Your Money_ The Missing Manual - J. D. Roth [100]
Be sure to document everything—even before you move in. To prevent future misunderstandings, record a video tour or take photos of the unit before you fill it with your stuff. If your landlord is there for the tour, that's even better.
Once you move in, live up to your end of the deal. The best way to stay on your landlord's good side is to pay the rent on time. If your check will be late, contact your landlord right away and explain the situation. Offer to pay as much as you can immediately, and give a firm date by which you'll pay the rest.
Tip
Don't forget to get renters insurance. Renters are 50% more likely to be burglarized than homeowners, and just as subject to fires and floods. Your landlord has insurance on the property and the things he owns—but not on your stuff. Plus, renters insurance protects you from liability lawsuits in case somebody gets hurt in your home and sues you. For about 10 bucks a month, renters insurance can give you peace of mind. (For more info, head to http://tinyurl.com/GRS-renters.)
When you're renting, it's vital to have good communication with your landlord to prevent misunderstandings, so don't rent from someone who's slow to return your calls and emails. To avoid disputes, put everything in writing—and ask your landlord to do the same. Try to stay on your landlord's good side; it can pay off in lots of ways. If he likes you, he'll be more likely to reduce rent if you ask, respond quickly to your maintenance requests, and maybe make other concessions.
If you have roommates, choose them carefully. Everyone on the lease or rental agreement is responsible for living by the rules. If your roommate leaves with no warning, you still have to pay the rent in full. (Here's some advice on what to do if you're frugal but your roommates aren't: http://tinyurl.com/GRS-roommates.)
Before you move out, find out exactly what you have to do to get your deposit back. (You and your landlord may have different definitions of "clean.") Just as you toured and photographed or videotaped the apartment with your landlord before moving in, do so again for the move-out inspection.
If you run into a sticky situation while renting (or after you move out), check your local laws. The U.S. Department of Housing and Urban Development has collected links about tenant rights for every state here: http://tinyurl.com/tenant-laws. RentLaw.com is another good resource.
Tip
Spend some time researching tenancy laws in your state by picking up a book like Renters' Rights (Nolo, 2002) by Janet Portman and Marcia Stewart. A few hours spent reading can save you a lot of grief.
Buying a Home
Generally, once you've saved 20% for a down payment and you can afford monthly mortgage payments, you're ready to start looking for a home. Yes, you can buy a home with a smaller down payment, but it'll cost you in the long run. You'll need to carry private mortgage insurance (Private Mortgage Insurance), you'll pay more interest, and you could put yourself in a position where you can't afford to sell your home! For more info, check out the Mortgage Professor's down-payment calculator: http://tinyurl.com/MP-dpcalc.
If you think you're ready to buy a house, take a few months to do a trial run. In The Money Book for the Young, Fabulous & Broke (Riverhead, 2007), Suze Orman says that you should "play house before you buy a house." Here's how:
Figure out how much you think you can afford to pay for a home every month, including mortgage and maintenance. This might be $1,750, for example.
Subtract the amount you're currently paying for rent. If your rent is $1,000 per month, you'd subtract this from the $1,750 to get $750 per month.
Open a new, named savings account (see Targeted Savings Accounts). On the first day of each of the next 6 months, stick $750 into this account.
If you can't make this work financially, Orman says you need to wait: "If you