Affording Your First Apartment

Moving into your first apartment is a significant and exciting step in your life. It marks adulthood and independence. With this independence, however, comes responsibility. One significant form of responsibility you will take on when renting an apartment is financial obligation.

Determine Your Expenses

This is likely the first time in your life you have really been responsible for your finances. People often don’t realize just how much the cost of living is until they start living on their own. Many expenses sneak up on you that you might not think about until you’re faced with them. Have your parents or a trusted adult help you estimate how much you will need to spend on things such as furniture, utilities, groceries, rental insurance, toiletries, gasoline, and entertainment. Also, check to see whether your apartment complex charges fees for things such as pets and parking.

Have realistic expectations. Your first apartment likely isn’t going to be your dream home. Even if you can somehow squeeze the rent for a top-end apartment into your budget, you might be sacrificing other things to afford the home. You might have to give up traveling, eating out, or going out with your friends just to afford the perfect apartment.

Decide whether you need or want to have a roommate. A roommate can help you cut the costs of rent and utilities. If you do choose to have a roommate, you want to make sure you find someone you get along well with. If you and your roommate aren’t compatible, the headache might not be worth the money you would save.

After you have determined what your monthly costs will be, you need to determine what the expenses of moving will be. You will likely have to pay a one-time security deposit, which may or may not be refundable.

Create A Budget

Create a budget before moving into your first apartment. You want to make sure that your salary will cover all of your expenses. You don’t want to go into debt just to cover the basic costs of living. You also don’t want to run into a situation where you can’t pay rent.

To create a budget, you need to calculate the costs of several things. First, determine what your monthly expenses are and compare that to your monthly income. Be sure that your monthly income is slightly more than your expenses. You want to have a little left over for emergencies and savings. A good rule of thumb to follow is to make sure your monthly income is at least three times your monthly rent. Never try to rent an apartment that is out of your price range.

Budgeting is easier if you can find an apartment that includes utilities. This way, you’ll just have to make one simple, predictable payment each month. If your rent does not include utilities, factor in electric, gas, water, internet, and renters insurance into your budget. At first, you’ll have to estimate what these expenses will be, but after a few months, you will have a more accurate idea of these costs. Remember that your budget can be flexible. Your expenses and income change over time — adjust your budget accordingly.

Prove You Can Pay Rent

Naturally, landlords want responsible tenants who will pay rent on time and keep their apartments in good condition. When applying to rent an apartment, you want to prove to your prospective landlord that you will be a reliable tenant and will be able to pay rent in full and on time every month. You can take several steps to accomplish this. Obtain a letter of employment from your place of work on official company letterhead. Make sure the letter includes the date you were hired, your title, and your salary. Also, show the landlord your most recent tax return, bank statements, and pay stubs. All of these documents will prove that you are a responsible individual who is able to manage his or her finances. You can easily give all this information to your potential landlord simply by filling out an online rental application such as this one.

One of the most important things you can do is make sure your credit is in good shape. Landlords almost always run credit checks on applicants. The better your credit, the more likely landlords will want you as a tenant. Checking your credit is easy. You can easily get a free credit report online from Credit Sesame. If your credit is less than perfect, check your credit report for any errors. Dispute any errors you find, because fixing these errors could dramatically improve your credit score.

Getting your first apartment is an exciting time in your life. You’ll have your own space, and you can decorate it how you want. You can decide which friends to invite over. But remember your responsibilities as you enjoy your independence.