How Much Rent Can You Afford?
Find Out What You Can Spend Every Month on an Apartment Rental
Before you decide to rent an apartment or house, you first need to determine what you can pay every month, and whether the place is worth it.
Whether you’re looking at a renovated loft downtown or a contemporary townhouse in the suburbs, you need to figure out exactly what you can afford before you sign a lease.
Find Out How Much You Should Pay in Rent:
- Don’t spend more than 20% of your income on rent. If it’s more than that, you’ll have problems making the payment each month. For instance, if you make $2,000 a month you should pay no more than $400 in rent. If you’re having trouble finding a place that meets this criteria, simply expand your choices. Look for a house instead of an apartment where you mow your own lawn. There might not be amenities like a clubhouse, swimming pool or workout facility on site. But you’ll trade the common areas for more room and more privacy.
- Consider getting a roommate to share expenses. Say you find a two bedroom apartment close to work but a little outside your budget, think about sharing the space with a friend and splitting the rent. And after your next raise, you can part ways.
- Negotiate! If you can only afford $400 a month and you find a place you just can’t pass up that rents for $425, ask the landlord if he/she will lower the rent. That might be a pipe dream, but it’s certainly worth a try, especially if you are a desirable tenant. Make sure on your first visit, to dress professionally and be on your best behavior. Treat apartment hunting like a job interview. A potential landlord is likely to lose a lot more money by having to evict a bad tenant, than accepting less money from someone who pays on time and takes care of the place.
- Change locations. If you simply can’t find any decent apartments in your price range without driving an hour from work, ask for a transfer, or depending on your situation, look for another job. You’ll ultimately be happier and maintain a higher standard of living in a community that offers affordable rents. And remember, even though your salary might go up if you’re transferred, it might not be worth the higher cost of living in another city.
- Ask about the security deposit up front. Before you sign a lease, find out how much you’ll owe the first month. Sometimes a security deposit is as little as $200, other places will require you to put down first and last month’s rent. Make sure you have saved enough before you start apartment hunting.
The copyright of the article How Much Rent Can You Afford? in Consumer Education is owned by L. Marie Dubuque. Permission to republish How Much Rent Can You Afford? in print or online must be granted by the author in writing.
