Learn how to figure out how much you should be spending on rent.
When searching for a new apartment, monthly rent is one of the most crucial factors in deciding if the place is right for you. You may think you can spend a decent amount of your paycheck, but when you factor in utilities, bills, and other necessities you spend your hard earned money on each month, it can be difficult to know how much rent you can afford. Continue reading for a few tips and online tools to use to have a better understanding of how much you should be spending on rent.
Gross vs. Net Income
When looking at your paycheck, it’s important to know the difference between gross income and net income. Your gross income represents your entire working wage, but the net income is how much money you get after taxes and other deductions. You should be able to view both your gross and net income to see how much money is taken out versus the actual value of your paycheck. The difference is important because landlords will often look at your gross income when approving apartment applications. However, you should use your net income to figure out how much rent you can afford.
Splitting Rent With A Roommate
If you are living with a roommate or significant other, rent can get a little more complicated. Some roommates are happy with splitting the rent evenly, which makes it very easy for you and your landlord to keep track of rent. However, if one person makes a lot more money or has a much bigger room, you may decide to split the rent differently. How you decide to pay rent is completely up to you and your roommate, but remember that a good rule of thumb is that you should spend no more than 30% of your net income on rent.
Online Rent Calculators
If you need help with calculating how much rent you can afford, there are many rent calculators online that are free and easy to use. The Zillow Rent Affordability Calculator is great because it allows you to include the total of other monthly payments, such as student loans, car insurance, etc, and have a better understanding of how much rent you can afford to live comfortably and pay other bills.
Let Us Be Your Apartment Home!
Whether you need your very first apartment home or are relocating to the area, Apartments of Harborside Village would love to be your dream apartment home. Looking for beautiful waterfront apartments in Joppa, Maryland? Let us show you one of our spacious and affordable apartments at the Apartments of Harborside Village. To learn more about our apartment options, visit us online, give us a call at 410-679-1130, or email us. For a peek into what it’s like to live in our community, follow us on Facebook, Twitter, Pinterest, Google+, and YouTube!