Renting a Home

Renting for the First Time: A Ground-Up Guide

8 min read · Jun 30, 2023

In This Article

Never rented before? Learn how the rental process works, from apartment hunting and applications to signing a lease and moving in.

Key Takeaways

Set a realistic budget — including upfront costs — before you start apartment hunting.
Landlords review credit, income, and rental history; prepare these documents in advance.
A lease is a legally binding contract: read every clause before signing.
Tenant rights vary by state, but federal fair housing protections apply everywhere.
Document the unit's condition on move-in day to protect your security deposit.
Renter's insurance is inexpensive and covers losses a landlord's policy does not.

How the Rental Market Works

The U.S. rental market connects landlords — individuals or property management companies who own housing — with tenants who pay to occupy that housing under a lease agreement. Listings appear on public platforms, through property management offices, and sometimes via word of mouth.

Rental availability and pricing vary widely by location, season, and housing type. Urban markets tend to be more competitive and expensive than suburban or rural ones. Understanding this landscape helps you set realistic expectations and time your search wisely — most markets see the most listings in spring and summer.

For a broader view of every stage of the rental journey, see The Full Picture of Renting a Home in the U.S..

Lease

A written, legally binding agreement between a landlord and tenant that outlines the terms of renting a property, including rent amount, duration, and rules.

Security deposit

A sum of money paid upfront and held by the landlord to cover unpaid rent or damage beyond normal wear and tear, typically returned after move-out if conditions are met.

Wear and tear

The gradual, expected deterioration of a rental unit from ordinary everyday use — such as small nail holes or faded paint — for which tenants are generally not held financially responsible.

Credit check

A review of your credit report by a landlord or property manager to assess how reliably you've paid debts in the past.

Fair Housing Act

A federal law that prohibits landlords from discriminating against applicants or tenants based on protected characteristics including race, religion, sex, national origin, familial status, or disability.

Landlord-tenant law

State-level laws that define the rights and obligations of both landlords and tenants, covering areas like notice requirements, habitability standards, and security deposit rules.

Setting Your Budget Before You Search

Before browsing listings, calculate what you can genuinely afford. A widely used rule of thumb is to spend no more than 30% of your gross monthly income on rent, though this threshold is often difficult to meet in high-cost cities. Use it as a guideline, not a guarantee of approval.

Factor in upfront costs beyond the first month's rent. Most landlords require a security deposit (commonly equal to one month's rent), and some require first and last month's rent at signing. Application fees, moving costs, and utility setup fees add to the total. Budget accordingly before you fall in love with a unit.

If you're weighing renting against buying, our hub on buying and owning a home covers the financial differences in detail. Building a savings cushion before renting also makes the process smoother — the Saving & Debt resource hub is a practical starting point.

The Application Process Explained

Once you find a promising unit, expect to submit a formal rental application. Landlords use this to assess whether you're a reliable tenant. Standard requirements typically include:

Photo ID (government-issued)
Proof of income — pay stubs, offer letters, or tax returns for self-employed applicants
Credit check authorization — landlords pull your credit report to evaluate payment history
Rental history — contact information for previous landlords, if applicable
References — personal or professional contacts who can vouch for your reliability

Most landlords charge a non-refundable application fee (typically $25–$75) to cover the cost of background and credit checks. Apply only to units you're genuinely interested in to avoid unnecessary fees.

Build Your Rental File Before You Apply

Gather your documents before you start touring units — not after you find one you love. Competitive rentals can move quickly, and having your ID, pay stubs, and references ready can give you an edge. Ask your employer for an income verification letter if you've recently started a new job.

Understanding Your Lease

A lease is a legally binding contract between you and your landlord. Signing without reading it carefully is one of the most common and costly mistakes first-time renters make. Key sections to review include:

Rent amount and due date: Confirms the monthly payment, accepted payment methods, and any grace period before late fees apply.
Lease term: Most standard leases run 12 months. Month-to-month arrangements offer flexibility but often at a higher monthly rate.
Security deposit terms: Specifies the deposit amount and the conditions under which it may be withheld.
Pet policy: Details whether pets are permitted, any breed or weight restrictions, and pet deposit requirements.
Early termination clause: Outlines penalties if you need to exit the lease before its end date.
Maintenance responsibilities: Clarifies what repairs the landlord handles versus what falls to the tenant.

