How Much Rent Can I Afford?

If you’re new to renting or are in the process of looking for a new rental you may be wondering how much rent you can afford or what landlord/owners are looking for when they consider you as a potential tenant.

The general rule in this area, is the owners prefer your income be at least three times the amount of rent.
(ie: if rent is $2000/month, your total household monthly income would need to be $6000 or more)

Basically, it’s suggested that your monthly rent amount not exceed 33% of your total monthly income.
This allows for solid financial management and the owners/landlord will feel safer with you as a tenant if you’re not over-extending yourself.

See the chart here for approximate monthly rental amounts based on annual income.
rentalbudgetchart

Another important factor in moving is the move in costs.
Generally, first month, last month and one month security is required.
However, on some high end luxury rental homes, they may require first month and two months security deposit.

You ask “Why so much”?
The owners need to protect their investment.
Additionally, if you’re not financially able to pay the required move in costs, the owners tend to wonder how or if you you can afford the monthly rent and after all while you need a place to live the owners also need reliable renters.

Are you ready to find a rental?
Contact me, Tara Burner, Queen of Rentals and I’ll find the ideal place for you.

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