Finding the Best Rental for your Budget
âÂ?¢Reasons to Rent – To rent, or not to rent? If that is the question you are facing, check out ApartmentStores.com’s reasons to rent. Prepare yourself to make an informed decision. You’ll understand the benefits and advantages of renting, read why many Americans are choosing this option instead of traditional home-ownership, and decide that renting may be the best option for you.
âÂ?¢Budgeting and Expenses – Once you’ve decided to look for an apartment, the first step is to get your finances in order. Estimate your expenses and determine your budget to figure out how much apartment you can afford, what it costs to move, and how to continue being able to afford your apartment.
âÂ?¢Apartment Hunting – You’re ready to find your ideal home. Before you start your search, review our Apartment Hunting Guide for tips and guidelines to follow for a stress-free search. Our helpful information will get you ready to pound the pavement.
âÂ?¢A Lease Primer – When you’ve found your ideal place, get familiar with important lease information and understand the process before signing anything. ApartmentStores.com’s Lease Primer will give you a base of knowledge about the process and provide specific things to look for in your new lease.
âÂ?¢Leaving the Old Apartment – Don’t forget to plan your departure from your current place using our helpful planner. Follow this valuable advice for a smooth transition that doesn’t burn bridges. In your quest for an new home, don’t overlook the importance of leaving your old home properly.
Reasons To Rent
There are circumstances when renting can be a more attractive housing option than ownership, and such a view is being voiced more and more frequently by Americans. As our culture’s ideal shifts from the traditional “American Dream” to a more customized and personal experience, many are finding that renting is the most appropriate lifestyle option. Why?
Flexibility
Let’s face it, we live in a different society than the one our parents did. How many people do you know who look forward to graduating in order to find a job with a company where they will work until retirement? According to the Bureau of Labor Statistics, the average American changes jobs an average of nine times before the age of 34. Not being tied to a thirty-year mortgage certainly opens up the options for career/lifestyle changers. Furthermore, a study at the University of Chicago reports that Households will move further away from the family-structure model of a stay-at-home mother, working father, and children. Change is the only constant, and renting meets the needs of a changing culture better than owning a home.
Less Risk
In a period of economic uncertainty such as the one we live in, the motivation to rent is stronger, and for some, the obvious choice. Renting is a more undemanding and less risky financial transaction than owning. The costs of selling a home are considerable, and the risk of unforeseen moves greatly increases owners’ costs.
Lower Costs
The costs of renting a home are generally less than the monthly expenses of owning the same home. Aside from the obvious appeal, consider the following benefits:
�Renting can relieve the pressure to earn a large income or require more than one income.
âÂ?¢Renting can free up “down payment” savings for other investments in different areas. In fact, when invested properly, these savings (by renting) can make it possible to meet several other financial goals.
Free Time
With Americans facing the ever-increasing struggle between work and life activities, there is an appeal for freedom from homeowner related responsibilities. With relatively limited free time and greater accessibility to leisure pursuits, many opt for playing – not working on the house. Some have time for both, but when forced to make a choice, many are choosing to spend more time living their lives and less time repairing and maintaining properties.
Simplify
Simplify your life, simplify our world. Consume less. As John O. Andersen states in his Case for Renting, “Basically, we do not have anywhere to put the stuff.” He supposes that if his family had more space, they’d buy more stuff to fill it. His theory is that home ownership is conducive to accumulation of material items and consumerism. It makes sense to add the interesting point that apartment communities use land more efficiently and help prevent sprawl. Not to mention the accommodation of overpopulated communities.
Renting offers specific benefits to people who are in transition periods such as changing careers or going back to school. It also offers specific benefits to those who have time-consuming hobbies or major interests outside of the real of the “homeowner-related activities.” Most importantly, renting offers the broader advantages of flexibility, less financial risk, savings, more free time, simplification, and most importantly – a sense of freedom.
Budgeting and Expenses
Whether it’s for the long term or just temporary, you’ve made the decision to rent. The first step is to get your financial house in order. Evaluate your income and spending priorities to determine what percentage of your monthly income will be spent on housing. This will indicate a price range for you so you’ll know where to look when you begin apartment hunting. It is important to set up your budget and establish good spending habits before you start the moving process. You will need to save at least three month’s rent in order to pay your total move-in cost, which will include your first month’s rent, deposit, and so on. It’s not a bad idea to save an additional month’s rent so you have something to fall back on if you go over your budget one month.
How much apartment can I afford?
You want what every apartment renter wants: the most comfortable surroundings you can get for the lowest possible monthly rent. Some of today’s newly constructed apartment communities have taken luxury to an entirely new level. Some complexes have gas fireplaces, TV monitors by the front door, drive-through mail service, and office equipment for their tenants, among other creature comforts.
âÂ?¢Priorities: Every renter has to consider the importance of amenities like these and others. Are they important enough to you to merit a rent increase of perhaps $200 more than the rent you would pay at a more modest complex? While some of us consider an apartment as just a place to hang one’s hat, others place a premium on home surroundings. Perhaps location is the key for you; rentals in prime locations can also be more costly. Set your priorities to determine whether you want to spend more of your hard-earned dollar living in comfort, luxury and convenience, or whether you’d rather save it for other pursuits.
âÂ?¢Earnings: One of the key factors of how much rent you can afford has to do with your monthly income. One suggestion, provided by Metropolitan Life Insurance Company, is to spend no more than 25 percent of your monthly gross income on your rent. For example, if your annual salary is $30,000 per year, or $2,500 per month, you shouldn’t plan to spend more than $625 per month on rent. It is important to remember that the extra money you allocate for rent in a slightly more upscale complex means less money for your other expenses – utilities, loan payments, entertainment, food, and most important, savings.
