The facts are in: renting is underrated.
Why?
For one, it offers great convenience without the commitment of homeownership. Better yet, renting can also help you save money in both the short and long-term.
Renting is much more than a back-up plan to buying. In 2024, it’s a pathway for millions of Americans and recent immigrants to strengthen their form of life.
Of course, the U.S. rental market can seem a bit daunting at first, especially when you’re new to the process.
Here’s the good news: if you’re overwhelmed by renting, then you’ve come to the right place.
In this article, we’ll provide an overview of current rental market conditions, define core criteria for choosing the right home, and deliver key insights into the application process.
Finally, we’ll review the tenets of rental legal agreements before you jumpstart your journey.
U.S. Rental Market: What the Data Says
It’s a great time to be a renter.
While mortgage rates soar and housing inventory shrinks, renters have the upper hand. Simply put, there is a surfeit of unoccupied homes sitting on the market right this moment—and landlords are very eager to lease them.
In fact, nationwide vacancies reached 5.5% in 2023 and could exceed 7% by year’s end.
This surge in availability is largely due to the ongoing construction of new multifamily rental units across the country.
Thanks to increased inventory, median rent costs have flattened over the last year and moderated the pandemic-induced highs of 2021. As a result of these trends, renting is more affordable than homeownership in the greater part of U.S. cities.
From Augusta, Georgia to Fresno, California, monthly rents are falling. In fact, there are only two cities where buying may be cheaper than renting: Jackson, Mississippi and New Orleans, Louisiana.
According to The Economist, renting a two-bedroom home is cheaper than buying a similar property for nearly 90% of Americans—up from just 16% just three years ago.
For example, the monthly costs of a starter home in Austin, Texas run at about $4,000. However, renting a comparable unit in the same area costs around $1,700—saving consumers nearly $2,300 a month.
The times are changing, and renters have the most to gain.
Choosing the Right Home
First things first: where do you want to live?
Once you know where you’re going, you can focus on the details.
If you need a little more inspiration—and if location isn’t mandatory—check out this list of the popular U.S. cities with the most affordable rent.
After you pick your zip code, it’s time to find your home.
As a renter, you’re well-positioned to choose the right place to live. There are many vacancies on the market, so you should expect to get something you genuinely like.
Of course, this is a very personal process. For example, some people prefer homes with natural sunlight, while for others it’s not an essential requirement. Some people prefer to live on the top floor, while others favor a ground-floor garden.
There are many criteria to “choosing the right home,” and only you know what they should be.
As you begin the process, consider using these three categories to help narrow your focus:
1. Rent and Finances
What’s the actual cost of the unit?
In other words, factor in all fees and costs excluded from the advertised rent.
This may include the move-in fee, security deposit, broker fee, application fee, and other miscellaneous charges ( like pet fees, parking fees, and monthly access to the gym or pool facilities).
It’s also important to investigate the estimated cost of utilities.
While confirming if heat and hot water are included in your rent, ask your property manager questions like:
- How are the unit’s appliances powered: electricity or gas?
- How well does the unit retain heat or air conditioning?
- How is the water pressure?
- What cable and internet providers are available?
The price tag is just the opening bid. Rent rates can always be negotiated, both in terms of the lease terms and monthly cost. Just make sure you understand the local rental market so you can bargain from a position of strength.
2. Safety and Security
In the rush to find a great deal, it can be easy to overlook the essentials—like security.
Whether you’re considering an apartment, residential house, or condominium, these questions are important to consider:
- Is a code or card required to enter the building?
- Have the locks been changed after the previous tenant?
- Do residents park in a garage or an open lot?
- If you’re in a high-rise apartment, what is the fire escape plan?
- How many entrances/exits does the building have?
- Are the carbon monoxide and smoke detectors in working condition?
- Is there a fire extinguisher in the unit?
It’s also important to ask the property manager if the unit has been recently checked for mold, and whether or not there is a history of infestation.
Finally, before signing any documentation, ensure that all major appliances are functioning properly, including water taps, stove burners, and any other appliances that use gas.
3. Livability and Functionality
In the digital age, many homes can be rented online, without visiting the property in person.
Though convenient, this modern accessibility can prevent tenants from getting a thorough glimpse at their future home.
Though video calls and walkthroughs provide an overview at the property, they often fail to capture the intangibles, including:
- How quiet or loud is the unit (and building)?
- Are there busy streets or railroads nearby?
- How are the neighbors?
- How close is the trash room?
- How much natural light is there in the morning?
- Is the carpet clean?
- Do the lights and outlets work?
- Are there any stains or cracks on the walls or ceiling?
- Do the doors, drawers, blinds/window shades and kitchen cabinets open and close properly?
Though some of these questions might seem petty, they’re better answered before you apply—and certainly before signing on the dotted line.
Always try to visit the unit in person, but if that’s not possible, ask the property manager as many questions as possible. It’s also recommended to look online for recent reviews of the property and/or local community.
What the Application Process Looks Like
You’ve found an amazing place, and it checks all the boxes.
Now it’s time to apply.
Generally speaking, the rental application approval process is made up of three steps. Only two of require your direct involvement:
Step 1: Gather Your Documents
The housing market can be competitive, even for renters.
In order to move quickly, have your documents at hand when the landlord requests them. Rental application documents often include:
- Photo ID, either passport or driver’s license.
- Contact information, including Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), email address, and phone number.
- Proof of income, including recent pay stubs, tax returns, W-2s, and bank statements.
- Proof of employment, including current employer name and contact information.
- Vehicle information, including make/model and license plate.
- Recommendations from previous landlords and/or professional colleagues.
- Co-signer or guarantor contact information and proof of income.
Though not all of this information may be requested, having it all organized ahead of time will help expedite the application process. If possible, have digital copies of this information ready-to-go on your smartphone or email.
Step 2: Complete the Application
Thanks to websites like Zillow and Apartments.com, you can fill out rental applications from anywhere in the world.
In most cases, you can complete paperwork in the convenience of your own home. However, there are some situations where you may be asked to complete paperwork at the landlord’s office (or during an open house).
Generally speaking, this is what most rental application forms will look like. They generally request the same basic information, including your:
- Full name.
- Current home address.
- Contact information.
- Current employer.
- Employment history.
- Income information.
- Rental history.
- Personal references
- Emergency contact information.
- Guarantor or co-signer application.
- Cover letter, especially if there are extenuating circumstances that merit further explanation.
After your application is submitted, you will be assessed a processing fee between $20 to $50. Most states preclude landlords from charging any more than the amount required to complete their screening, which typically involves a credit and background check.
In most cases, applications take 24 to 72 hours to process the background and credit checks, while verifying your employment and rental history.
However, when landlords are more eager to rent their units—as they seem to be in 2024—they will occasionally approve same-day applications.
Step 3: Application Approval or Denial
The final step requires the most patience—and the results are out of your hands.
As you wait for the verdict, keep an eye out for other homes that may be an equally viable fit.
Though it’s normal to fixate on the application at hand, don’t forget that there are plenty of other great properties on the market.
While most rental offices provide decisions within 72 hours, feel free to contact the landlord directly if they take longer than three business days to respond.
Do keep in mind that, as an immigrant, the Fair Housing Act legally protects you from discrimination when renting or buying a home. If you believe your housing rights have been violated, be sure to file a complaint with the U.S. Department of Housing and Urban Development.
Legal Agreements: What to Know
Once you get approved, it’s time to review the legal agreement.
Note that this document may either be called a “leasing agreement” or a “rental agreement,” depending on the length of time you intend to stay at the property.
Though these terms are often used interchangeably, it’s important to briefly clarify their meaning:
- Renting typically refers to a short-term or month-to-month arrangement between a landlord and a tenant.
- Leasing generally refers to legally binding, long-term agreements that last at least one full year.
In some cases, short-term rental agreements are presented as verbal or “handshake” leases.
Though this may seem appealing, it’s wise to obtain written documentation to protect yourself from foul play and potential eviction.
Most renting and leasing agreements feature the following information:
- The names of all the parties to the agreement (renter, landlord, and guarantor).
- The length of the agreement.
- The amount of monthly rent due, along with the due date.
- Provisions stating when rent is considered late, along with accompanying fees.
- A description about the rented property, including complete address.
- The landlord’s right to access the property, and how much advance notice they must provide before entering.
- Rules defining the tenant’s usage of the space, including pets, smoking, subletting, or modifying the unit (i.e. painting, remodeling, or removing carpeting).
- Stipulations concerning the security deposit, how much is held in escrow, and when the landlord is obligated to return the funds.
- Stipulations about nonrefundable cleaning fees after the move-out date.
Agreements vary depending on the lender and state in question. However, this sample rental agreement provides a good overview of what you can expect to find.
If you have any concerns about your local landlord-tenant laws, realtor.com has a wonderful tool you can use. Simply visit their laws website, select your state, and find answers to your most pressing questions.
Some of the available topics include security deposits, notice of entry laws, pet laws, tenant screenings, property repair laws, and so much more.
uLink: Sending Your Love Home
It’s a great time to be a renter.
While homeownership remains a focus for many Americans, renting has become an increasingly popular alternative.
As we have seen, it’s a more affordable, flexible, and accessible option—especially in 2024.
Plus, the rental market has growing vacancies in nearly every major city (except New York).
With the market in your favor, you’re primed to move forward with confidence as you search for your next home.
Throughout your journey, uLink is here to help you support your loved ones overseas. With great exchange rates (and fees as low as $0), you can send money home with ease knowing that you get more value for the money you send.
Plus, when you use the uLink Money Transfer app, you can place transfers in no time.
Miles from home—just moments away with uLink.
