Most people use more than a 4th part of their income on rental properties. We have to rent an apartment while doing a job and for education purposes. Before renting an apartment, you should decide the budget for that. Over exceeding budget can increase your debt. Are you wondering, how much should I spend on rent? This guide will give you the budget tips for renting an apartment.
Rent percentage in income
Rent percentage should be upto 30% of the whole income. It is the maximum amount to be considered while making a budget for the room rent. If you have any running loan then 30% could be high enough. This time you have to control other expenses like daily transport, restaurant food and other not compulsory things. You can also control spending on travel.
If you start living in a neighborhood with good parks and outdoors then your travelling expense will automatically decrease. You can also change the location of the rental apartment and start living near your job location if the same rental price of apartment applies there.
Pro tips to lower your monthly rent
If your monthly rent is quite higher than 30% then you must start acting to lower this expense. Here are the few tips that you can apply according to your lifestyle.
If you are studying in a university, then you can share your room with other roommates. This will decrease your room rent. You can ask the apartment owner to make separate room agreements for all the partners so that you can save yourself from future problems due to delay in rent from other partners.
If your employer allows you to work remotely then you can save more bucks by saving daily transport for going to the office. Also, you can move to the suburb area of the city where you can get an apartment on rent at a lower price. This idea will help you even if you live with a full family.
There are many applications to calculate daily expenses available on Play Store and App Store. You can find a good application by checking the rating and installing it. Use an application for a month and calculate all of your expenses. Lower expense where you can do it. This practice can decrease your monthly expenses more than 5%. So if you can not do anything for lower monthly room rent then this tip will help you.
There are many apartment rental sites available on the internet. You can use sites like Aptamigo to check apartments in your area. Use a map widget on the website and check if an apartment with slightly lower rent is available in a nearby area or not. Add all the charge and maintenance cost while calculating monthly rent of an apartment. Shifting to a new location will decrease your monthly budget if you consider a long stay at one place.
We hope these tips will help you to lower monthly expenses on a rental apartment.