As a renter, understanding how much rent you can afford is important before you begin your rental home search. The ideal method to know exactly how much rent you can afford is by carefully examining your household budget. By acquiring accurate income and expense numbers, you can more surely search for a rental home that comfortably matches your lifestyle and earnings.
Nevertheless, different property management companies provide several kinds and variations of rental properties, so it’s good to stay flexible and keep your selections open during your rental home search.
Assess your monthly income and expenses
Usually, rental experts recommend that you should be spending no more than 30% of your gross income on rent yearly. That is your gross income before taxes and other deductions, not your take-home pay. For instance, if you make $40,000 per year from all sources of income, your perfect maximum rent amount is $1,000 per month.
Obviously, this is a somewhat oversimplified method of figuring out how much rent you can afford. There are frequently other expenses that need to be considered.
For instance, if you have a lot of debt or make large monthly payments that you cannot change or lessen, these expenses must be included in your calculations. Beyond that, your budget should contain a detailed list of two types of expenses: fixed and variable. Food, transportation, medicine, utilities, and other important fees must be added to the “secure expenses” category. Entertainment, vacation travel, and so on would go on the “variable” (a.k.a. optional) list.
After knowing how much you’re spending and where, you can more easily come to a truthful estimate of how much rent you can actually afford. Following to the 30% rule in areas with high rent may be hard. This may necessitate adjusting some other fees to better afford your rent.
How to approach landlords or property managers
Obviously, how much you believe you can afford to pay is only one-half of the equation. When applying for a rental home, different property management companies and landlords may have different concepts about what constitutes a desirable tenant. Even if you can demonstrate that you can afford the advertised rental rate, some property managers or landlords may be unsure whether to offer you a lease for several causes.
Despite your best efforts, there may be occurrences where the rental home you desire is leased to someone else. In these cases, you need to stay positive and continue to manage or improve your financial situation. Keep in mind that not getting a specific rental home doesn’t necessarily imply you’re not a strong candidate for another property. As long as you’re applying for rental homes within your affordability range, the appropriate one will come along.
Are you searching for a new rental home in Flushing or surrounding areas? Real Property Management New York Gold can assist you! Explore our available listings and don’t hesitate to reach out with any questions.
Originally Published on Jan 10, 2020
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