How Much Rent Can You Really Afford?
The one question we all ask ourselves is “how much rent can I afford?” Whether you’re
a parent or a person looking forward to a brand-new independent life, it’s important
that you find a place you can afford.
Figuring how much to spend on rent is probably the most daunting step in apartment
hunting. According to financial experts, you should spend no more than a third of your
income on rent annually (if you can afford it).
How to Calculate Your Monthly Rent
If you’re curious about how much of your income you should spend on rent, you just
need a little bit of math. You can make use of online budgeting tools that are designed
for this purpose. These tools can sync all your bank accounts and credit lines, and
help you determine how much of your income you should spend on rent. All you need
to do is to add your bank accounts and credit lines to online tool, and set a monthly
budget that you can live with. The tool will do the math for you and let you know how
much you should spend on rent.
Costs to Think About When Renting an Apartment
There are those costs that are obvious, and there are those that catch most new
apartment dwellers off guard. Before you put your hard-earned money down, think
about the following costs:
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• Moving costs: These include cost of packaging materials, rental truck, and
purchasing extras needed in the new apartment.
• Application fees: Intended to cover administrative costs associated with the
qualification process, including credit and background check.
• Security deposit: In most cases, new tenants are required to put down a
security deposit. Some landlords charge a flat fee, while others require first and
last month’s rent as security.
• Renter’s insurance: Intended to cover losses that may arise when your
apartment contents get damaged by circumstances beyond your control
• Trash service: Expect to incur this cost every month on top of your monthly rent.
• Utilities: Most apartment communities charge tenants for monthly sewer
services. Also consider water, energy and air conditioning bills.
• Internet or cable service: Some landlords include a cable or Wi-Fi package in
You should also consider the costs involved in painting and buying new furniture,
flooring materials and other crucial supplies. Taking all the expenses into account
beforehand will make the process of apartment hunting a lot less complicated.