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House Hunting 101: How Much Rent Can I Afford?

Budget Planning for Your New Albuquerque Rental SearchAs a renter, you should be aware of how much rent you can allow before embarking on your rental home search. The best way to know exactly how much rent you can afford is to start by taking a closer look at your household budget. Acquiring accurate income and expense numbers can help you search for a rental home that meets both your chosen lifestyle and your paycheck. With that out of the way, different Albuquerque property management companies search for distinctive things, staying flexible, and keeping your options open during your rental home search is the way to go.

Rental experts say that you should be spending nothing over 30% of your gross income on rent come year-end. That is your gross income or your income before taxes and other deductions, not your take-home pay. So, for example, if you make $40,000 per year from all sources of income, your ideal maximum rent amount is $1,000 per month. Without a doubt, this is a somewhat basic strategy for figuring out how much rent you can have the means for. There are usually other expenses that complicate the situation.

To show you what I mean, if you still have debt or are engaged in any kind of large monthly payments that you cannot change or reduce, the above-mentioned expenses should be included in your calculations. Aside from that, your budget must have an elaborated table of two types of expenses: fixed and variable. Food, transportation, medicine, utilities, and other necessary expenses should be added up in the “fixed expenses” category. Entertainment, vacation travel, and so on would go on the “variable” (a.k.a. optional) list. Right after you grasp how much you’re spending and where you can more conveniently come to a realistic estimate of how much rent you can actually afford. In zones where rents are upscaled, it may be difficult to stick to the 30% rule. This may push you to save on other expenses just so you can better afford your rent.

Of course, how much you think you can afford to pay is only one half of the equation. When you apply for a rental home, different property management companies and landlords might have different ideas about what personifies a desirable tenant. Even with you proving that you can afford the advertised rental rate, quite many property managers or landlords might nevertheless hesitate to offer you a lease for other reasons. Qualification criteria may include things such as past credit history, and whether or not you own pets.

If you want the best result, be a participant, and be truthful with the property manager or landlord, as well as provide all requested information promptly and in full. Be always on time in meetings and always look sharp. These are little details, but a favorable first impression aids you in convincing a property manager that is a serious, responsible, and conscientious tenant.

Surely, against all your best efforts, every so often the rental house is rented to somebody else. Try to stay positive and to do what you can to maintain or improve your financial situation. You may be discouraged on why the property manager or landlord gave it to another, and it does not deny the fact that you are a possible renter for another property. As long as you are applying for rental homes that fall within your range of affordability, the right one for you should come along soon.

Are you in the market for a new rental home? Here are some of our available listings and contact us when you find something that piques your interest.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.