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House Hunting 101: How Much Rent Can I Afford?

Budget Planning for Your New Theodore Rental SearchAs a renter, it is essential to be acquainted with the rent you can afford before starting your rental home search. The best way to know exactly how much rent you can afford is to start by taking a closer look at your household budget. By grasping accurate income and expense numbers, one can lessen the hassle that comes with searching for a rental home that meets both your chosen lifestyle and your paycheck. Even so, different Theodore property management companies search for distinct elements, being flexible and keeping your options open during your rental home search would be of great help.

Remember, rental experts have said that you should be spending solely 30% of your gross income on rent year by 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. Needless to say, this is a somewhat abstract means of figuring out how much rent you can spare. There are, oftentimes, many expenses that need attention.

Suppose that, if you have loads of debt or are in large monthly payments that you cannot change or reduce, the particular expenses should be included in your calculations. Another part is that your budget should incorporate a comprehensive record 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. In the event that you understand how much you’re spending and come to a realistic estimate of how much rent you can actually afford. In sectors where rents are unforgivingly high, it may be difficult to stick to the 30% rule — sometimes requiring adjustments in your other expenses in order to be able to better afford your rent.

Of course, how much you think you can afford to pay is only one half of the equation. When you apply for a rental home, other property management companies and landlords may have different ideas concerning what makes a desirable tenant. Even supposing that you can afford the advertised rental rate, a portion of property managers or landlords may 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 obtain the best result, be proactive and accurate with the property manager and/or landlord plus provide all requested information promptly and in full. Make it a habit to get to all appointments on time and to be confident too. These may seem minimal, but an excellent first impression can show a property manager that you are a responsible and conscientious tenant.

Regardless of your best efforts, from time to time, the rental house you want is leased to someone else. If this happens, force yourself to stay positive and aim to maintain or improve your financial situation. You may be baffled on why the property manager or landlord rented it to another, and it surely does not determine the outcome of your rental 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? Have a glance at our available listings and contact us when you find something that piques your interest.

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.

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