Renting 101

Renting in America: A Complete Guide for First-Time Tenants

8 min read · Jan 28, 2023

In This Article

From apartment hunting and applications to move-in day and move-out, everything a first-time renter needs to know in one place.

Key Takeaways

Landlords typically require proof of income, credit history, and references during the application process.
Your security deposit is legally protected in most states — landlords must return it within a set deadline.
Read every clause of your lease before signing; verbal promises from landlords are hard to enforce.
Documenting the apartment's condition at move-in protects you from unfair charges when you leave.
Tenants have legal rights around habitability, privacy, and protection from retaliation that vary by state.

How the Rental Market Works

Renting means paying a property owner — a landlord — for the right to live in their property for a defined period. The relationship is governed by a lease, a legally binding contract that spells out obligations on both sides. Unlike buying, renting does not build equity, but it offers flexibility and predictable short-term housing costs without the responsibilities of ownership. If you're weighing those trade-offs, our balanced comparison of renting vs. buying can help you think through the financial and lifestyle factors.

Rental markets vary enormously by city and neighborhood. Vacancy rates, local housing demand, and seasonal timing all affect how competitive the market is and what leverage you have as an applicant. In high-demand cities, well-priced units can receive multiple applications within days. In slower markets, you may have room to negotiate on rent or move-in terms.

Lease

A written contract between a tenant and landlord that sets the terms of renting — including rent amount, length of stay, and rules for both parties.

Security deposit

An upfront payment held by the landlord that can be used to cover unpaid rent or damages beyond normal wear and tear. Most states regulate how and when it must be returned.

Gross monthly income

Your total earnings before taxes and deductions. Landlords typically use this figure — not take-home pay — when evaluating whether you can afford the rent.

Normal wear and tear

The expected, minor deterioration of a rental unit through ordinary use — such as small nail holes or faded paint. Landlords generally cannot charge tenants for this.

Co-signer

A person who agrees to be legally responsible for the lease if the primary tenant fails to pay rent or fulfill other obligations. Often a parent or trusted adult with established credit.

Quiet enjoyment

A tenant's legal right to use their home peacefully without unreasonable interference from the landlord, including unannounced entry.

Searching for an Apartment

Start your search with a clear picture of your budget. A commonly used guideline is to spend no more than 30% of your gross monthly income on rent, though your own financial situation should guide that number. Factor in utilities, renter's insurance, and parking if they aren't included.

Use a mix of listing platforms, local property management company websites, and community bulletin boards. When touring units, look beyond aesthetics: test water pressure, check cell and internet signal, note the condition of appliances, and ask about pest history. Visit at different times of day to get a realistic sense of noise and foot traffic.

Before committing, research the neighborhood — proximity to work, transit access, safety, and nearby amenities all affect your daily quality of life. Ask current or former tenants about their experience with the landlord's responsiveness to maintenance requests.

Applying and Getting Approved

Most landlords require a rental application that includes your Social Security number (for a credit check), proof of income, employment history, and references. A common income standard is gross monthly earnings of at least three times the monthly rent, though this varies by landlord and market.

If your credit history is limited or imperfect, consider offering a larger security deposit (where allowed by law), finding a co-signer, or providing additional documentation such as bank statements showing consistent savings. Be honest on your application — misrepresenting information can be grounds for lease termination.

Boost Your Application Before You Apply

Pull your credit report at AnnualCreditReport.com before applying so you know what landlords will see. Dispute any errors in advance. Having your documents — pay stubs, bank statements, references — ready to submit immediately gives you an edge in competitive markets.

Under the federal Fair Housing Act, landlords may not discriminate based on race, color, religion, sex, national origin, disability, or familial status. Many states and cities add further protected categories. If you believe you were unlawfully denied, contact HUD or a local fair housing organization.

Reading and Signing the Lease

Never sign a lease you haven't read in full. Pay close attention to these clauses:

Lease term and renewal: Is it a fixed-term (commonly 12 months) or month-to-month agreement? What notice is required to end it?
Rent and increases: When is rent due, what are late fees, and under what conditions can rent be raised?
Security deposit: How much is it, what can it be used for, and when must it be returned?
Maintenance responsibilities: Which repairs fall to you versus the landlord?
Guest and subletting policies: Extended guests or subletting without permission can violate your lease. Our guide on subletting rules and risks covers this in detail.
Pet, smoking, and alteration rules: Know what's permitted before you move in.

If the landlord makes verbal promises — upgraded appliances, a fresh coat of paint — get them in writing as a lease addendum before you sign. Verbal commitments are difficult to enforce.

Move-In, Living There, and Moving Out

Move-in day: Walk through the unit with the landlord and document every existing scratch, stain, or damage with dated photos. Sign a move-in condition checklist and keep a copy. Our move-in checklist for new renters covers every room to ensure nothing gets missed.

During the tenancy: Pay rent on time, report maintenance issues in writing, and keep a record of all communications with your landlord. Understand that you have legal rights — including the right to a habitable home and protection from unlawful entry. For a fuller picture of those protections, see our overview of tenant rights landlords don't always share.

Moving out: Give proper written notice per your lease terms (commonly 30 to 60 days). Clean the unit thoroughly and repair minor damage you caused. Do a walk-through with the landlord if possible, and document the unit's condition again. Follow up in writing on your security deposit return deadline — your state's law sets that timeline, and failure to return it on time can entitle you to additional damages.

This article is for general informational purposes only and does not constitute legal or financial advice. Tenant rights and landlord obligations vary by state and locality. Consult a qualified attorney or local tenant advocacy organization for guidance specific to your situation.

How much do I need saved before renting an apartment?

Plan to have first month's rent, last month's rent (if required), and a security deposit — often one to two months' rent. Some landlords also charge application fees. In total, budget two to four months' worth of rent before moving in.

Can a landlord reject my application without explanation?

In most cases, yes, though landlords cannot legally reject applicants based on race, religion, national origin, sex, disability, or familial status under the Fair Housing Act. If you suspect discrimination, you can file a complaint with the U.S. Department of Housing and Urban Development (HUD).

What happens if I need to break my lease early?

Breaking a lease early usually triggers an early termination fee or liability for remaining rent until a new tenant is found. Review your lease's early termination clause before signing. Some states require landlords to make reasonable efforts to re-rent the unit.

How long does a landlord have to return my security deposit?

Deadlines vary by state, typically ranging from 14 to 60 days after move-out. The landlord must provide an itemized list of any deductions. Keep records and photos from move-in to dispute unjustified charges.

Is renters insurance required?

Renters insurance is not required by law, but many landlords include it as a lease requirement. Even when optional, it is generally worth carrying — it covers personal belongings, liability, and temporary housing costs if your unit becomes uninhabitable.

Can my landlord enter my apartment without notice?

Most states require landlords to give at least 24 hours' notice before entering, except in genuine emergencies. Your right to quiet enjoyment of your home is a standard legal protection. Check your state's specific rules for exact requirements.

Real Estate Editorial Team

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.

Renting in America: A Complete Guide for First-Time Tenants

Key Takeaways

How the Rental Market Works

Searching for an Apartment

Applying and Getting Approved

Reading and Signing the Lease

Move-In, Living There, and Moving Out

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