While the general guideline for budgeting rent expenses has always been no more than 30% of your monthly income – the demand for rentals is driving the prices up and recent data reports that renters should plan to pay much more than that.
This is especially true in popular cities where even finding a rental that fits your needs can be hard – not to mention one that fits your budget.
Here are a few tips to manage the high cost of today’s rental market:
Set Alerts In Place And Be Ready
If you are living in a city where rentals can be hard to come by, it is important to be ‘first in line’ for any property that comes available and meets your criteria.
This means that you should have all of your finances and paperwork in place, like first, last and deposit and any pay stubs or reports that are required to verify your income.
It also means being ready to leave what you are doing to go and walk through the place as soon as it is available.
If you are moving into the place on your own, consider asking a friend or family member to also be on-call to go and look at places on your behalf.
Know That The Perfect Place Probably Doesn’t Exist
If you have the luxury of waiting until a specific property comes available – that’s great. But, for most people, the need to find a new rental comes with some kind of a deadline or timeframe.
For this reason, it is important to be thinking about which points on your wishlist you are willing to compromise about.
While you may really want hardwood flooring or a garden tub – if a beautiful home in a nice neighborhood within walking distance of an awesome coffee shop comes available … and has carpet – you may need to rethink how important those hardwood floors really are.
When the demand for rentals is so high and the number of rentals available is so low – the person who is most willing to compromise is the one who is going to get housing first.
Consider Having A Roommate And Opening Up Your Options
While it might be that there are very few one bedroom or studio places available in your market, if you consider having a roommate you could start looking at 2-bedroom places and that would open up some options.
While some people may not want to live with another person – it could be a great way to stay within budget and find a nice place to live in an area of town that you love.
There are many ways to find a good roommate that you wouldn’t mind living with. You could even specify that you are looking for someone who works nights so your schedules are opposite.
It might take some time to find the rental that is going to work best for you but, with some compromising and planning ahead – you will definitely be able to find your next home.