As a renter, before initiating your search for a rental home, it is imperative to ascertain how much rent you can afford. The greatest approach to see precisely how much rent you can afford is by meticulously examining your household budget. Searching for a rental home that is affordable for your standard of living and budget can be a lot simpler if you have accurate income and expense numbers.
On the other hand, different property management companies propose numerous kinds and variants of rental properties, so it’s prudent to maintain an open mind and be adaptable during your rental home search.
Assess your monthly income and expenses
Generally, as said by rental experts, you must be spending no more than 30% of your gross income on rent per year. That is your gross income before taxes and other deductions, not your take-home pay. In other words, if you generate $40,000 per year from all sources of income, your suitable maximum rent amount is $1,000 per month.
Undeniably, this is a very basic way to figure out how much rent you can afford. There are often other expenses that need to be taken into consideration.
For example, if you have a lot of debt or make large monthly payments that you cannot adjust or reduce, these expenses ought to be included in your calculations. Besides, your budget should require a detailed list of two types of expenses: fixed and variable. Include in the “fixed expenses” group things like food, transportation, medicine, utilities, and any other important expenses. Entertainment, vacation travel, and so forth would go on the “variable” (which means they are optional).
Once you’ve recognized how much you’re spending and where, you can more easily come to an exact estimate of how much rent you can actually afford. It could be difficult to adhere to the 30% rule in areas with high rent. This may necessitate adjusting some other expenses 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, several property management companies and landlords may have different concepts about what signifies a desirable tenant. Even if you can demonstrate that you can afford the advertised rental rate, some property managers or landlords may hesitate to offer you a lease for numerous reasons.
Notwithstanding your level of diligence, there may arise occasions when the rental home you desire is already leased to someone else. Under such conditions, you have to stay positive and continue to manage or improve your financial situation. Remember that the inability to obtain a certain rental home is not conclusive proof that you’re not a strong candidate for other opportunities. The ideal one will be found as long as you’re applying for rental homes within your affordability range.
Is Paradise Valley or the adjacent vicinity the location where you are looking for a new rental property? Real Property Management Exclusive can assist you! To obtain additional information, kindly explore our available listings.
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.
