Renting a Place to Stay? Here's What You Need to Know
Budgeting for your first apartment can be pretty intimidating, especially, when you just started managing your money. Moving out is not as easy as planning a weekend vacation. There are a number of factors that you need to consider to ensure that you are fully prepared to take this huge step.
Here is what you need to know about renting a place to stay:
This is something that not a lot of people talk about, and to be honest; this is just as important as figuring out how much you can afford in rent. It can be a pretty, hefty price of what you have to pay in upfront costs like, administration fees, a pet deposit, renter's insurance, security deposit. Remember that your budget is going to fluctuate depending on your income and your expenses, but after a few months have passed; you'll learn how to navigate this. Just a little side note; if you don't have savings, then make sure to give yourself some wiggle room and put some money aside in case of any emergencies. You can put away, maybe, 5 to 10% of your paycheck in a savings account, just for this.
It's highly advisable to research the area you want to live in and see what the average rent is, so that way you don't get taken advantage of and pay more than what you should. Do your own research and make sure that whatever the landlord is asking for, is reasonable for that area. Just a little FYI, the closer you are to the city; the more expensive rent will be, so choose wisely.
It's also very important to check what amenities they have while you're on an apartment hunting. Does it come with a parking space, a washer/dryer, or a gym? All of these amenities may increase the cost of rent for you. Ideally, you want to get a place where all utilities are included, so that way you can predict how much you're going to pay in rent easier.
Budgeting for Commercial Leases
It's important to ask whether the landlord has invested in any leased property. A popular type of property investment is the nnn properties that has shifted all of the payment responsibilities away from the landlord to the tenant and makes it very simple to manage and to own property. Renting can be pretty expensive and hard when you're moving out for the first time. This is the very reason why you need to know how to budget. Don't ever make assumptions on what you can afford to pay because if you mess up, it can cause a lot of financial stress or possibly get you evicted.
Please take all of this into account and if you feel like you need a roommate, reconsider the location to where you want to live, or even start off with a studio instead of a one-bedroom apartment. But I promise it'll get easier as you gain more confidence and experience. The best way is to start off small because the last thing you want to do is live paycheck to paycheck.