How to budget your first rental
Starting your first rental journey? Here's how to budget smartly and enjoy the experience without financial stress!
Know Your Monthly Rent Limit
Start by calculating how much you can comfortably afford for rent each month. A common rule is to keep rent within 30% of your income. This ensures you have enough left over for other essential expenses.
Account for Additional Costs
Beyond rent, budget for utilities like water, electricity, and internet. Some rentals include these costs, while others don't, so it's good to know in advance. Other costs may include renter's insurance, parking, and any building fees.
Save for Upfront Costs
Most rentals require a security deposit and possibly the first and last month's rent upfront. Plan for these initial payments and, if possible, create a small “moving fund” to cover any extra expenses for furnishings or essentials.
Prioritize a Small Emergency Fund
Life is unpredictable! Setting aside a small emergency fund can provide peace of mind and help cover unexpected expenses, whether it's a repair need or an extra utility bill.
Budgeting well for your first rental will not only make your life easier but will also help you start your rental experience stress-free.