Ann Salary Monthly Affordable Rent Splurge on Rent
$20,000 $1667 $417 $500
$40,000 $3333 $833 $1000
$60,000 $5000 $1250 $1500
Moving Expenses
First-time apartment renters share one thing in common: surprise at just how many hidden expenses they encounter. Even veteran renters can be caught off guard by the costs associated with moving. In order to be well-prepared and financially ready for your move, review this brief run down of some of the moving costs you may come across:
âÂ?¢Application and Credit Check Fees – These can range from $10 to $35. To check your credit before your landlord does, refer to our credit report section.
âÂ?¢Total Move-in Cost – This is what you’ll pay to your new landlord. The expense generally includes first month’s rent, Security Deposit, Pet Deposit, other deposits, and sometimes last month’s rent. Refer to the Lease Section for more on how to determine the total move-in cost.
âÂ?¢Moving and Truck Rental – How will you move your household items? Will you hire professional movers, move yourself, or something in between? You can estimate your expenses and even set up a move using a mover or rental truck by visiting our moving section.
âÂ?¢Moving Supplies – Consider that you will need items such as moving boxes, crates, packing tape, packing supplies, moving blankets, and so on to protect your things during their transport. Moving supplies and boxes are available at a discount through ApartmentStores.com.
âÂ?¢Long Distance Moves – There’s a whole different set of costs associated with these types of moves. Consider storage costs, vehicle shipping costs, gas mileage, lodging costs for members of the household and so on. You can get an estimate for a long distance move, for storage or explore other moving solutions by visiting our moving section.
âÂ?¢Utilities – Your rent will often include sewer, water, trash, and pest control. Gas and electricity are almost always paid separately by the tenant. Don’t forget about telephone, cable and high speed internet charges.
How do I continue to be able to afford my apartment?
Once you’ve moved in, you should continue to follow your budget. If you feel you need to save even more money, there are other ways to cut back. Consider spending less on food, transportation, and entertainment. This doesn’t mean you have to starve while you sit at home doing nothing, but there are easy ways to save money. Consider the following options:
�Pay yourself first: request regular paycheck deductions to go directly into your savings account.
�Find out where it goes: keep a money diary for a few days and look for opportunities to cut back.
âÂ?¢Read your supermarket’s sales flyer to determine which buys will allow you to save the most.
�Pack a lunch instead of eating out every day.
�Look for free events and activities in your area to substitute more costly forms of entertainment.
Apartment Hunting
You’ve decided that renting’s for you, you want to move, you’ve created a budget and saved enough money to cover your basic moving expenses. Now you’re ready to move on to the search. This is where many people get frustrated, stressed-out and discouraged. With ApartmentStores.com’s top ten Apartment Hunting tips, your search can be more organized and less stressed.
1. Make a shopping list. Are you looking for hardwood floors, dishwasher, washer/dryer, fireplace etc.? You may not find everything but it doesn’t hurt to set priorities. Keep in mind factors such as neighborhood/location and your price range.
2. Be prepared. Give yourself the edge over the next renter by familiarizing yourself with the documents/information Landlords request and having these with you. Landlords will be impressed by your organization and preparedness. You may also save yourself the application/credit check fee. Collect the following information to present to landlords/leasing agents:
– Credit check.
– Resume.
– Pay stubs/tax returns.
3. Get Excited! Get yourself ready for action. You will be making dozens of phone calls and leaving many messages. You should keep a log of these communications to stay organized. If your messages aren’t returned the next day, you should call again. You should be persistent, but friendly and respectful. Remember to stay focused and positive.
4. Cover your bases. Many landlords will want to verify your references. Phone ahead to alert possible references, including your former landlord, that they may receive a call.
5. Dress for Success. Dress and groom as though you are going to a job interview. In many respects it is the same. Landlords of really good units usually have their pick of several applicants. They are looking for:
� Someone both able and responsible enough to pay rent on time.
� People who will treat them and their property with care and respect.
� Quiet tenants who will not be disturbing to other tenant or neighbors.
6. Stick to Daylight. Try to see the units in the daytime. You’ll want to know how much natural light an apartment gets. It’s helpful to see what shape the place is in and whether more work is needed to make it habitable.
7. Be Thorough. Do a careful walk-through of any unit you’re seriously considering. The best time to ask about repairs and improvements is before you commit. Attach a list of any damage to the lease and have it initialed by your landlord so you’re not held responsible later. Make sure to ask questions:
âÂ?¢How’s the water pressure?
�How many electrical outlets and where are they placed?
�How big is the water heater?
�Is there enough closet space or will you need extra storage?
8. Meet Your Neighbors. Will you live above or below someone; do you share walls? Knock on doors and introduce yourself. Find out if neighbors are friendly, how they feel about noise and what they like about the neighborhood.
9. Does it Measure Up? Take measurements of your larger furnishings, and take along a tape measure when you go view apartments. Take measurements to see how your things will fitâÂ?¦or what things you’ll need to get rid of and then buy.
10. Visit Many Places. Try to view as many available rentals as possible, so you’ll have a good idea of how much apartment your money buys. Make sure to compare your options closely, and be prepared to act quickly when you find something you like. It’s helpful to carry your checkbook with you, so you can be ready to offer a deposit.
