Realizing how much rent you can afford is vital before starting your search for a rental home as a renter. Examining your household budget in detail is the most effective way to know exactly how much rent you can afford. It is possible to search for a rental home that is well-matched with your lifestyle and funds more easily by getting accurate income and expense numbers.
However, numerous property management companies have various types and variations of rental properties, so it is important to stay versatile and keep your options open during your rental home search.
Assess your monthly income and expenses
As a rule, as per rental experts, you should be spending no more than 30% of your gross income on rent each year. That is your gross income before taxes and other deductions, not your take-home salary. For instance, if you get $40,000 every year from all sources of income, your greatest maximum rent amount would be $1,000 per month.
Indeed, this is a somewhat simplified strategy for figuring out how much rent you can afford. There are frequently other expenses that must be factored in.
For example, if you have a lot of debt or make large monthly payments that are unavoidable, these expenses ought to be included in your calculations. Besides, your budget should be made up of a detailed list of two types of expenses: fixed and variable. Other necessary expenses, including food, transportation, medication, and utilities, should be incorporated into the “fixed expenses” category. Entertainment, vacation travel, and other similar actions would be included on the “variable” (a.k.a. optional) list.
Once you’ve known how much you’re spending and where, you can more easily come to a genuine estimate of how much rent you can actually afford. In areas with high rent, adhering to the 30% rule may pose difficulties. It may be essential to adjust other expenditures to better afford your rent.
How to approach landlords or property managers
It is apparent that the amount you assume you can afford to pay is only one component of the equation. When applying for a rental home, it is possible that property management companies and landlords may have distinct viewpoints on what makes a tenant attractive. Even though you can demonstrate that you can afford the advertised rental rate, some property managers or landlords may hesitate to offer you a lease for different causes.
No matter how diligent you are, there may be times when the rental home you desire is already leased to someone else. During these moments, it’s advisable to stay positive and continue to manage or improve your financial situation. Keep in mind that the failure to get the specific rental home doesn’t necessarily mean that you’re not a strong candidate for another property. Finding the perfect one is possible as long as you’re applying for rental homes within your affordability range.
Are you seeking a new rental home in Sandy Springs or the neighboring areas? Real Property Management Greenway can help! Learn about our available listings, and feel free to reach out if you have any queries.
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.
