How Much Rent Can You Afford
By Kurt Real Estate Nov 23, 2019
Rent can be just as much as a mortgage payment, if not more. As we’ve noted in Buying vs Renting, you should weigh all of your options before deciding whether to rent or buy. With consistently rising home prices in Orange County, large down payments are prolonging some from becoming homeowners.
Renting is a great alternative, however, just like buying a home, you should crunch the numbers and determine what you can afford before you start looking. Most landlords will require a certain amount of monthly income in order to even qualify. Rule of thumb, your rent should be no more than 30 percent of your monthly income.
You’ll also want to factor in other expenses like renter’s insurance and utilities (water, gas, electricity, cable/internet, etc.). These costs will generally equate to approximately 10 percent of your rent. Once you’ve added together these costs of living, it’s time to break out the calculator and actually crunch the numbers.
Landlords do not want to hand over the keys to a tenant they’re skeptical of. If you’re at the border of what you can afford, take a look at more affordable options. Orange County rentals come and go in a matter of days so you’ll want to present yourself as the strongest possible tenant when applying to guarantee yourself a place.
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