Generally, rental experts propose that you should be spending just 30% of your gross income on rent annually. 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. Naturally, this is quite simplistic regarding the method of understanding how much rent you can spare. There are frequently other expenses that must be considered.
For instance, if you have plenty of debt or have any type of large monthly payments that you cannot change or reduce, these expenses should be included in your calculations. Past that, your budget should incorporate a thorough classification 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 know how much you’re spending and you can more effortlessly come up with a realistic estimate of how much rent you can afford. In regions where rents are exorbitant, it may be difficult to stick to the 30% rule. This may mean to adjusting a few 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 searching for a rental home, various property management companies and landlords may have different ideas about what makes a desirable tenant. Even if you can show that you can afford the advertised rental rate, some property managers or landlords may still 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.
For the best result, do your best with the property manager or landlord and provide all requested information promptly and in full. It helps a lot to ensure that you appear punctually to all meetings and to dress nicely as well. These may look like simple things, but an excellent first impression could aid you to convince a property manager that you will be a responsible and conscientious tenant.
Certainly, regardless of your best efforts, occasionally the rental house you desire is bestowed to someone else. If that happens, try to stay positive and to accomplish what you can to maintain or improve your financial situation. You may not understand why the property manager or landlord didn’t select you, and it may not signify that you are not a well-qualified contender for another property. 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 so, please examine our available listings and contact us if you find something that piques your interest.