How To Find An Apartment In Your Budget

Finding the right apartment to rent is no small task. You’ve got to balance cost, amenities and location, then hope your preferred rental market has the right unit available. Whether you’re a first-time renter or an old hand, here are five steps to help you find an apartment that fits your budget and your needs.

Step 1: Set a Budget

The traditional advice is that rent should account for no more than thirty percent of your gross income. According to the thirty percent rule, if you earned $2,500 per month, you would aim to spend around $850 per month on rent. Nowadays, however, the thirty percent rule is largely seen as outdated. Many renters do gig work and thus don’t have a regular income; and moreover, pricey rental markets simply don’t allow for a one-size-fits-all budgeting rule.

Instead of choosing an income percentage and looking for apartments within that range, take the time to build a budget. Track your monthly expenditures, assess whether you’re happy with your current saving and spending habits, then create a budget that can carry you through the next year. If the funds available for rent don’t feel like enough, assess your expenditures more closely—can any expenses be cut?

Step 2: Decide on Your “Musts”

Ideally, your new apartment would be spacious yet cozy, outfitted with brand new appliances, located in a neighborhood that’s quiet but also close to amenities, and of course cost much less than you were planning to pay. In reality, you’re not going to find the perfect rental: so decide ahead of time what’s a “must”, what’s a “nice-to-have”, and what’s a deal-breaker.

High on the “must” list for many renters is a pet-friendly building, in-unit laundry, and either parking or easy access to public transportation. Other renters may be hoping for a gym, balcony and a view. Write down your “musts” and your deal-breakers before you start the apartment search, but reevaluate your lists often. After seeing a few units in your preferred area, you’ll have a better sense of what’s realistic.

Step 3: Research Locations

When it comes to renting an apartment, location is everything. You can repaint your walls or ask the landlord for a new refrigerator, but you can’t scoot your apartment a few blocks south. To start your location research, check out transportation links, neighborhood safety ratings, parks, restaurants and so on. It’s also a smart idea to look into locations you haven’t previously considered. Renters often uncover housing gems in less popular areas. Don’t be afraid to look at apartments a bit further out of town, especially if you’re having trouble finding the right amenities and space at a reasonable price.

Step 4: Start the Search

After you’ve put in the pre-work to consider your budget, your “musts” and your target locations, it’s time to start the apartment search. Get property agent recommendations from friends, or check reviews online to find trustworthy agents. In parallel, you can also be searching for units on your own via online platforms like Zillow or social media.

When attending apartment showings, be sure to take photos or videos of each unit and record a few notes when the tour is over. Using a voice notes app is a great way to collect your thoughts for later. You should also have a list of questions ready to ask. For example:

• Are utilities included? If not, what’s the average monthly cost of water, heat, electric and so on?
• Who else lives in the building? Are there families, pets, colleges students, etc.?
• How long do tenants stay in the building, on average?
• What’s the repair policy; who pays if an appliance breaks due to normal wear and use?
• Is the unit managed via an online platform? What’s the process for getting in touch with a human if there’s an emergency?

Step 5: Sign the Papers

Congratulations! You found an apartment in your budget and you’re ready to move in. Before signing the papers, read your contract carefully to understand the ins and outs of what you’re agreeing to. Many states have free legal advice online to help you understand what you’re entitled to as a renter, so if anything looks off in the contract, consult a community legal aid expert before signing.