Renting your first apartment is exciting! Perhaps you’ve saved for months to get a place of your own and now it’s time to move. Before you start packing, it’s important to thoroughly understand your financial responsibilities before you sign the least. You will need to pay much more than the monthly rent. Here are some areas to budget for.
Monthly Rent
A basic rule is that your monthly rent should be 30% or less of your monthly take-home pay. That luxurious apartment may seem perfect, but if it consumes a considerable portion of your income, you may find your budget tightly stretched when it comes to groceries, gas, clothing, entertainment, and vehicle upkeep. It’s better to start modestly, and then build the earnings to move to that higher-priced apartment.
Utilities
Some apartment communities may pay a portion of the utilities, primarily water and trash. You will be responsible for electricity, gas, and cable/internet.
Insurance
Most property management companies require residents to carry renters insurance. If you don’t have it, they may automatically sign you up for their insurance and the cost will be added to your monthly rent. You will not have a say in the type of coverage you have. Ask your car insurance company if they also offer renter’s insurance. Most companies have both and you could save money if you bundle renters and car insurance with the same company.
Rent Increases
Be prepared for annual rent increases. The percentage increase will vary but don’t be surprised by annual increases. These increases can reflect property tax, upkeep, and other associated costs for running the property.
Living Expenses
When budgeting for renting an apartment, you’ll also need to factor in your other monthly expenses such as food, gas, car insurance, cell phone, car payments, student loans, pet care, etc. When planning, be realistic as to what you can comfortably afford. You don’t want to be strapped at the end of the month with no money to live on until your next paycheck.
With a little planning, and establishing a budget you can stick to, you’ll be able to afford a comfortable apartment and have enough money left over to enjoy living in your new home!
Explore a Vision Community Apartment
At Vision Communities, our goal is to provide an excellent living experience that fits in your budget! We have floor plans in any budget plan that provide your personal space and spacious common areas for you to hang out with your roommate and friends. Our spacious, studio, 1 bedroom, 2 bedroom, and 3 bedroom apartment layouts provide cozy space. Check out our luxurious apartment floorplans in one of our communities and enjoy life at the VC.
Schedule a tour today and see why Vision Communities is a great place to live.