriously affect your daily routine.

• Electrical Outlets: Bring your phone charger or another small device to test the outlets in each room and make sure they work.

• Windows & Doors: Open and close all windows and doors to make sure they function smoothly. Look out for drafts, which could mean poor insulation.

• Heating & Cooling: Test the AC and heating to make sure they’re working. Ask if the systems have had recent maintenance to avoid future issues.

Read Lease Agreements Carefully

Signing your first lease is an exciting milestone, but it's important to approach it with caution. A lease is a legally binding document that spells out your rights and responsibilities as a renter. While it may be tempting to rush through this process, taking the time to thoroughly understand your lease can save you from unexpected surprises down the road.  Here are some key elements to focus on:

• Contact Information: Ensure the document includes full contact details for the landlord, property manager, and any involved property agents. Having these contacts easily accessible is essential for communication and resolving any issues that might arise.

• Lease Duration and Renewal Terms: The lease should state the exact start and end dates. Understanding your commitment will help you navigate future housing plans and any potential need for renewal or relocation.

• Security Deposit: Confirm the amount required for the security deposit, as well as its purpose. The lease should explain how the deposit will be used and the conditions for its return upon lease termination.

• Monthly Rent: The lease must specify the agreed-upon amount of monthly rent. Compare this figure to your budget to ensure it fits within your financial plans.

• Payment Timelines: Look for clearly defined payment timelines, including specific due dates for rent payments. This clarity will help you avoid accidental late payments.

• Late Fees: Check for any late fees imposed on overdue payments or returned checks, as it’s vital to understand the potential costs if payments are delayed.

• Payment Methods: The lease should list acceptable methods for paying rent, such as checks, bank transfers, or online payment platforms. Knowing this will help you set up the appropriate payment method in advance.

• Charges & Fees: A detailed breakdown of all charges including fines for unapproved activities or early termination should be included. Each fee definition will give you a transparent understanding of potential costs beyond rent.

• Utility Payments: Clarify which utilities you are responsible for and what, if anything, is included in the rent. This information is key to budgeting your monthly expenses.

• Maintenance Responsibilities: Clarify which parties are responsible for maintenance or additional tasks, ensuring a mutual understanding to avoid conflicts.

• Additional Policies: Verify any special conditions or policies that may apply, such as occupancy limits or pet rules.

• Termination Clause: Pay close attention to the terms for ending the lease. This section should include details about notice periods and any penalties for early termination.

• Insurance and Risk Management: If applicable, confirm any insurance requirements that provide coverage for liabilities or protect against potential risks.

Embark on Your Apartment Journey!

Renting your first apartment is a huge milestone—and an exciting one! By planning ahead, knowing what you want, and staying informed about your rights, you'll make the process smoother and more enjoyable. Your first apartment isn’t just a place to live; it’s the start of creating a space that truly feels like home.

Ready to start your search? Take the first step toward finding your dream apartment today and kick off this exciting new chapter!

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*Actual monthly rates determined based on the specific information provided to Rhino. Monthly payment plans may not be available to all renters.

**Features, prices, coverages, and available discounts may vary by state and are subject to qualifications.

***Disclosure: Based on a 2023 TransUnion study, customers saw a VantageScore® increase of 15 points on average. Results vary. You may not receive an improved credit score. Not all lenders, including auto and mortgage lenders, use scores impacted by rent/utility payments. Not all bill payments may be eligible. Other factors, including activity with other creditors, may impact results.