Complete Guide
How to Rent Your First Apartment
- ~15 min read
- Written by CFPs & AFCs
- Backed by national research
You got the job. You are ready to move out. And now you are staring at apartment listings wondering how anyone actually affords this.
That feeling is common. Renting your first place involves more money upfront than most people expect, and the paperwork can feel like a lot. But once you know what to prepare for, the process is very manageable.
This guide walks through every step, from figuring out what you can afford to signing the lease and getting
settled in. The goal is to give you real numbers and practical steps so you can go into it with confidence.
A note about this guide and who wrote it
RedSky Money is a nonprofit organization built specifically to give early-career adults access to professional financial coaching at no cost. Our coaches are Certified Financial Planners (CFPs) and Accredited Financial Counselors (AFCs). We do not sell financial products. We do not offer investment services. We do not upsell you into anything. Coaching is always free, because that is the entire point of why we exist.
We wrote this guide because people starting out have real questions and nowhere to go for
honest answers. If anything here raises a question specific to your situation, you can book a free Discovery Call with one of our coaches at RedSkyMoney. No pitch. No catch.
- Financial Readiness: How Much Does it Cost to Rent an Apartment?
- Preparing Your Paperwork and Credit Profile
- The Apartment Search: Finding the Right Fit
- The Application and Leasing Process
- Moving into Your First Apartment: Logistics and Setup
- Success Tips for the First-Time Apartment Renter
- Frequently Asked Questions
STEP 1
Financial Readiness: How Much Does it Cost to Rent an Apartment?
Before you fall in love with a listing, you need to know what you can actually afford. The monthly rent number is just the beginning.
60 of renters in their 20s say they struggled to afford their first apartment due to unexpected move-in costs.
Source: Apartment List, 2023 Renter Confidence Survey
Calculating Your Monthly Rent Budget
The standard starting point is the 30% rule: spend no more than 30% of your gross monthly income on rent. In many cities, sticking exactly to that number is hard when you are just starting out. But it gives you a useful ceiling.
Here is a quick reference based on take-home pay:
Monthly Take-Home Pay
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
30% Rule (Max Rent)
$750
$900
$1,050
$1,200
$1,350
$1,500
Your Rent Ceiling
$750
$900
$1,050
$1,200
$1,350
$1,500
If your take-home pay makes that ceiling feel out of reach right now, that is okay. Knowing the gap is the first step. A roommate, a smaller unit, or a different neighborhood can all help you close it.
For more on building a spending plan that works at your income level, see our blog post 5 Simple Budgeting Hacks That Actually Work.
Upfront Costs: Security Deposits, Pet Fees, and Application Costs
This is where a lot of first-time renters get caught off guard. Before you move in a single box, you could be looking at several thousand dollars out of pocket.
Cost Item
Security Deposit
First Month's Rent
Last Month's Rent (if required)
Application Fee
Pet Deposit (if applicable)
Moving Costs
Utility Setup / Transfer Fees
Typical Range
1-2 months' rent
Full rent amount
Full rent amount
$25-$100 per applicant
$200-$500+
$300-$1,500+
$50-$200
Add those up for a $1,200 per month apartment with a pet and you could easily need $4,000 to $5,000 ready before move-in day. That is not meant to alarm you. It is just something to prepare for in advance.
The average security deposit in 2023 was equivalent to one to two months of rent, with many coastal markets requiring two months.
Source: National Multifamily Housing Council, 2023
Determining How Much Income You Need to Qualify
Most landlords require your gross monthly income to be 2.5 to 3 times the monthly rent. So for a $1,200 per month apartment, expect them to want at least $3,000 to $3,600 in gross monthly income.
If you are not quite there yet, these options can help:
- Apply with a co-signer or guarantor
- Offer a larger security deposit
- Show proof of savings or a strong bank balance
- Look for a roommate situation to split costs
Factoring in Utilities, Renters Insurance, and Hidden Fees
Your real monthly cost is almost always higher than the rent itself. Budget for these on top of rent:
- Electricity and gas: $50-$150/month depending on unit size and climate
- Water and trash: Sometimes included, sometimes not. Always ask.
