As a precedent, rental experts hint that you should be spending at most 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. Without a doubt, this is a somewhat stylized manner of finding out how much rent you can sustain. Often, other expenses are also urgent.
Imagine, if you have tons of debt or are paying off large monthly payments that you cannot change or reduce, these important expenses should be included in your calculations. In addition, your budget must include an itemized tally 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. After knowing how much you’re spending and where you can adjust to come up with a realistic estimate of how much rent you can actually afford. In localities where rents are lavish, it may be difficult to stick to the 30% rule. This might involve adjusting some of 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 requesting for a rental home, assorted property management companies and landlords may bear different ideas about the makings of a desirable tenant. Notwithstanding the fact that you can afford the advertised rental rate, many property managers or landlords might 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.
To get the best result, work hand in hand with the property manager or landlord and then provide all requested information promptly and in full. It only takes little effort to assure that you prioritize all appointments and to dress the part. These may seem unimpactful, but an exceptional first impression surely helps you impress a property manager and show that you will be a responsible and conscientious tenant.
By all means, even with your best efforts, once in a while, the rental house is rented to somebody else. Just stay positive and work to maintain or improve your financial situation. You may be perplexed why the property manager or landlord did not pick you, and it surely does not imply that you are not a capable renter for other properties. 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? Please do take a peek at our available listings and contact us if you find something that piques your interest.