Most of the time, rental experts advise that you should be spending not more than 30% of your gross income on rent every year. 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. Certainly, this is a pretty basic idea when identifying how much rent you can bear. There are generally other expenses that must be taken into consideration.
For instance, if you have a lot of debt or have any type of large monthly payments that you cannot change or reduce, these expenses should be included in your calculations. Besides that, your budget should constitute a comprehensive list 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. Once you understand how much you’re spending and where you can more comfortably come to a realistic estimate of how much rent you can actually afford. In domains where rents are very high, it may be difficult to stick to the 30% rule. This may entail modifying some of your other expenses in order 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, other property management companies and landlords may have different ideas about what makes a desirable tenant. Even if you are able to determine 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 share to be honest with the property manager or landlord and provide all requested information promptly and in full. It doesn’t hurt to ensure that you arrive on the dot to all meetings and to look smart, as well. These may look like little things, but an excellent first impression could help you motivate a property manager that you will be a responsible and conscientious tenant.
Apparently, even with your best efforts, there are times that the rental house you want is offered to someone else. If that occurs, try to stay positive and to do what you can to maintain or improve your financial situation. You may not discern why the property manager or landlord didn’t pick you, and it may not denote that you are not a perfect candidate 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 check out our available listings and contact us if you find something that piques your interest.