Renting your first place out of of university is an exciting time. You’ve hopefully landed a job in your chosen field and you’re now ready to have a space to call your own. However, managing your expectations is essential before you start dreaming about how you plan to decorate your new place and what you’ll be up to each weekend. That’s because getting your own apartment comes with a lot of adulting involved.
Finding the right rental takes time
The rental market will be hot depending on where you live in Canada. It’s not realistic to expect multiple vacancies in the most popular areas. As a general rule, you’ll want to make a list of your rental needs and wants. Even with this list in hand, your budget will ultimately be the biggest factor determining where you live.
When starting your search, you’ll likely want to stick to reputable websites, or consider working with a real estate agent to help you find a home. Going this route can help you find properties in better condition. If you plan on searching via sites such as Kijiji and Craigslist, be sure to see any potential home in person. There are a lot of rental scams online these days, so you need to watch out for any fraud. If a rental seems too good to be true, it probably is.
Understanding rental agreements is essential
When you eventually find a place that you’re interested in, your landlord will want you to sign a rental agreement. Instead of putting pen to paper right away, be sure to read the contract. That’s because what’s allowed and not allowed differs by province. For example, in Ontario, landlords can not charge a damage or pet deposit. They also can’t demand you provide post-dated cheques. That said, while there are certain things landlords aren’t allowed to do, they may still require it if you want to be a tenant.
Beyond the rental agreement, you’ll want to read the Residential Tenancies Act in your province or territory. These policies dictate things such as maximum allowed yearly rent increases and what qualifies as legal eviction. Knowing your rights is essential as there’s always the possibility your landlord tries to do something that’s not within policy, such as increasing your rent by more than the allowed amount.
Working with a new budget
Figuring out your monthly expenses when you rent your first place can be tricky, as it’s completely new to you. Start by adding up any existing recurring expenses that you may have, such as your cell phone and student debt. You’ll then want to start factoring in things such as your rent, groceries, internet, utilities, and tenant insurance. Budgeting for additional things such as savings, vacations, and an emergency fund is also a good idea.
Based on your anticipated expenses and income, you’ll have a better of idea what you can reasonably afford. This will help you narrow down your choices regarding the type of unit and location you’re looking for.
Relationship management is required
Many new grads will get a roommate to help offset the high cost of rent. In an ideal world, you’ll get a place with someone you know, but that doesn’t always work out. When living with someone new, you must navigate conflicts, personal space, and personalities. This isn’t always easy, and you’ll often need to compromise. Speaking to your roommate and setting some house rules and boundaries could help keep peace at home.
Even if you live alone, you’ll still need to interact with your landlord. Your rental agreement would have outlined the details, but you’ll still want to talk to your landlord about maintenance, landscaping, and anything related to your rental. Some landlords are better than others, but you have rights as a tenant, so you may need to be firm sometimes.
You’ll need to adapt
Moving out on your own for the first time can be a shock to the system. You’ll no longer be able to rely on your parents to pay all your bills, cook your meals, and clean the home. Even though it’ll seem like you have more free time, you’ll quickly realize that there are only so many hours in a week.
To help you stay on track, consider developing systems that work for you. For example, meal planning and batch cooking can reduce your spending on eating out. Having a cleaning schedule can also help you manage your time and space. There’s also maintaining a healthy work-life balance. Since you’ll be able to create your schedule, try to find activities that you enjoy, so you’re staying active and meeting new people.
Prepare for unexpected challenges
Planning is always good, but there will always be unexpected challenges. For example, an unexpected expense could occur. Having an emergency fund is one way to protect yourself from that scenario. However, there will be incidents that may require more work, such as noisy neighbours or lease disputes. When these things occur, the best thing you can do is assess the situation and see if there’s a way to solve the problem peacefully. Don’t be afraid to seek help if you’re unsure about what to do next.
Final thoughts
Many people are excited to rent their own place after college or university, but they’ll quickly realize that there are many challenges that may occur. Doing as much research as possible will help you prepare, but there will be situations that you can’t plan for. Despite these obstacles, independent living after university can be rewarding.
Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog
Money We Have is one of Canada’s most trusted sources when it comes to money and travel. As a completely self-taught, do-it-yourself investor with no formal training, he makes money easy to understand for all Canadians. His specialties include personal finance, budget travel, millennial money, credit cards, and trending destinations.