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House Hunting 101: How Much Rent Can I Afford?

Budget Planning for Your New Richmond Rental SearchBeing a renter, it is vital to have a grasp on your budget, including rent, before kicking off 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 securing accurate income and expense numbers, you can easily find a rental home that caters to both your chosen lifestyle and your paycheck. Nonetheless, different Richmond property management companies inspect different elements; its always a good thing to be amenable and keep your choices open during your rental home search.

As a norm, rental experts always imply that you should be spending not over 30% of your gross income on rent per annum. 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. Most certainly, this is a basic procedure for calculating how much rent you can spare. There are a lot of other expenses that need not be forgotten.

Pretend that you are in a lot of debt or you are obligated to large monthly payments that you cannot change or reduce, these expenses should be included in your calculations. Moreover, your budget should indicate a precise 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. Immediately after familiarizing how much you’re spending and where you can competently come to a realistic estimate of how much rent you can actually afford. In cities where rents are excessive, it may be difficult to stick to the 30% rule. You should be ready to make some adjustments in some of your expenses so you can better afford your rent.

Of course, how much you think you can afford to pay is only one half of the equation. When you request a rental home, various property management companies, as well as landlords, may have different ideas with reference to what constitutes a desirable tenant. Granted that you are able to show that you can afford the advertised rental rate, some property managers or landlords 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 bring about the best result, cooperate, and be honest with the property manager or landlord and provide all requested information promptly and in full. It doesn’t take much to be punctual to all interviews and to dress for the occasion, either. These may seem unnoticeable, but a superb first impression certainly helps you prove to a property manager that indeed, you are a responsible and conscientious tenant.

Despite your best efforts, at times, the rental house you need is leased to another. If this occurs, Keep on and stay positive and work hard to maintain or improve your financial situation. You might not know the reason the property manager or landlord gave it to somebody else, and it most certainly does not erase the fact that you are still a possible lessee 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 yes, you can 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.