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House Hunting 101: How Much Rent Can I Afford?

Budget Planning for Your New Amelia Island Rental SearchWhen you become a renter, you should be knowledgeable about how much rent you can shell out prior to beginning 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 setting accurate income and expense numbers, one can smoothly find a rental home that fits just right with both your chosen lifestyle and your paycheck. Howbeit, different Amelia Island property management companies scout for dissimilar things, it’s a good idea to keep your options open during your rental home search.

Rental experts have proved that you should be spending at the most 30% of your gross income on rent every twelve months. 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 super simplified way to grasp how much rent you can shell out. Other expenses need to be factored in.

Let’s say that you are tied to a debit or nursing large monthly payments that you cannot change or reduce; these urgent expenses should be included in your calculations. Besides that, your budget should show a comprehensive 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. After realizing how much you’re spending and where you can simply come to a realistic estimate of how much rent you can actually afford. In sectors where rents are pricey, it may be difficult to stick to the 30% rule. This can cause you to modify 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 requesting for a rental home, varied property management companies and landlords may have different ideas regarding what should be a desirable tenant. Regardless of showing that you can afford the advertised rental rate, many property managers or landlords may, after all, 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, do your share of work and be impartial with the property manager or landlord and also provide all requested information promptly and in full. It is important to make sure that you attend all the invitations and wear clothes that suit the occasion, either. These may seem irrelevant, but an excellent first impression helps you induce to a property manager that you are and will be a responsible and conscientious tenant.

Although you gave your best efforts, there are times when the rental house you want is leased to another. If that’s the case, hold your chin up and stay positive and strive to maintain or improve your financial situation. You may be stumped on why the property manager or landlord did not rent it to you; it does not mean that you are not suited 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 that’s the case, then check out our available listings or 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.