Looking for a rental home? 5 recommendations from an expert

Explore the rental market offers, consider your needs, and set a budget within which your future rental home should fit. "It’s important to ensure a balance between a person’s income and expenses. The rent amount and utility bills should not exceed half of your monthly expenses (in extreme cases, up to 60%)," explains Lia Siht, Head of Legal at Rendin.

Since utility costs can vary significantly between different properties, it is always advisable to review the previous utility bills for the specific rental home, covering both summer and winter seasons. These amounts might be quite different, for better or worse, from what a person is used to.

It is also important to agree with the landlord on whether the tenant is responsible for covering additional expenses, such as maintenance or improvement costs for the building, and to what extent. This way, the tenant can ensure that the total sum of all payments does not exceed their financial capacity.

In addition to the heating solution, it's also essential to ask about the electricity service (whether it's a fixed-rate or market price-based plan). This helps with better budgeting and allows you to plan when to avoid higher electricity consumption, among other considerations.

"When considering the current reality, where prices are rising rapidly, inflation is high, and hefty autumn-winter heating costs can throw budgets off balance, it's important to maintain some financial reserves to manage comfortably," emphasizes the legal expert. "People need to be prepared for price surprises, which are rarely kind to our wallets."

"If there is no savings buffer and rent makes up a significant portion of a tenant's monthly expenses, even a small price increase can blow the budget and cause financial difficulties. That’s why tenants should ensure they have a sufficient safety net for unexpected events, such as job loss," explains Siht.

In economically uncertain times, Rendin helps mitigate the fears of both tenants and landlords regarding payment difficulties. "If a tenant falls into debt, Rendin compensates the landlord for up to three months, and the tenant can repay us without interest over a suitable period. In a standard rental agreement, however, the tenant is left to handle the issue alone," she adds.

When searching for a rental home, it’s essential to consider the upfront costs in addition to the first month’s rent. Is the rental deposit-free or does it require a security deposit? Are there any broker or contract fees?

The one-time expenses at the start of a rental can vary significantly. For example, if the monthly rent is €550, deposit-free renting would mean the initial cost is just the first rent payment. However, if additional one-time fees are required upon moving in, the tenant's total costs could reach €1,650 (one month’s rent, a security deposit equal to one month's rent, and a broker’s fee). In cases where a deposit of three months’ rent is required, the tenant would need to budget €2,750 for move-in costs.

On the Rendin platform, all rental listings are deposit-free. This allows tenants to begin renting with lower upfront costs and gives them a larger savings buffer for emergencies. Instead of the typical security deposit, tenants pay Rendin a monthly service fee, which is 2.5% of the monthly rent. For a €550 rental, the monthly fee would be €13.75.

The rental market often has numerous properties seeking tenants, and it's not uncommon for one rental home to have multiple candidates, sometimes even as many as twenty. During busy periods, landlords can be overwhelmed by the number of prospective tenants, meaning they need to actively communicate with interested parties, respond to questions, and schedule viewings.

Therefore, it’s important not to get discouraged if you don’t receive immediate or any feedback. It’s wise to keep several options open and not focus solely on one rental. Being proactive and reaching out to the landlord can help make yourself known.

Lia Siht suggests that the best way to stand out from competing applicants is to invest a little more in how you present yourself. Sharing a brief personal introduction or résumé with the landlord is a great way to make a first impression and build trust. But what should you include?

"A short overview of yourself, what you do (education, job, interests, etc.), who you plan to live with in the rental, why you are interested in this particular property and area, and how long you intend to stay there," she suggests as possible talking points. "This makes it easier for the landlord to decide if the candidate is a good fit for the rental property."

Once you’ve selected a place to live and it's time to sign the lease, it’s crucial to carefully review the rental agreement and its contents. The lease must comply with the Law of Obligations Act (which regulates rental relationships) and be fair to both parties.

If you decide to sign the rental agreement on the Rendin platform, we help ensure a secure lease signing and handling process. Additionally, both parties don’t have to worry about the legality of the rental agreement, as our contracts are prepared by legal experts.

However, it’s important to pay attention to any special conditions in the lease, as we do not verify these separately. It’s common for landlords to add additional terms to the lease according to their preferences, so it’s essential to assess whether those points comply with the Law of Obligations Act.

• Read the entire rental agreement carefully before signing. If something needs clarification or explanation, don’t hesitate to ask questions.

• Ensure you know the type of your rental agreement—whether it is fixed-term or termless, and what the conditions for terminating the lease are. Rendin’s rental agreements are always termless, as our legal experts believe this is the most flexible and secure type of lease for both parties.

• It is important to properly document all activities related to the rental. This includes the lease agreement itself, the payment details, as well as the handover-acceptance protocol. All documents should comply with the Law of Obligations Act and be formatted in a way that they can be used later as evidence in case of disputes.

• Determine what is stated in the agreement regarding various payment obligations. First, find out if rent payment is made via bank transfer or in cash. If payment is in cash, the tenant must receive written confirmation from the landlord for each payment. For example, the landlord can confirm receipt of the money with a signature or an email containing the relevant information.

  Second, clarify how utility bill payments are organized: are they paid directly to the service provider or to the landlord based on an invoice, and what are the payment deadlines?

• Clarify your rights and obligations as a tenant. For example, determine who else you are allowed to have living in the apartment, whether you can replace (old) furniture, or if you can hang pictures on the walls. All such agreements must be in writing or in a form that allows for reproduction.

• Check what the agreement states about normal wear and tear — whether the landlord accepts it or has stipulated that the rental property must be returned in a condition free from deterioration or damage resulting from ordinary contractual use. This is an important point in the rental law that came into effect in 2021.