As a renter, figuring out how much rent you can afford is crucial before commencing your rental home search. By carefully examining your household budget, you can precisely estimate how much rent you can afford. To confidently search for a rental home that is perfect for your lifestyle and spending limits, it is essential to obtain accurate income and expense numbers.
However, it’s important to stay open-minded and explore a variety of choices during your rental home search since several property management companies offer various types and variations of rental properties.
Assess your monthly income and expenses
Rental experts mostly suggest that you should be spending no more than 30% of your gross income on rent on an annual basis. This reflects your gross income before taxes and other expenses, rather your net pay. Based on your annual income of $40,000 from all sources, it is recommended that you aim for a maximum rent amount of $1,000 monthly.
Obviously, this is a simple way of figuring out how much rent you can afford. It is important to keep in mind that there are often other expenses to consider.
For example, if you have a substantial amount of debt or make large monthly payments that are inevitable, these expenses should be included in your calculations. In addition, your budget ought to be include a detailed list of two types of expenses: fixed and variable. Including food, transportation, medicine, utilities, and other necessary expenses in the “fixed expenses” category is a wise decision. Entertainment, vacation travel, and other similar events can be considered “variable” (a.k.a. optional).
Once you’ve estimated how much you’re spending and where, you can more easily come to a realistic estimate of how much rent you can actually afford. Going with the 30% rule in areas with high rent might be problematic. This may require adjusting some other expenses to better afford your rent.
How to approach landlords or property managers
Certainly, the amount you assume you can afford to pay is only one-half of the computation. When applying for a rental home, different property management companies and landlords may have different opinions on what makes a tenant desirable. Despite being able to demonstrate that you can afford the advertised rental rate, some property managers or landlords may be unwilling to offer you a lease for different reasons.
Despite all of your best attempts, there may be occasions when the rental home you desire is leased to someone else. During times like these, it’s important to stay positive and continue to manage or improve your financial situation. Take note that not acquiring a specific rental home does not indicate that you’re not a strong candidate for a different property. Keep applying for rental homes within your affordability range, and you’ll find the perfect one.
Are you searching for a new rental home in Burlington or nearby? Real Property Management Teyata is here to assist you! Check out our available listings and take the opportunity to communicate with us if you want more information.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
