Rent Like You Own It: 8 Tips To Prepare You For Homeownership While Renting

If you’re planning to buy a house in the future, you’ve probably already started saving for your down payment and making sure your credit is in good shape, which is a great start. Homeownership is a huge commitment and proper preparation will ensure you’re ready for whatever comes your way in the home purchase process.

To give you a leg up, we’ve done some research and found these eight easy tips that will help you ease into home ownership before you ever step foot in an open house.

1. Develop A Record Keeping System

If you’re thinking of buying a home, keeping track of your household finances, maintenance and repairs will come in handy when you’re on your own. Your system doesn’t have to be complicated. Start by designating a drawer or folder for receipts, work orders, appliance warranties and manuals. Write down contact information for maintenance, the landlord or leasing office and utility providers. If an emergency occurs, you’ll be able to contact the appropriate party quickly.

Keeping your records organized and accessible is key when you own your own home because you’ll be responsible for all the upkeep and repairs.

2. Create A Budget

If you haven’t created a budget, there’s no time like the present. Keep it simple and jot down how much steady income you earn in a month. In another column, list your bills and any recurring expenses you have. Be honest with yourself and be sure to include your entertainment budget and anything you regularly spend money on. If you’re a foodie who enjoys a few nice meals out at a month, include an estimate in your expenses.

Understanding your finances will be important when you’re ready to apply for a mortgage. A lender will need to verify your income, assets and debts. They’ll also look into your credit and payment history, so try your best to make your payments on time while renting.

Rent is likely your largest monthly expense and it’s rarely reported to the three credit bureaus. If you pay your rent on time, your credit could get a boost from rent payments being reported. You can’t report rent payments to the credit bureaus yourself. However, there are reporting services that will send information about your monthly payments to credit bureaus. A quick internet search will result in some of the top providers, but be sure to check their reviews. Ask your landlord or leasing office if they use a service to report rent payments because you may be able to use their existing service.

3. Get To Know Your Home’s Major Systems And Appliances 

Whether you rent or own your home, it’s important to know how your home systems work. Start by finding the emergency shut-offs. If your bathroom toilet begins to leak, you can turn off the water source quickly to avoid costly flood repairs. You’ll also want to familiarize yourself with the circuit-breaker box. If the box isn’t labeled, add labels to the individual circuits so you know which rooms and appliances they go to.

Place your appliance manuals, work orders and other documents in a folder or drawer so you can easily find them if something goes wrong. If you don’t have an appliance manual, search the make and model of the appliance online and you’ll likely find a manual or a manufacturer’s website for parts and instructions.

If you have onsite maintenance, ask if they can show you how to shut off a water source or how to reset the garbage disposal. Your future home won’t be the same as the one you’re renting, but learning to problem solve simple maintenance problems now will save you time and money later.

4. Develop A Maintenance Schedule 

Regular maintenance can extend the life of appliances and home systems. Even if you’re renting an apartment with maintenance included, it’s important you make sure a schedule is in place for regular home care. Create a home maintenance checklist and include things like replacing the air filter, cleaning gutters, pressure washing, tree trimming and replacing the smoke and carbon monoxide detector batteries.

Decide which items you can handle on your own and which ones you’ll need maintenance to complete and put them on your calendar as a reminder. Your landlord likely has a schedule in place, but it doesn’t hurt to ask when these items will be completed.

5. Keep Safety Tools And Essentials On Hand 

Fire, flood, and other home emergencies happen. No one can predict a catastrophe, but we can prepare for them. The following are items you should have on hand in case of an emergency.

• Fire extinguisher
• Carbon monoxide detector
• Ladder or step stool
• Small tool kit
• Portable power source
• Flashlight
• Emergency contact list
• A small fireproof safe to store vital records, like birth certificates, social security cards and insurance information

It’s also a good idea to set up an emergency fund. This can be a separate savings account where you save money for emergencies only. There are no rules for how much you should save for an emergency fund. Start small by contributing what you can, when you can. Having some emergency fund is better than none, especially when you become a homeowner.

6. Purchase Insurance 

Your landlord is responsible for purchasing an insurance policy to cover the building you live in, but that policy likely doesn’t cover your personal belongings. It’s common for a landlord to require a tenant to purchase renters insurance to protect their personal items.  

Renters insurance covers your belongings in the case of theft, fire and windstorms but likely won’t cover flooding or earthquakes. If flood and earthquake damage is a concern where you live, talk to your insurance provider for guidance on the type of insurance you should purchase and what the appropriate level of coverage is for your geographic area. You can also add additional renters insurance coverage for things like expensive jewelry, electronics, pets and identity theft for additional peace of mind.

When you become a homeowner, you’ll need to purchase a home insurance policy to cover your house and personal belongings. Good record keeping will make it easier to choose the right policy to protect your assets.

7. Get Familiar With Your Rights And Responsibilities

If you have a lease, read it. We know, it’s not as fun as reading a best seller on the beach, but it will be worth your time. Every tenant has rights and responsibilities, and they should be clearly defined in your lease agreement. A lease agreement should outline how much and when rent is due, when late fees are assessed, maintenance responsibilities and other pertinent details. If your landlord has agreed to something not mentioned in the lease, make sure it gets added to your lease file in writing. If you don’t have a copy of your lease, request one from your landlord. Each state has additional tenant laws to protect both landlords and tenants, so become familiar with those laws and how they can protect you.

Homeowners must follow their own set of rules similar to a lease agreement. When someone purchases a home, they’re given a “bundle of rights.” These are the set of legal rights associated with purchasing real property. If a home is located in a community governed by a homeowners association (HOA), the HOA regulations must be followed as well. Being a good neighbor is important whether you pay rent or a mortgage.

The Bottom Line: Rent Like You Own It

If you’ve been thinking about buying a home in the future, why not start preparing now? Get in the mindset of a homeowner and start developing good habits like budgeting and learning easy home repairs. Think of your home purchase journey as a marathon and not a sprint. Start by making small adjustments to your lifestyle and thinking one step ahead and you’ll end up a winner in the long run.

Ready to hit the ground running? Learn more at about buying a home at the Rocket Homes^SM Learning Center.