You can use this rent calculator to find out what would be an affordable monthly rent for you. The calculator gives its suggestions by taking into account your income and the monthly debts.
Finding a rental home can be an easy sailing or it can be terribly difficult and what kind of experience you are going to have depends on quite a few factors. One major factor is location. Finding your rental home in rural areas can be easier and all you need is to take a drive around the neighborhood and search for those “For Rent” signboards. You can also go searching for apartment complexes. Once you find a few options, you can schedule a visit or may get in touch with the leasing office. However, if you're looking for a place to rent in a big metropolitan area, finding a home can be as hard as it can get. Factors like local policy or population density may be responsible for this. As a renter, you will have to scan through lots of ads and internet sites such as Craigslist. Alternately, you can choose to hire an agency for the same and make it all easier for yourself.
For finding affordability of a rental, there can be a lot of different options. In fact, affordability can differ from person to person and, therefore, it is better to use a rent calculator to find out what's affordable for you depending on your income and expenses. For some 25% front-end debt-to-income ratio would be affordable while for others it would be 1/3rd of their income. Most people, however, only do some ballpark calculations within their heads to decide what's affordable for them.
Keep it in mind that rental cost is just one of the many things that you need to consider for determining your financial affordability of a rental home. Don't forget to take into account your insurance, emergency funds and other miscellaneous expenses that you have to bear each month. So, it is always advisable to use a good rent calculator for determining your affordability by taking into account all contributing variables.
There can be different options that can be tried for cutting down your rental costs. Let's take a look at few of them.
1 - When shopping for an apartment, do your research, take ample time for making a final decision, and avoid getting bad deals.
2 - Find areas in which the rents are low. Everyone can't afford living in condos located in posh areas.
3 - Always negotiate on rent as well as lease terms.
4 - Live with roommates if at all possible. You can be able to save as high as 30% of your total rental costs by choosing to live in a shared place.
5 - Negotiate with the landlords as they might allow for maintenance work while agreeing on low monthly rent.
It is a very simple rent calculator that you can use for determining affordability of a rental place where you want to live. Only a couple of input values are required by the rent calculator to perform the calculations. First of all, you have to provide your yearly pre-tax income. Consider your income coming from all the sources. Next, you have to enter the monthly debt on you including your student/car loan, credit cards and any other similar stuff.
Once you have entered these details in the designated fields, just hit the calculate button and the rent calculator will tell you what is an affordable monthly rent for you. Besides, it also gives a recommendation on a reasonable limit under which you should try to keep your monthly rent.
So, use this calculator, find out what you can afford, and then start your hunt for a rental home within that limit to avoid any issues later on.