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House Hunting 101: How Much Rent Can I Afford?

Budget Planning for Your New Cranston Rental SearchAs a renter, it is a must to realize how much rent you can allow yourself prior to 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 procuring accurate income and expense numbers, you can be confident with your search for a rental home that is best both for your chosen lifestyle and your paycheck. Still, different Cranston property management companies search for contrasting things, so it’s good to be amenable and keep your choices open during your rental home search.

Rental experts warn that you should be spending at a maximum of 30% of your gross income on rent each 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. Obviously, this is a basic concept in calculating how much rent you can manage. There are sometimes other expenses that need to be kept in mind.

For instance, if you are still paying a debt or juggling large monthly payments that you cannot change or reduce, these mentioned expenses should be included in your calculations. Moreover, your budget should contain a detailed manifest 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. When you get an idea of how much you’re spending and where you can more quickly come to a realistic estimate of how much rent you can actually afford. In localities where rents are costly, it may be difficult to stick to the 30% rule. This may demand to compromise your 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 asking for a rental home, differing property management companies and landlords might have different ideas regarding the qualities of a desirable tenant. Even though you are able to show that you could afford the advertised rental rate, many property managers or landlords may even 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 acquire the best result, be a partner to the property manager or landlord and also provide all requested information promptly and in full. It is always a good thing to be spic and span. Showing them a good first impression could help you convince a property manager that you are a responsible and conscientious tenant.

Even though you have made your best efforts, there are situations where the rental house you want is leased to another. If this arises, Always stay positive and continue to maintain or improve your financial situation. You may wonder why the property manager or landlord didn’t lease it to you, and it does not mean that you are not a suited renter 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 take a look at 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.