Can these expenses impact your decision to rent a place? Well, I’ll be sharing several tips to help you out. Several years ago, I signed the lease for my condominium. I had never lived alone before, and a wise friend urged doing this as a yearlong test to prove to myself that I could do it.
I was nervous but also ready. I studied a lot before signing the lease, and I’m still living here, five years later. Finding the right apartment, including one that is within your budget, can be difficult, but careful planning will allow you to find a suitable residence.
How much can you afford
The most essential thing to consider when moving out is what your monthly rent will cost. The most important cost is the amount you will have to pay to your new landlord.
Determine the amount you can pay before things are unbearable
A common rule of thumb is to try to keep your monthly expenses below 30% of your take-home pay. For example, if my monthly income was $2,000 after taxes and deductions, I might need to find a rental home below $600 per month. I had $1,400 left to pay after rent when I was first able to live on my own. I was able to find an apartment in Central Phoenix for around $1,400. Still, because I had never lived alone, I chose a more expensive apartment because it had convenient utilities.
Find out the cost of utilities
(1) As is true in real life, tumbleweeds rarely roll in front of your vehicle in Phoenix, Arizona. (2) It is very hot there in the summer. It’s so hot that the airport sometimes closes because it overheats the tarmac, which causes planes’ tires to pop out when they touch down.
In addition to summers lasting longer than any other season, high electricity costs cause blistering summer heat. I’m not exaggerating when I say my BF paid $400 for July alone. Your utility bills can vary wherever you go. However, they can become very expensive if you live in a very hot or very cold area, such as one with harsh winters.
Plan for the expenses you may not think about
When thinking about where to live, it is essential to keep in mind the expenses you don’t pay when you’re living with someone else.
I hadn’t paid attention to do my laundry because in all of my residences, I had access to a washer and dryer. My friend always added $20 to her personal expenses because she didn’t have a washer or dryer. Thus, she insisted that I search for a place with one already installed. I do not have my own home, but I have at least six free laundry mats at my workplace, which was also an incentive for her.
How much you should have saved
If you feel confident about everything above, congratulations! It’s time to find your place. Now, you must determine how much money you must save because no one else will let you know. Leaving your home and moving to a new locale is very expensive.
Here are some of the key costs you’ll need to keep in mind:
Moving costs
Packing up your belongings and moving to a new apartment could cost you. It depends on how much you have to move and how far you are relocating. The cost of buying boxes, renting trucks, and paying movers can quickly become enormous. Before moving, it’s smart to check our moving checklist to make sure that you are aware of what you must do.
Deposit fees
Both apartment complexes and landlords for residential units will require a security deposit. The deposit is usually the first month’s rent and last month’s rent plus a security deposit and a background and security fee. Some facilities may necessitate deposits for keys, remotes to enter the parking lot or parking spaces. It is crucial to ask ahead of time in order to save a sufficient amount before time.
Down payment for utilities
Utilities companies never tell you (well, maybe I wasn’t listening) that they require an advance payment when setting up a new account. You can pay for electricity in Phoenix as you go or with an ongoing plan. Nevertheless, both services require deposits, with the monthly charge being significantly more. If you do not have credit, they ask for a payment of the highest utility bill on record for that address. Don’t forget to power your computer, water, and gas.
Furniture
The other secret nobody tells you is that furniture is not cheap, and you definitely will have your expectations shattered. Finding my dream couch I had set my mind on cost me $700 after taxes and delivery charges. I love my couch, and I’m still using it six years after purchasing it. I wish I’d known about the limitations of the sofa sooner, as it would still be in good condition today if I had.
Household Items
You will have to buy household items if starting from square one. You will most likely need things like bathroom supplies and kitchen utensils as well. You may need to buy paper products, soap, and kitchen supplies such as spices and cooking oil.
How to stretch your apartment budget
If you can live independently and have saved up enough for your new endeavor, then you should save money. Some of my personal favorite recommendations are listed below.
Put the word out that you’re looking
Let people know you are looking for a new place to call your own. Our economy is continually evolving, and with that, people have changed their lifestyles frequently. You may have a friend looking for a tenant for their rental property. Or perhaps your boss’s sister wants to sublet her place while she goes away on vacation. My friend said that she was looking for something and that another friend said that she would be helping their friend move the next day. I’m helping her move tomorrow.
Location (Think outside the box)
Living in the hottest new neighborhood sounds cool, but it is typically in the middle of gentrification, which results in high rent prices. If you still want to be part of the scene, consider moving to the neighborhood over. If you’re living far from downtown, you may find a less expensive apartment rental. You’ll have access to all of the building’s amenities without paying the high monthly cost.
Availability to city transit
If you ride public transportation instead of driving a car, this could be a game changer for where you live. Fewer transportation costs can free up more money for living expenses or more savings.
Ask about utilities
Call to find out about the utility costs. In my case, I was frightened to ask beforehand what the utility costs are at the property I was considering living at. Ask your prospective landlord about utilities in advance to see what the likely averages are. Worst case scenario, you dodged a bullet, best case scenario, you know that you can afford it. Like I mentioned before, utilities can make or break you in an extreme environment.
Buy items in advance
The longer you know that you are soon going to be leaving, the more time you have to plan. By planning all of your purchases in advance, you can save money and take advantage of special deals and sales. It will be more work to move, but the savings could be in the hundreds.
The bottom line
Living alone is an exciting time in your life. However, you want to be sure you do not make mistakes. You also want to make sure you can afford to move while still adhering to your financial goals. With proper planning and saving, you can celebrate your new life chapter. We’re rooting for you.
