Jillian Perry, a public relations executive in Chicago, dreams of a “one-bedroom apartment” or a “studio loft with hardwood floors and brick walls.” Ideally, the building would be a block from Lake Michigan, offer central air conditioning, provide free indoor parking, and welcome cats.
All for a monthly rent of $450, which would leave her with enough discretionary funds to continue paying off her credit-card debt.
“This is a fantasy,” says Perry, 26, now living with her Boston-bound boyfriend in a walkup in Hyde Park. “I have to find my own place by September. I’m so stressed out that I’ve been putting it off. I know I’ve got to bring my expectations in line with reality.”
That’s a tall order when it comes to finding a place to live, but especially so for renters fresh out of college dorms or their parents’ houses. Shopping for an apartment can be confusing, daunting, frustrating and time-consuming. And the less you know about the Chicago area, the more challenging the process becomes.
“It always helps if renters have some grasp on the market,” says Stuart Miller, managing broker of The Apartment Source, a Chicago apartment-finding service. “People think they can get a nice two-bedroom in Lincoln Park for $700. I tell them to go look at it. In this real estate market, you truly get what you pay for. A nice two-bedroom in Lincoln Park is going to start at about $1,000.”
It’s also important to remember that renting an apartment is a business transaction. When you sign a lease, you’re promising to pay the grand total spread out over 12 months. So don’t be surprised if a landlord requests tenant and professional references, as well as a credit history.
“You’ve got to let the real estate agent or landlord know upfront about your credit situation,” says Miller, who points out that if you lie on your application, you risk forfeiting your deposit. “People don’t like to invest the time in you and then have you mention, `Oh, yeah, I’ve got bad credit.’ Something usually can be worked out, but you’ve got to be honest.”
But before you study listings, explore neighborhoods or contact a rental agency, you must assess your priorities-and realign them according to their feasibility.
“I’ll be making a lot of tradeoffs,” says a rueful Perry. “I won’t get rid of my cat, so I guess everything else will have to fall in line after that.”
Indeed, until you isolate the non-negotiables-perhaps you must live near public transportation or want a health club on site-it’s tough to know exactly what you want and where to find it, to say nothing of whether it even exists.
What factors should first-time renters keep in mind and what should they know about themselves when they’re shopping for an apartment?
Here’s a checklist:
– Finances. Follow the conventional wisdom, and you’ll end up plunking down 25 percent of your gross monthly income for rent.
But Claireen Herting, senior tax manager in the Chicago office of Coopers & Lybrand, suggests an alternative way to budget housing. “Figure out all of your expenses first, and then see how much remains for an apartment,” she says. “Realistically evaluate your lifestyle as a whole and decide to make cuts accordingly.”
Herting cites a client who justified spending more than half of her salary on rent. “She’d rather entertain at home than go out, and she doesn’t buy a lot of clothing,” Herting says. “For her, this system works.” To help you calculate how much you should spend on rent, itemize your expenditures, which will include food, clothing, school loans, car insurance, entertainment, health club, travel, utilities, gas and credit-card debt.
– Lifestyle/hobbies. How do you spend your free time? You’ll want an apartment that’s conducive to your hobbies, be they listening to music (a soundproof environment), taking care of your dog (a generous floor plan), cooking (an ample kitchen) or Rollerblading (proximity to parks and the lake).
– Apartment style. The more definitive you are about the type of apartment you want, the sooner you’ll sign a lease. When Steven Degodny, 23, decided to move out of his mother’s house in Des Plaines last November, he knew he wanted to rent an apartment in a three-flat, preferably one with hardwood floors. “I would not live in a high-rise, and I wouldn’t even live in a midrise,” says Degodny, a commercial leasing agent in Chicago. “The back yard in a three-flat makes it easy to let my dog out, so we looked only in Lincoln Park, Old Town and Wrigleyville.”
On three consecutive weekends, Degodny and his roommate, a friend from college, saw eight places before settling on their two-bedroom flat in Wrigleyville. “I wouldn’t say we were really systematic, but we definitely knew what we wanted, and that made it easier.”
– Location. Loathe the notion of a long and expensive commute? Then look for a place that’s close to work. Sometimes, the deciding factor in selecting an apartment will be its proximity to family, friends or neighborhood hangouts where everybody knows your name.
– Amenities. Do you want to slave over dirty dishes or slide them into a dishwasher? Are you willing to spend hours searching for a parking spot or would you prefer a guaranteed space in a garage? Is air conditioning vital to your sanity? Weigh the importance of each of these amenities. In the interest of saved time, reduced stress and sound sleep, etc., it might be worth paying extra for some special features. If the apartment doesn’t have central air conditioning, don’t forget to ask whether the building’s electrical system can accommodate window units.
– Timing. Although leasing agents in high-rises typically know of available apartments a few months in advance, you should look for a flat in smaller, vintage buildings no more than 30 days before your target move-in date. “We’re most helpful to our clients who want to be in brownstones when they come to us a month in advance,” Miller says. “A lot of private owners don’t know what they’ll have available before then.”
– Relationship status. If divorce is prompting your apartment hunt, don’t lock yourself into a long-term lease. “You can come to regret decisions that you make in the heat and anger of the moment,” says Jennifer Knopf, a sex and marital therapist in Chicago. “People coming out of a relationship need to give themselves time to reconcile their feelings and decide how they want their lives to proceed. A short-term lease and storage facilities are marvelous resources at this time.”
– Pets. Can’t part with Fido or Fluffy? Once you find a place that allows animals, be prepared to pay a separate pet deposit. “It’s usually $100 to $500,” Miller says. “Sometimes, it’s non-refundable, especially for dogs.”
– Security. While some people favor luxury high-rises with 24-hour doormen, others feel equally secure in a three-flat with an intercom. To assess the situation, stop by at different times and ask residents about their impressions of security. It’s also useful to call the police department to find out the crime rate in the area.
– Transfer clause. Anyone at risk for an out-of-state job transfer needs a transfer clause included in the lease, Herting says. Bring up the issue early in your negotiations with the leasing agent or landlord.
– Insurance. When you’re crunching your budget, add a minimum of $12 per month for insurance, which will cover theft and fire damage. “Over a year, you’ll spend between $100 and $200 on renters’ insurance,” Miller says. “People are very foolish if they don’t get it.”
– Supply and demand. Keep your checkbook handy. If you see an apartment you like, be prepared to take it-and that means leaving a security deposit (usually one month’s rent).
“A client will say, `I like this, but I want to think about it,’ ” Miller says. “I tell them that there’s a good chance it will be rented. Still, they go off and think, and . . . someone else rents the apartment. And then they get mad at us. When you know what you want, there’s really no reason to think twice about it. If the apartment makes financial sense, if it has the amenities you want, if it’s in the right location, what else is there to think about?”