- Internet: $40-$100/month
- Renters insurance: $10-$25/month
- Parking: $0-$200/month depending on location
- Laundry: $30-$60/month if no in-unit machines
Renters insurance is one of the smartest small expenses you can have. It covers your belongings if they are damaged or stolen, and it can protect you from liability if someone is injured in your unit. Many landlords now require it, and even when they do not, it is worth having.
29% of renters in their 20s did not account for utility costs when setting their apartment budget, leading to financial shortfalls in the first few months.
Source: LendingTree, 2022 Renter Study
Want help mapping all of this into a monthly cash flow plan that actually works? Book a free Discovery Call with RedSky Money.
Red Sky Money is a nonprofit. Coaching is always free. No products, no upsells, no catch.
STEP 2
Preparing Your Paperwork and Credit Profile
Once you know your budget, the next step is getting your application in order. Landlords want to know you will pay on time and take care of the place. Your paperwork and credit history are how you demonstrate that.
Essential Documents for Your Rental Application
Most landlords will ask for:
- Government-issued ID (driver's license or passport
- Proof of income: pay stubs, an offer letter, or bank statements
- Social Security number for a credit and background check
- References from past landlords or employers
- Bank statements from the last 1-3 months
If you just started a new job, bring your offer letter on company letterhead. Most landlords will accept it in place of pay stubs as long as the salary and start date are clearly listed.
How to Rent an Apartment with Bad Credit
A low credit score does not automatically disqualify you. It does make things harder, but there are practical moves that can help:
- Be upfront with the landlord before they run the check
- Offer a larger deposit, two or three months upfront signals lower risk
- Show strong income or a healthy savings balance
- Bring a co-signer with good credit
- Focus on private landlords, who tend to be more flexible than large property management companies
The average credit score for adults aged 20-29 is 660, which falls in the “fair” range. Many landlords prefer a score of 650 or higher, so most first-time renters are close to the threshold.
Source: Experian, 2023 State of Credit Report
How to Rent an Apartment Without Credit History
No credit history is different from bad credit, and many landlords understand that. If you have not borrowed before, here is what can help your application:
- Provide consistent pay stubs or bank statements showing regular income
- Get a co-signer or guarantor
- Offer to prepay two to three months of rent upfront
- Provide a strong reference from an employer or professor
- Look for smaller landlords or shared housing situations that do not run formal credit checks
Building credit takes time, but there are low-stakes ways to start. A secured credit card or a credit-builder loan through a credit union are both common entry points that do not require existing credit.
Finding a Guarantor or Co-signer to Secure Your Lease
A guarantor agrees to be legally responsible for the rent if you cannot pay. This is often a parent, but it can be any adult with solid credit who trusts you.
Before you ask someone to be your guarantor, have a direct conversation about what the commitment involves. Show them the lease. Make sure they know what they are signing. This is a real financial favor, and treating it that way protects the relationship.
Want to understand your credit picture before you apply? A free Discovery Call with Red Sky Money can help you see where you stand and what to focus on first.
Red Sky Money is a nonprofit. Coaching is always free. No products, no upsells, no catch.
STEP 3
The Apartment Search: Finding the Right Fit
Now for the part that is actually a little exciting. Finding an apartment is a process, but it is also a real
opportunity to set yourself up well.
Prioritizing Location, Amenities, and Commute Times
Your commute affects your finances more than a lot of people realize. A cheaper apartment far from work can end up costing more when you factor in transportation, time, and wear on a car. As you compare places, think about:
- How far is the commute to your workplace?
- Is public transit available if you need it?
- Are grocery stores and a pharmacy within reasonable distance?
- What does the neighborhood feel like at different times of day?
Amenities matter financially too. In-unit laundry saves roughly $30-$60/month compared to a laundromat. A building gym can eliminate a $40-$80/month membership. Factor those in when you are comparing monthly costs across different units.
Where to Look: Best Websites and Apps for First-Time Renters
The most widely used platforms are Zillow, Apartments.com, Trulia, Facebook Marketplace, and Craigslist. Each has its strengths:
- Zillow and Apartments.com: Strong filtering by price, size, and amenities. Good photos and map views.
