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House Hunting 101: How Much Rent Can I Afford?

Budget Planning for Your New Jerome Rental SearchAs a renter, it is fundamental to grasp how much rent you can provide before you launch 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 getting accurate income and expense numbers, you can more intently probe for a rental home that falls well within both your chosen lifestyle and your paycheck. However, different Jerome property management companies look for other things, so it’s you ought to remain adaptable and keep your options open throughout your rental home search.

Needless to say, rental experts denote that you should be spending no more than 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. This is a reasonably generalized methodology in discovering how much rent you can afford. There are usually other expenses that must be taken into account.

For instance, if you have lots of debt or have any sort of large monthly payments that you cannot change or reduce, these expenses should be included in your calculations. On top of that, your budget must include a specific checklist 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’ve realized how much you’re spending, you can more conveniently come to a realistic estimate of how much rent you can afford. In cities where rents are very pricey, it may be difficult to stick to the 30% rule. This may compel changing certain other expenses just to better afford your rent.

Of course, how much you think you can afford to pay is only one half of the equation. When seeking for a rental home, many property management companies and landlords may have different ideas on what is a desirable tenant. Even if you can 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 part and provide the property manager or landlord and provide all requested information promptly and in full. It doesn’t hurt to make sure that you arrive early to all meetings and to dress up a little, too. These may appear like minor things, but a nice first impression could help you influence a property manager that you will be a responsible and conscientious tenant.

Regardless of your best efforts, there are instances wherein the rental house you want is given to another person. If that happens, try to stay positive and to do what you can to maintain or improve your financial situation. You may not comprehend why the property manager or landlord didn’t select you, and it may not mean that you are not a well-qualified 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.

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.