About this calculator
Our rent calculator estimates how much rent you can afford.
What is the rent-to-income ratio?
The rent to income ratio is a financial indicator that indicates the percentage of your income that is used to pay the rent. This is computed by taking your monthly rent and divided by your monthly income and then converting it to a percentage. To illustrate, when you make an income of $3,000 in a month and pay rent of 900 you are paying, then your rent to income ratio is 30%. The ratio can be used to estimate the ability to afford housing: a smaller percentage shows that rent is a smaller portion of your income, leaving more to save and other spending and a higher percentage could indicate rent is eating too much of your income. According to many financial advisors, the ideal ratio between rent and income is 30 or less to ensure having balanced finances.
Considerations when renting a property.
Before renting a property, there are things to consider. Rental agreement charges are higher than the rent. A complete deliberation prior to coming to a final judgement will help spare you the problems of being soon disappointed. As mentioned above, the extent of what you can afford in terms of rent is determined by a few factors, including, but not limited to, the amount of rent you pay and the rental commissions. The rent calculator will assist you in determining the first dimension of the rental price, and that is whether the actual rental price is affordable or not. Other considerations that affect the affordability of different individuals that you must take into account include:
- Location- the better the location of a property, the higher the rental price. In such a way, the city dwellers will discover that the prices of an urban house will tend to be higher than those of suburban and rural houses. The distance to places of frequent use, like work or school, proximity to family and friends, the availability of a good transport system to enable the property owner to commute easily, and the crime rate of a place are other factors that an intended property would be considered before buying it. You had better come to a neighborhood to experience its landscape and calmness first before making a choice about your new neighborhood.
- Size- smaller rentals tend to be cheaper in terms of rental. You will have to pay a higher per square feet to get more space.
- Condition of the property- renting an apartment that is brand new or has been refurbished with all appliances intact will result into high rent. Nevertheless, it is more satisfying than lease a property that is run down or in bad condition. A careful examination of the general condition and quality of property is necessary before one could make any commitment of a new house.
- Amenities- availability of certain amenities can render a rental house more fulfilling. When searching listed houses to rent, it is good to have a list of wanted amenities. Is there a pool? Would you be able to save money on gym costs in another location through the use of the fitness center onsite? So what about a doorman, laundry, sufficient parking, alarm, or security?
- Rental restrictions- certain rented properties are restricted and have rules to guard the property and tenant. As an example, certain rentals may limit the types of enhancements that tenants can make to the building and may limit pet ownership. To negotiate or understand these restrictions, you will have to check your terms of rental.
- Additional expenses Renting has more expenses in addition to rent when you start the term of your rental application and agreement. These costs include application fee, security deposit in case of poor credit, pet owner fee and moving cost. A landlord may at times include a recurring utility bill of water, gas, electricity, trash, and parking to your rent.
- Connection with landlord and co-tenants- the relationship you have with landlord and co-tenants can determine how rewarding your renting experience will be. More restrictive rules can be lifted by a landlord, should you construct and preserve a productive rapport by payment of rents on schedule and in excellent repair. Renting a house is not recommended when you expect to have a problematic relationship with your landlord or co-tenants. Preventing a possible dispute can be achieved through having all the rental agreements written.