It’s important to have a solid understanding of your financial situation and what you can afford to pay before you start looking for that perfect rental home. Here’s what expenses you can expect from leasing.
Experts generally suggest that your total cost for housing should be between 20 and 30% or less of your take-home income.
For example, if you take home $3,000 a month, you may be able to afford a monthly rent of between $600 and $900 per month, including utilities.
In addition to your first month’s rent, most landlords will require a security deposit of about one month’s rent upfront. It can be more depending on the market or the property. If you’ll be moving with a pet, be prepared to pay a pet deposit or a monthly fee.
Be aware of other potential costs that may come with renting, such as utilities and parking.
You’ll need to account for your current living expenses and all anticipated expenses. Take the time to write them out and compare it to your income before you sign that lease. It’s probably a good idea to factor in some financial reserves for life’s unexpected emergencies such as an illness or temporary job loss. You should also consider any future major expenses such as a down payment on a home, a wedding, or college tuition.
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