Before starting looking for a place to rent, as a renter, you need to know how much rent you can afford. The perfect approach to identifying exactly how much rent you can afford is by thoroughly examining your household budget. By knowing the accurate income and expense numbers, you can search for a rental home that supports your budget and way of life with more confidence.
However, different property management companies serve various kinds and variations of rental properties, so you’ll need to stay flexible and keep the possibilities open during your rental home search.
Assess your monthly income and expenses
Most of the time, rental experts propose 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. This means that if you produce $40,000 annually from all sources of income, the suitable maximum rent amount is $1,000 per month.
Unquestionably, this is a somewhat simplified method for figuring out how much rent you can afford. As a rule, you need to think about other expenses as well.
For instance, if you have a lot of debt or make large monthly payments that you cannot alter or reduce, these expenses should be included in your calculations. Next, your budget should entail a detailed list of two types of expenses: fixed and variable. Food, transportation, medicine, utilities, and other necessary expenses should be added to the “fixed expenses” category. Entertainment, vacation travel, and so on would go on the “variable” (a.k.a. optional) list.
After determining how much you’re spending and where you can more easily come to a truthful estimate of how much rent you can actually afford. It might be hard to follow the 30% rule in areas with high rent. This could mean changing some other costs so you can better afford your rent.
How to approach landlords or property managers
Of course, how much you imagine 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 various theories about what represents an ideal 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 various reasons.
Irrespective of your best efforts, there may be cases where the rental home you desire is leased to someone else. When this happens, it’s vital to stay positive and continue to manage or improve your financial situation. Keep in mind that just because you didn’t get a particular rental home doesn’t necessarily imply that you’re not a strong candidate for another property. As long as you’re applying for rental homes within your affordability range, an excellent one will come along.
Want to rent a new house in Pocatello or a close area? You can get help from Real Property Management Pocatello. Take a look at our available listings and feel free to communicate with us if you have questions.
Originally Published on Jan 10, 2020
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.