- Facebook Marketplace: Good for finding private landlords, who often have more flexibility on requirements.
- Craigslist: Can surface deals, but requires caution. Always verify a listing before sharing personal information
- Local property management websites: If you know which company manages most buildings in an area, go directly to their site.
Set up email alerts so new listings reach you right away. In competitive markets, good apartments move in hours, not days.
Red Flags to Watch for During Apartment Tours
Photos can be flattering. In-person tours tell you the real story. During any showing, look for:
- Water stains on ceilings or walls, which can indicate leaks or mold
- Evidence of pests such as droppings or gnawed baseboards
- Doors and windows that do not close or lock properly
- The actual condition of appliances, outlets, and fixtures
- Any smell suggesting mold, heavy smoke, or animal damage
- How the landlord or property manager behaves during the tou
That last one is easy to overlook. How someone treats a showing often tells you exactly how they will handle a broken heater at 9pm in January.
Not sure how a new rent payment fits into your overall financial plan? Get a clear picture before
you sign anything. Book a free Discovery Call with RedSky Money.
Red Sky Money is a nonprofit. Coaching is always free. No products, no upsells, no catch.
STEP 4
The Application and Leasing Process
You found a place you want. Now you need to get it. Here is what the process looks like from application to signed lease.
How to Rent an Apartment: A Step-by-Step Walkthrough
Step 1: Submit your application with all required documents and the application fee.
Step 2: The landlord runs a credit check and background check.
Step 3: your income is verified and your references are contacted.
Step 4: You receive a decision, typically within one to five business days.
Step 5: If approved, review the lease carefully before signing a single page.
Step 6: Pay your security deposit and first month’s rent to secure the unit.
Step 7: Sign the lease and get copies of every document.
Step 5 is the one people rush. Do not. A lease is a legally binding contract and you should read every word of it.
Understanding Lease Agreements and Legal Terms
A few terms worth knowing before you sit down to review a lease:
- Lease term: How long the agreement lasts, usually 12 months
- Month-to-month: More flexible, but often more expensive and easier for a landlord to end
- Early termination clause: What happens if you need to leave before the lease is up
- Subletting: Whether you are allowed to have someone take over your lease
- Grace period: How many days after the due date you can pay rent before a late fee applies
- Renewal terms: What happens automatically when your lease expires
If anything in the lease does not make sense to you, ask the landlord to explain it before you sign. That is a completely normal and reasonable thing to do.
Negotiating Rent and Lease Duration
Rent negotiation happens more often than people think, especially when a unit has been sitting on the market or when you are a strong applicant with everything ready to go. A few things that can work in your favor:
- Offering to sign a longer lease (18 or 24 months) in exchange for a lower monthly rate
- Asking for the first month free or a reduced security deposit
- Timing your search for winter months, when fewer people are looking
- Being organized and prepared. Having every document ready before you tour signals that you are a reliable tenant.
The worst a landlord can say is no. There is no cost to asking.
Want to make sure your new rent works inside a broader financial plan? A free Discovery Call with RedSky Money can help you build that plan before you commit.
Red Sky Money is a nonprofit. Coaching is always free. No products, no upsells, no catch.
STEP 5
Moving into Your First Apartment: Logistics and Setup
You signed the lease. The place is yours. Now comes the actual move.
Scheduling Your Move and Hiring Help
If you are hiring movers, book at least two to three weeks in advance. Weekends and the last few days of the month fill up fast because many leases start then.
A few things to sort out before move-in day:
- Confirm your move-in date in writing from your landlord
- Reserve the building elevator if there is one
- Arrange parking for a moving truck or vehicle
- Let friends or family know the date early if you are asking for help
If budget is tight, renting a cargo van for a day is often significantly cheaper than hiring a full moving company. Many areas also have day-labor moving platforms where you can hire one or two people to help load and unload.
