1. Draw up a budget
A monthly budget should include:
- Revenue (how much money comes in):
- Income earned from work
- Loans and scholarships
- Parents' educational savings plan
- External financial contribution (e.g., support from parents, grandparents, etc.)
- Expenses (how much is spent):
- Rent
- Fixed monthly expenses (e.g., heat, electricity, water, Internet, cellphone or landline, cable)
- Other variable expenses (e.g., groceries, clothes, school supplies, gas, entertainment, unexpected expenses)
Keep in mind:
- Plan to set aside between 25% and 35% of net monthly revenue for rent each month
- Ask utility and service providers to estimate monthly costs for expenses like heat, electricity, Internet, etc.
- Build future purchases into your budget (for buying furniture and other necessary items)
- Include projections for:
- the moving truck
- stocking the pantry for the first time
- installing and turning on certain services
- painting and decoration
- and more
2. Shop around
- Check classified ads in local papers and online to see what apartments rent for.
- Write down the addresses of any apartments that meet your criteria.
- Compare their rents to what you have budgeted.
- If the rent exceeds 35% of revenue, consider possible solutions:
- Pay less (by getting a roommate, choosing a basement apartment or one with fewer rooms, etc.)
- Increase your revenue
- Explore neighbourhoods, on foot or by car. Visit apartments you've found in the classified ads.
- Make appointments for these visits.
Rank what you find, based on your criteria
- Rank potential apartments in order of preference.
- Contact the landlord if you have questions:
- What utilities are included in the rent (e.g., heat, electricity)?
- What kind of heat is there?
- How long is the term of the lease?
- How many rooms does the apartment have? Are they large? Well-lighted?
- Is the apartment located near public transportation?
- Is the neighbourhood safe?
- How many apartments are in the building? Are the other tenants quiet?
- Does the apartment have a balcony?
- Are pets allowed?
- Etc.
3. Sign the lease
Your teen will need help and advice to make a wise choice. By going along on apartment visits, you'll reassure both your child and the landlord. Once you've found an apartment that suits your child's criteria and budget, it's time to sign the
lease. Because this is a contract with legal ramifications, it's essential to:
- understand what the lease says
- ask the landlord to make necessary repairs, if needed, and add this to the lease agreement
- sign the lease
Note that if your child is under 18 years of age, the landlord will most likely ask you to co-sign the lease.
4. Prepare for the move
Make an inventory of items you'll want to gather or purchase, including furniture and appliances.
Solutions that won't break the bank:
- Find out if family or friends can donate anything
- Buy second-hand furniture or appliances
- Use your creativity when furnishing that first apartment!
- Buy easy-to-install shelving instead of a new armoire
- Mix and match chairs
- And so on
5. Keep on keeping tabs
As soon as your teen moves in, he or she will probably express an opinion about the choices made. As routines become established over the next few months, a more objective view of reality should emerge. Here are some helpful questions you can
ask to help your teen evaluate the situation and, if needed, adjust to it. And who knows—this could help your child avoid similar mistakes next time he or she moves.
- Are you satisfied with your choice of apartment and the decisions you made?
- How does your choice match what you initially wanted?
- Did you properly estimate your income and expenses?
- How did the move go?
- Do you feel at home in your new place?
Discuss budgeting realities
- Offer help if your child is experiencing problems. Balancing a budget can be difficult at first.
- If the budget goes negative (expenses are more than revenue) it’s time for closer scrutiny: Ask whether your teen is spending on unnecessary things. Can revenue be increased?
- Offer to review expenses with your teen each month.
- Reiterate the importance of drawing up a realistic budget before renting an apartment.
- Sticking to a monthly budget will help your child:
- know his or her actual financial situation
- pay off financial obligations
- gradually reach his or her objectives
- identify true needs and wants
- avoid getting into debt
- save for future goals