Prior to starting your rental property search, it is advisable for renters to identify how much rent they can afford. To precisely determine how much rent you can afford, it is important to thoroughly examine your household budget. By acquiring accurate income and expense numbers, you may boost your confidence in searching for a rental home that aligns well with your living conditions and funds.
Nevertheless, numerous property management companies have a wide range of rental properties, hence it is recommended to ensure adaptability and keep your choices open during your rental home search.
Assess your monthly income and expenses
On the whole, rental experts recommend that you need to be spending no more than 30% of your gross income on rent annually. That represents your gross income before taxes and other deductions, not your take-home pay. If you earn $40,000 per year from all sources of income, the recommended maximum rent amount would be $1,000 per month.
Obviously, this is really unsophisticated way to figuring out how much rent you can afford. In addition, there are typically other expenses that must be considered.
For instance, if you have a substantial amount of debt or make large monthly payments that are outside your control or cannot be reduced, these expenses should be included in your calculations. Besides, your budget should incorporate a detailed list of two types of expenses: fixed and variable. It is advisable to include food, transportation, medicine, utilities, and other necessary expenditures in the “fixed expenses” group. The categories of entertainment, vacation travel, and similar other activities would be arranged as a “variable” (a.k.a. optional) list.
By being aware of how much you’re spending and where you can more easily come to a truthful estimate of how much rent you can actually afford. Adhering to the 30% rule in areas with high rent can deliver difficulties. Adjusting some other expenditures may be needed to better afford your rent.
How to approach landlords or property managers
Naturally, how much you assume you can afford to pay is just one aspect of the situation. When applying for a rental home, various property management companies and landlords may have various requirements regarding the criteria for a potential tenant. Although you can demonstrate that you can afford the advertised rental rate, some property managers or landlords may still have reservations about offering you a lease for different factors.
Despite everything you’ve done, there may be instances when the rental home you desire is already leased to someone else. When faced with such situations, it is best to stay positive and continue to manage or improve your financial situation. Always remember that just because you fail to secure a certain rental home, it doesn’t mean you are not a strong candidate for another property. As long as you’re applying for rental homes within your affordability range, the ideal one will come to you.
Are you now searching for a new rental property in Plant City or nearby? Real Property Management Freedom is here to help you! Learn about our available listings, and do not hesitate to reach out to us if you have any inquiries.
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.