Setting Up Electricity, Water, and High-Speed Internet
Before your move-in date, contact utility providers and schedule service to begin the day you take possession of the apartment:
- Electric and gas: Call at least a week out, transfers can take several days to process
- Water: Often handled by the landlord, but confirm this in writing before you assume
- Internet: Can take one to two weeks if a technician needs to come out. Schedule early.
- Renters insurance: Set this up before move-in day since many landlords require proof at key pickup
Some utilities may require a deposit if you have no prior account history with them. Factor that into your move-in budget alongside the security deposit and first month’s rent.
Completing the Initial Walkthrough and Move-in Inspection
This step is critical and easy to skip when you are excited. Do not skip it.
Before you bring in a single box, walk through the entire unit with your landlord or property manager and document everything you see. Take photos and short videos of:
- Any scratches, dents, or marks on walls, floors, or doors
- The condition of all appliances
- Stains on carpet or damage to fixtures
- The state of window screens, blinds, and exterior doors
Send those photos to your landlord by email the same day and keep your own copy. When you eventually move out, that documentation is what protects your security deposit from unjust deductions.
Just moved in and feeling the weight of new monthly expenses? A free Discovery Call with RedSky Money can help you build a cash flow plan so everything stays manageable.
Red Sky Money is a nonprofit. Coaching is always free. No products, no upsells, no catch.
STEP 6
Success Tips for the First-Time Apartment Renter
Getting the apartment is one thing. Staying organized and financially stable once you are in is what makes it work long term.
Building a Positive Relationship with Your Landlord
Your landlord has real influence over your day-to-day life. A professional and respectful relationship makes everything easier.
- Pay rent on time, every month. This is the single biggest factor in how a landlord treats tenants.
- Report maintenance issues promptly and always in writing
- Be respectful of building rules and your neighbors
- Communicate clearly, even when something is frustrating
When lease renewal comes around, a landlord who trusts you is far more likely to hold rent steady or offer flexible terms. That trust is built slowly and consistently.
Renters who maintain on-time payment records are significantly more likely to receive positive references and favorable renewal terms from their landlords.
Source: Harvard Joint Center for Housing Studies, 2023 America’s Rental Housing Report
Managing Monthly Bills and Automated Payments
Once you are set up, staying organized is what keeps the stress low. A few things that help:
- Set up autopay for rent if your landlord allows it. Late fees add up quickly.
- Create a simple monthly budget that includes every recurring cost, not just rent
- Build an emergency fund gradually. Even $25 to $50 per month grows over time.
- Check your renters insurance annually to make sure your coverage still matches what you own
Building a small emergency fund is one of the most important financial moves you can make in your first apartment. It is the thing that keeps an unexpected car repair or medical bill from turning into a real crisis.
For a simple way to start, our blog post How to Start an Emergency Fund in 3 Simple Steps at redskymoney.org walks through it in plain language.
If you are also carrying student loans or other debt alongside your new rent payment, From Overwhelmed to Organized: A Real Plan for Paying Off Debt at redskymoney.org is a good next read.
57% of Americans could not cover a $1,000 emergency expense from savings, with the numbers even higher for adults under 35.
Source: Bankrate, 2023 Emergency Savings Report
Want a realistic plan for managing all of your new monthly expenses? Book a free Discovery Call with RedSky Money. We help early-career adults build money habits that actually hold up.
Red Sky Money is a nonprofit. Coaching is always free. No products, no upsells, no catch.
Conclusion
Renting your first apartment is a big step. It is one of the first times you are fully on the hook for a major recurring financial commitment, and it can feel like a lot at once.
But the people who handle it best are not the ones who had it all figured out from day one. They are the ones who prepared ahead of time, asked questions when things were unclear, and adjusted along the way.
You now have a clear roadmap for every stage of the process. Use it to go in prepared and grounded.
And if you want someone in your corner as you figure out how rent, bills, savings, and debt all fit together in your actual life, that is exactly what RedSky Money is here for. We are a nonprofit. Our coaches are CFPs and AFCs. There is nothing to buy, nothing to sign up for, and no product waiting for you at the end of the call. Just an honest conversation with a credentialed coach who is there to help.
A free Discovery Call costs you nothing and could be the clearest financial conversation you have had yet.