When seeking a rental property, it’s imperative for renters to have an idea of how much rent they can afford. The most efficient approach to determine exactly how much rent you can afford is by carefully examining your household budget. By gaining accurate income and expense numbers, you can certainly search for a rental home that properly corresponds to your daily life and financial situation.
On the other hand, it is a good idea to be flexible and open to alternatives when doing your rental home search because various property management companies offer multiple kinds and variations of rental properties.
Assess your monthly income and expenses
Rental experts typically suggest that you should be spending no more than 30% of your gross income on rent every year. This represents your gross income, not your take-home salary, before taxes and other deductions. For example, if you get $40,000 annually from all sources of income, the best maximum monthly rent amount would be $1,000.
Undoubtedly, this is a simplified way of figuring out how much rent you can afford. Consideration must often be given to other expenses.
Let’s say you have a lot of debt or make large monthly payments that you are unable to modify or lessen; these expenses must be included in your calculations. Moreover, your budget should cover a detailed list of two types of expenses: fixed and variable. The “fixed expenses” list must be expanded to incorporate expenses for utilities, food, transportation, medication, and other important expenditures. Things like recreation and holiday trip would be counted “variable” (a.k.a. optional).
As soon as you identify how much you’re spending and where, you can more readily come to an accurate estimate of how much rent you can actually afford. Following to the 30% rule in areas with high rent may be problematic. This may need altering some other costs to better afford your rent.
How to approach landlords or property managers
Surely, the amount you imagine you can afford to pay is only one-half of the story. When applying for a rental home, numerous property management companies and landlords may have different judgments about what signifies a suitable tenant. Even if you can demonstrate that you can afford the advertised rental rate, some property managers or landlords may be unwilling to offer you a lease for a variety of reasons.
Sometimes, the rental home you desire could already be leased to someone else despite your best efforts. It is imperative to stay positive and continue to manage or improve your financial situation. Never forget that not obtaining a specific rental home doesn’t necessarily signify that you’re not a strong candidate for another property. As long as you’re applying for rental homes within your affordability range, the perfect one will come along.
Are you searching to rent a new home in Colonie or somewhere close by? Real Property Management Capital Region is here to help! Check out our available listings, and don’t hesitate to contact us with any inquiries.
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.
