As a prerequisite, rental experts propose that you should be spending but 30% of your gross income on rent yearlong. That is your gross income or your income before taxes and other deductions, not your take-home pay. So, for example, if you make $40,000 per year from all sources of income, your ideal maximum rent amount is $1,000 per month. Absolutely, this is a reduced approach to knowing how much rent you can afford. There are always other expenses that should also be addressed.
Case in point, if you are in tons of debt or have to pay off large monthly payments that you cannot change or reduce, these particular expenses should be included in your calculations. In addition to that, your budget must contain a complete tally of two types of expenses: fixed and variable. Food, transportation, medicine, utilities, and other necessary expenses should be added up in the “fixed expenses” category. Entertainment, vacation travel, and so on would go on the “variable” (a.k.a. optional) list. As soon as you learn, you’re spending patterns and where you can easily get to a realistic estimate of how much rent you can actually afford. In places where rents are very extravagant, it may be difficult to stick to the 30% rule. This could cause adjustments in some of your other expenses to better afford your rent.
Of course, how much you think you can afford to pay is only one half of the equation. When inquiring for a rental home, various property management companies, as well as landlords, could have different ideas about what makes up a desirable tenant. Against you being able to exhibit that you can afford the advertised rental rate, a number of property managers or landlords may account for all that hesitate to offer you a lease for other reasons. Qualification criteria may include things such as past credit history, and whether or not you own pets.
To bring about the best result, be straightforward with the property manager or landlord, and on top of that, provide all requested information promptly and in full. Always make sure that you arrive early for all consultations and not be underdressed. Small things make a good first impression and should assist you in enticing the property manager that you can be a responsible and conscientious tenant.
Even with all the best efforts, sometimes the rental house you aim for is awarded to another. If that is the reality, keep your head high and stay positive and go all out to maintain or improve your financial situation. You may be clueless about why the property manager or landlord didn’t pick you, and it most likely does not determine that you are not a favorite for another rental home. As long as you are applying for rental homes that fall within your range of affordability, the right one for you should come along soon.
Are you in the market for a new rental home? If you are, don’t hesitate to check out our available listings and contact us when you find something that piques your interest.