If any clause is unclear, ask the landlord to explain it in writing before signing. You may also consult a local tenant's rights organization for guidance.

Your Rights and Responsibilities as a Tenant

Federal law — specifically the Fair Housing Act — prohibits housing discrimination based on race, color, national origin, religion, sex, familial status, or disability. Many states and cities extend these protections further. If you believe you've been discriminated against, the U.S. Department of Housing and Urban Development (HUD) accepts complaints.

Beyond fair housing, state landlord-tenant laws govern many specifics: notice periods for entry, required habitability standards, security deposit return timelines, and more. Look up your state's laws or contact a local legal aid organization if you have questions about your specific situation.

Your responsibilities include paying rent on time, keeping the unit clean and undamaged, and notifying your landlord of repair needs promptly. You're generally not liable for normal wear and tear — the gradual deterioration that comes from everyday use — but you are responsible for damage you cause.

Consider protecting your belongings with renter's insurance. See Renter's Insurance: What It Covers, What It Doesn't for a plain-language breakdown of typical policies.

guide

HUD Tenant Rights Resources

The U.S. Department of Housing and Urban Development publishes state-by-state guides to tenant rights and local housing resources, including how to file a fair housing complaint.

guide

Consumer Financial Protection Bureau (CFPB) — Renting

The CFPB offers plain-language guidance on renter finances, including understanding lease terms, security deposits, and what to do when disputes arise.

tool

AnnualCreditReport.com

The federally authorized source for free annual credit reports. Reviewing your credit before applying helps you anticipate what landlords will see and correct any errors in advance.

Moving In: What to Do on Day One

Move-in day isn't just about hauling boxes — it's your opportunity to establish a clear record of the unit's condition. Walk through every room with your landlord (or alone if they're absent) and document everything: scratched floors, stained walls, broken fixtures, malfunctioning appliances. Take dated photos or video.

Submit a written move-in inspection report to your landlord and keep a copy. This documentation is your primary defense if disputes arise over the security deposit when you eventually move out.

Confirm that locks work, smoke and carbon monoxide detectors are present and functional, and that all agreed-upon repairs from before move-in have been completed. Our move-in checklist walks you through every room systematically so nothing gets missed.

How much income do I need to qualify for an apartment?

Most landlords require that your gross monthly income is at least two to three times the monthly rent. For example, a $1,500 rent unit may require $3,000–$4,500 in monthly income. Some landlords accept co-signers if your income falls short.

What is a security deposit and how much can a landlord charge?

A security deposit is money held by the landlord to cover unpaid rent or damage beyond normal wear and tear. Limits vary by state — many cap it at one to two months' rent. Your state's landlord-tenant law governs when and how it must be returned.

Can a landlord reject my application without explaining why?

Landlords can generally decline applicants for legitimate reasons such as poor credit or insufficient income. However, they cannot legally reject you based on race, color, national origin, religion, sex, familial status, or disability under the federal Fair Housing Act.

What happens if I need to break my lease early?

Breaking a lease early typically triggers a financial penalty outlined in your lease agreement. Some states allow tenants to break a lease without penalty under specific circumstances, such as military deployment or domestic violence. Always review your lease and local law before acting.

Do I really need renter's insurance?

While not always legally required, renter's insurance is strongly advisable. It covers your personal belongings against theft, fire, and certain other losses — none of which a landlord's building policy protects. Premiums are typically modest, often under $20 per month.

What should I look for when touring an apartment?

Check water pressure, heating and cooling systems, window and door locks, signs of mold or pest activity, and cellphone signal. Test all appliances, inspect the condition of floors and walls, and ask about utility costs and included amenities.

Home & Real Estate Editorial Team

Home & Real Estate Editorial Team is the collective byline for our editorial team and contributor network. Articles published under this byline or an editorial pen name are researched, written, and reviewed according to our editorial standards for clarity, consistency, and independence before publication.