This rent calculator is a helpful tool for both the tenant and landlord. After all, the first and most important factor is whether you can afford the monthly rent amount or not.
That way, both parties can determine whether the monthly rent payment is something the tenants can sustain alongside other monthly expenses and debt payments.
There is no fixed method of how landlords or tenants calculate monthly rent. When looking for a rental property, here are some costs that factors that add up to the costs :
Factors in Choosing a Rental Property
Debt to Income Ratio
Sources say a range between 25-33% is a good debt-to-income (DTI) ratio. Check with this debt to income ratio calculator.
Location
Aside from proximity to work, consider schools if you have young kids, availability of public transportation, the proximity of basic needs like hospitals. Check for areas that are prone to floods as well.
Size and Quality
Aside from the suitability of the size, check the inclusions, such as appliances included, anything that will bring your out-of-the-pocket costs. If it is an apartment or unit check if there is a laundry facility or a gym.
Check with the landlord if there are repairs needed for the rental property and who picks the bill in such cases. Try to find reviews online and any information from previous tenants.
Landlord
Check the rules and restrictions by the landlord. Some do not allow any pets nor putting nails on walls, or required lawn maintenance for example.
Other Costs
Check the required upfront fees such as security deposit, insurance, application fee and even pet deposit. Calculate the basic furnishings, or the removalist cost when you move in from a previous rental property.
Also, calculate your recurring bills like electricity/power bills, water, internet.
When you have calculated all these, you can use the rent calculator below to make a fairly good estimate.
Rent Calculator
Use this rent calculator to give you an idea of the monthly rent payment you can afford.
Please take note that this rent calculator is just a guide, and it depends on the accuracy of the calculations of other expenses you have added.
Ways to Lower Rent
- Compare the total rent amount within the circumference of where you are considering moving.
- Consider getting flatmates. Look up websites to help you find potential roommates or better yet, ask family and friends who might be interested in sharing the space.
- As a tenant, it won’t hurt to try to negotiate with landlords for possible ways to lower the rent amount like lawn maintenance to bring down monthly rent.
Practical Renting Pointers
- Check the rent agreement. In the case of fixed leases, your rights as a renter include protection from rent increase during the duration of the agreement.
- Ensure you get everything put in writing, especially what the landlord offers and your responsibilities as a tenant. Misunderstandings and loopholes in the agreement can amount to considerable total, or worse, legal disputes.
- When moving in, inspect the property thoroughly, create a lease inventory and condition list, and have the landlord sign it. Remember to take pictures of the property, put it in writing and have the landlord sign them so that any damages that were there before you moved in will not be charged to you.
- Make sure that as a tenant, you keep the rental property clean and well-maintained. The aim is to make sure that should you need to end the lease, it must be in the condition as it was before you moved in, except the wear and tear in the course of time.
- Report any urgent need for repair and check your rental agreement as to which ones should be shouldered by the tenant or the landlord.
- To minimise risk in cases of theft or fire, it will be a good idea to get renter’s content insurance
- Check internet and mobile connectivity of the area prior to finalising rental agreement.
- Check the crime and safety of an area through various resources online.
- Compare utility costs, check with the utility service providers, and use this free resource in comparing basic bills as electricity and gas.
- It might be a good idea to check if there are railroad tracks or airports nearby to make sure you have a quiet neighborhood, particularly at night.
- Maintain a good relationship with the landlord-tenant relationship by being on-time with payments, taking good care of the rental property, and abiding by the rules (e.g. no pets allowed)
- Get to know your neighbors and be nice to them, as there might be instances wherein they may be able to help you.
Frequently Asked Questions
How do you calculate rent?
To calculate rent affordability, a general rule is to check debt to income ratio first. Experts place it at anywhere between 25-33%. After factoring in your debt, list down your monthly bills such as electricity, gas, health insurance to come up with your affordable rent.
Can I afford $1000 rent?
If you are living by yourself, you can most likely afford a $1000 rent, depending on your other monthly bills and debts or loan payments. One way to bring down a rent is to look for flatmates as long as this does not violate your terms of lease with the landlord
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