I signed my first lease a month ago after graduating in May this year. I finally settled on an apartment in Brooklyn but the process was short of frustrating and expensive. After going through the process, here are some of the tips I have for anyone looking to save cost while getting their first apartment.
Save, Save, Save (Months before your intended move in date)
The first step to having a smooth process is saving enough money in advance while planning your move. Most places that I looked into in New York & New Jersey required a security deposit(~1-2 month’s rent), 1st month’s rent and sometimes a broker’s fee which ranged from 1-2month’s rent. If, for example, you are interested in a place that costs $1500 rent per month, you should prepare at least $5250. Here’s the breakdown:
- 1st month rent: $1500
- Security deposit(1.5 month’s rent): ~$2250
- Potential broker’s fee(1 month’s rent): $1500
This is excluding moving expenses, administration and processing fees, furnishing and decorating as well as some money to keep you going if you do not yet have a sources of income. Saving gives you a cushion as you anticipate the financial bump coming your way.
Create a Budget for What You Want
The cost of moving into a new apartment sky-rockets off the bat because of the not-so-hidden but hidden fees that most people are not aware of. It is important to create a budget to make sure you stick to what you can afford, what you can compromise on and what is available in the market. Creating a budget is a smart way to save money because you eventually make the housing options available fit what you have to spend and not the other way round. You filter your searches based on your budget and most, if not all, of your future decisions from furnishing to decor will accommodate what you can afford.
Consider Roommates
Let’s be honest, most of us would prefer to be living solo in a luxury apartment somewhere in Soho, but unfortunately, not all of us can afford that, especially in big cities such as New York. Living with roommates automatically cuts your prices because the costs are split between more than one person. Be sure to choose people who will be a good fit for you, especially if you are signing a lease that is longer than three months.
Getting roommate(s) is also a good option if you have bad credit and they do not. Your roommate can submit their credit report instead and you guys will stand a better chance of securing the location because of their better credit standing.
Consider a Location Away From The City
Rental units are typically pricier the closer they are to a big city. In my situation, living in Manhattan would have been more costly than what I am currently paying for my Brooklyn apartment. Consider living away from a big city for cheaper/more affordable options and more spacious homes. Be sure to stay keen on the commute time and trains/buses if your work location is in the city.
Consider asking for help🤷♀️🤷♀️
Asking for financial support can be an option when you are trying to secure your first apartment. There should be no shame in asking for help especially when you need it most. Not everyone will have ~$6000 to help them secure an apartment straight out of college. Tap into your network of close friends and family who could help you out with the finances. Remember, EVERY CENT COUNTS, so be sure to take advantage if you can while minimizing on a big debt potential by sticking to your budget.
I also made a video of some of the questions you can ask your landlord/broker. Here’s the link to it: