The Double Whammy: New Renters and the Housing Crisis

Some people who believed they had found the place they would call home for the rest of their lives, or at least most of their lives, have been forced to move out because they can't pay the mortgage. "Unwise lending practices" is a phrase that dug into the American consciousness faster than we could say "offshore drilling." The concrete results of these lending practices, however, are far more pressing than a clever turn of phrase as families are forced from their homes. These households face tough decisions and trying times. Often, old homeowners become new renters. Unfortunately, the rental unit is frequently below the living standards of the original property. Sacrificing certain luxuries during tough economic times is one thing. Living in a home that doesn't meet basic needs is another problem altogether.

Finding a House or Apartment to Rent
You need to swallow your pride as quickly as possible so you can make a wise decision about which property you should rent and the terms of the lease you sign. You may even want to look for a month-to-month rental situation if buying a new home is a plausible scenario in the next few months. Finding a house to rent is both similar to and different from looking at houses to buy. The condition of the house or apartment is important, but not in the same way. Even properties in good condition can experience problems, such as roof repair, broken appliances, and plumbing leaks. If you don't have a responsible landlord, these problems will rank anywhere from a moderate hassle to a time-consuming disaster that may require an appearance in court. On the other hand, older properties that may make for a poor investment as a homeowner can be a great rental property if you have a landlord that is willing to make prompt repairs.

Remember you're choosing a landlord just as much as you're choosing a house or apartment. If you're renting from an individual, take the time to meet and talk with the property owner and build a rapport. You may find this individual is a lot more forgiving than your lending institution. If you're renting from a property management company or independent apartment complex, be sure to look these companies up on the Internet. Few companies have perfect ratings, especially as some tenants have unrealistic expectations, but online reviews can frequently help you avoid negligent landlords and property management companies.

Good Government: Tenant Bill of Rights
Local, state, and federal governments may have struggled this year to find the best answer to the housing crisis, but most states have had useful laws on the books for years helping renters ensure basic amenities. This year Colorado is joining the ranks of 48 states, leaving only Arkansas without a tenant bill of rights. Known in legal terms as a "warranty of habitability," the specific statutes naturally vary from state to state and, sometimes, even city to city. (New York City has crafted tenant protections tailored for the unique challenges of renting in the Big Apple.) What most of these legal protections have in common is that these rights cannot be signed away in a lease. Knowing your state's Tenant Bill of Rights can be an invaluable asset against negligent landlords who attempt to use the lease or other circumstances to justify their mistreatment of you and the rental property.

Often, these legal protections guarantee basic conditions in rental units but not much more. Indeed, this is what State Representative Michael Merrifield (D-Colorado Springs) had to say about Colorado's new law, "The irony is this landmark legislation is so simple: it merely ensures that people have four walls, a roof, and basic utilities."

Worst-Case Scenarios: What NOT to Do
As painful as it must have been to leave your old home, the worst thing you can do when renting is abandon the property. If you've signed a lease, you can't simply say you have a negligent landlord, move out, and stop paying rent. In fact, this is the absolute worst thing you can do. You can hold your landlord accountable for many different kinds of infractions, but he, she, or they can also hold you accountable. Rather than move out, create a documented record (mail a notarized letter to your landlord, if you have to) of your attempt to contact the landlord about needed repairs. Then, you should pay to have the problem fixed and subtract this cost from your rent. Of course, this doesn't apply in emergency situations. If your heating goes out, your roof fails, or black mold presents itself, you may be forced to leave, just as your landlord will be forced to make these repairs or provide alternate accommodations within 24 hours of notification.

Additional Tips for New Renters

• Just like any contract, read your lease carefully. Hopefully, neither party needs to invoke the lease as a legal contract, but anything not protected by your Tenant Bill of Rights will be settled by the fine print of your lease.
• Spend as much time as you can possibly spare looking around at different places of advertisement, including the newspaper, craigslist, other Internet sources, property management companies, and real estate agents who specialize in rental properties.
• Be careful, but not too careful. It's not hard to find somebody who has a horror story about carelessly signing a lease, but it's even easier to find somebody who has a story about how they just missed renting the seemingly perfect place. Thoroughly inspect the place before you sign a lease, but don't hesitate assuming you can find something better.
• Spend some extra time thinking about the length of lease you want. You don't want to be stuck in a place when your finances right themselves, but if you don't have a lease or if you have a short-term lease, be prepared for the possibility of your rent to increase when that lease has expired.