Not sure how much you can budget for rent? Usually the apartment community will specify certain income requirements so that you don’t get in over year head. But why don’t you take the initiative and create your own monthly budget so you have control over your life.
Listed below are plenty of tips that will help you find out what you can spend each month, and how properties determine what they are going to charge for rent on a monthly basis.
The Apartment Community Determines Rent by…
The apartment community will determine what they will charge for rent based upon the current and future outlook of market conditions. The owner or management company will look for comparables in the neighborhood to assist them with this specific figure. Price increases will usually come from recent upgrades, location, and other factors which will make their units more favorable than others around the area. If you notice that newer apartment complexes are being constructed in certain neighborhoods, this can mean that demand is increasing. With more demand, that can signal rent increases.
Many Apartments Want You to…
Now many apartments will feel more comfortable if you make around 3 to 3.5 times the monthly rent. So if the rent around is $1000, they will require that you make at least $3000 in order to qualify to live in the community. However, if you live in a highly competitive city, where there are a limited number of units, you may need to pay even more.
Set Up a Budget…
Regardless, you should have some sort of budget structure set up. You don’t need the apartment community to dictate what you can/should spend on monthly rent. Don’t worry so much about having to cut back. Think about this structure assisting you build up your financial wealth. You will feel better about yourself, and it will increase your self esteem knowing you have control over your finances.
Everyone’s budget should begin with your monthly income. After you know exactly what you have coming in each month, then you can figure out what you have to spend. This is really the beginnings of making a budget. But don’t think about maxing out your rental possibilities. It is perfectly acceptable to live in a community that doesn’t have all the bells and whistles. The more you can save, the better.
Now that you have your income, the goal here is to really limit your expenses each month so you have money to put away in savings too. Now you can start to see what you can spend on rent on a monthly basis.
There are many professionals that recommend that rent should be 25% to 35% of your income. That way you don’t get in over your head and you can make those monthly rent payments. So sit down, and figure out what your bringing in each month. Remember to account for taxes as well. Then you can see what you have to spend on rent and other expenses each month.
Henry Hernandez is a father, veteran and avid outdoorsman. Henry lives in Texas where he works with an online apartment finder http://www.houston1apartments.com/. Henry loves to connect through his favorite social media site, Google Plus.