Before you begin looking for an apartment, it is important to figure out your finances first. Crunching the numbers, and figuring out how much rent you can afford is crucial to property managers. Being over budget can cause serious consequences to you as necessities can ultimately fly out the window.
In some cases, landlords ask for an annual income that is at least 40 times the monthly rent. So if you’re searching for an apartment that is about $3,000/month, your landlord will want an income that equals to about $120,000. More or less, some landlords are lenient than others. For example, if you’re looking for a $750/month apartment, they might only require double the income which means that you only have to earn $1500 per month. Regardless, speak to the property managers and see what their requirements are.
Take the 30% rule! Do not spend over 30% of your annual income on rent. You’ll be able to live comfortably when you generally live by this rule. Let’s take the $120,000 annual income again:
For a combined annual income of $32,000, the maximum monthly rent is $800. The math goes on. Nevertheless, finding out what makes you comfortable is what you’re aiming for!