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House Hunting 101: How Much Rent Can I Afford?

Budget Planning for Your New Henrico County Rental SearchBeing a renter, it is critical to weigh how much rent you can bear preceding the start of 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 appropriating accurate income and expense numbers, you can confidently look for a rental home that suits both your chosen lifestyle and your paycheck. Still, different Henrico County property management companies search for diverse things, a nice way to look at it would be to stay discretionary during your rental home search.

Always bear in mind, rental experts point out that you should be spending nothing but 30% of your gross income on rent yearly. 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. Assuredly, this is a streamlined style to figuring out how much rent you can bear. There are always other expenses that have to be prioritized.

To illustrate, if you are nursing debt or are stuck in any kind of large monthly payments that you cannot change or reduce, these expenses should be included in your calculations. Apart from those, your budget should show an extensive 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. As soon as you know the numbers on your spending and where you can freely obtain a realistic estimate of how much rent you can actually afford. In neighborhoods where rents are at a premium, it may be difficult to stick to the 30% rule. You may need to compromise on some of your 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 asking for a rental home, property management companies and landlords could have different ideas about what embodies a desirable tenant. Despite the fact that that you can afford the advertised rental rate, a number of property managers or landlords could 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.

In order to attain the best result, get in on the act with the property manager or landlord; furthermore, provide all requested information promptly and in full. It’s never a bad idea to arrive promptly during all appointments and to look the part, as well. These may seem insignificant, but a lasting first impression could assure a property manager that you will be a responsible and conscientious tenant.

Naturally, notwithstanding your best efforts, sometimes the rental house you desire is bestowed to another. Try to stay positive and motivate yourself to maintain or improve your financial situation. You may be lost, not knowing why the property manager or landlord leased it to somebody else, and it may not indicate that you are an unworthy prospect 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 you are, then go ahead and 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.