Congratulations! You have landed a good job and have decided to move into your own living quarters. The first thing to think about is how much you can afford to spend on rent. Financial advisors often suggest that people spend no more than 25 to 30 percent of their income on housing. It is important to set up a budget before you begin your search for housing.

Many young people opt to share expenses with a roommate and in doing so are able to afford the housing they desire. It is important that you and your roommate share a similar lifestyle and set of values. Be sure that a potential roommate is dependable and can afford his or her share of expenses. Many friendships have been broken over money issues that could have been avoided with a little forethought.

If you are moving to a new location where you do not know anyone, it can be a little more difficult to find a roommate. Some people place advertisements in local newspapers and there are many roommate locator services.

Be specific about the type of person you are looking for and don’t be afraid to check references of any and all potential roommates. It is better to find out that a person is a roommate disaster before they move in than after. It is possible to form a lifelong friendship with a carefully selected roommate.

Once you set your budget, decide what kind of housing you are looking for and think about location. Do you want to live in an apartment, or is a house more your style? Remember that the farther you live from where you work and where you most often socialize, the more transportation costs you will incur.

Once you decide on the location you can begin your search in earnest. Start asking friends, relatives, and work associates if they know of affordable housing in the area you prefer. If you are moving to a new city where you don’t have contacts, the internet is a great place to start your research. You will find apartment locator services in most cities and many employers provide assistance with relocation. Never commit to renting a housing unit before visiting the location in person.

Be careful, in your excitement, not to lose sight of these important things during your apartment tours:

Once you have found an apartment you will most likely be required to sign a lease. A lease is a legal document that spells out the details of your rental agreement. Be sure that you understand the terms of the lease before you sign it. An annual lease is one that states you are responsible for all terms for one year from the date of signing. Some landlords allow month to month leases. If your circumstances change, you are not tied to the terms of the lease for a whole year. Be sure to ask how much notice you are required to give in order to move out without penalty.

Asking questions before you sign a lease is important to make sure you understand your landlord’s rental terms. The following are some of the questions you might want to ask:

You will need to call the various utility companies (electricity, telephone, gas, and water) and give each of them the information they require to connect your services. They will walk you through the process but you must initiate the calls. More and more young people are saving money by relying on cell phones and not having traditional phone service set up. Consider this only if you get consistent service in your area.

Do a thorough inventory of the apartment looking for any imperfections, structural damage, or safety concerns and create a list of these. You and your landlord should agree on how these things will be taken care of and include that in your lease agreement. You will probably need to put up a security deposit, usually equal to two months of rent. This should be refunded upon lease termination, assuming that you have kept your payments up to date, abided by the lease, and that you leave the apartment in the same good condition as when you moved in.

Your landlord carries insurance on the building itself, but you may want to consider renter’s insurance. This insurance covers you in the event of property damage, theft, liability, etc. Insurance regulations vary from state to state so check with your insurance agent for additional information.

Take your time to find the right living space and the right roommate. Discuss and understand the agreement you are making with your landlord. Thinking these important things through before making the big move can make a huge difference in the quality of life and the degree of success you have as you step out on your own.