In the world of rentals, there are so many different questions we have to ask ourselves. One of those questions, and arguably the biggest one, is how much we can and want to pay for an apartment. You never want to stretch your financial limits and be in trouble if you end up losing your job or taking a surprise pay cut, but you also probably don’t want to go for the cheapest possible rent due to standard of living. Extra cheap locations are often too small or are barely habitable for a variety of reasons, which can be downright dangerous for those living there.
Most financial experts will agree that your rent payments should make up about 30 percent of your income. This is seen as a safe balance between your housing costs and other expenses. While this isn’t always going to work out due to a number of possible factors, it is at least a solid place to start for your budget. It also gives you a good amount of perspective on whether or not a certain price is too good to be true as well. For example, if an apartment would only cost you 20 percent of your budget while the rest of the places in the area would cost you the full 30 and there isn’t an obvious reason as to why, then you may want to reconsider instead of just jumping at the cheapest option.
It is also always a good idea to check around at other local apartments and see how much they are renting for. You never know if there is one specific area that costs more than the others around it, and depending on your financial situation you either want to gravitate there or avoid it. It also gives you a good idea whether or not you're actually getting a good deal on your rent payments.
At the end of the day, it is up to you to decide how much you should be paying for rent. Some landlords require a minimum income to prove that you can afford the apartment, so that is something you need to keep in mind when you look for a new place to live. If you are ever curious about how much you should pay, give Talley a call and see what we have to offer. You never know, you might just find the perfect place within your income level!