Finding your ideal apartment rental, whether moving out of a dorm or leaving your parent’s house, can be daunting without a bit of guidance. As a tenant-to-be, you’ll be taking on new tasks and responsibilities, and the process can seem overwhelming. Use this article as a step-by-step guide for renting your first apartment.
Step 1: Determine your budget
As you consider moving into an apartment, the first thing to look at is your budget. Paying rent month to month is not the only cost involved. It’s common for first-time apartment renters to overestimate how much rent they can afford. The U.S. Department of Housing and Urban Development (HUD) recommends that your rent not exceed 30% of your gross income.
This is only a broad guideline as in some areas of the U.S., particularly Los Angeles, San Francisco, or New York, this is not realistic, even for individuals with well-established careers.
You might be able to get around those issues by finding roommates and sticking close to your budget. If you can’t afford rent, it’s best to keep looking for an apartment that fits your budget.
To find out how much you can afford, determine the following:
- Location: Narrow down your neighborhood search. If your lifestyle revolves around restaurants, museums, theaters, or other local attractions, look for neighborhoods close to such amenities. If you rent in a suburb and commute some distance to work, you may actually pay more for parking and fuel than you would if you chose to live closer to work.
- Transportation: If you have a car, will you need to pay for parking space? Can you walk, bike, or ride public transit to work and do errands?
- Utilities/groceries: Utility costs can vary seasonally, so you’ll want to estimate an average over all seasons. Renters often pay separately for electricity, gas, internet, and cable. A general rule is to plan for $200 per month in utilities or 7% of your annual income. Groceries cost between $200–$250 a month per…