Renting A Home? These Budgeting Tips Can Help You Save!

The thought of moving out on your own is exciting, but it can make you nervous if you don’t consider the whole cost before committing. Many first time renters do not realize how expensive it can be to rent a home and pay living expenses on their own. Before you begin searching for a house to rent, it is important to look at your income and create a budget. You need to figure out how much you can afford for monthly rent and expenses associated with living on your own like utilities.

Consider location first

The location you choose to rent in will influence how much your rent is going to be. It may also affect the availability of certain amenities. For example, a home with a large backyard may only be available in a certain part of town. Also, parking may be a concern if you are looking in a crowded area of the city. You may want to consider public transportation or commuting if the only parking nearby isn’t cost effective. However, parking is not typically an issue when renting a house.

List out your monthly expenses

If you previously had roommates or lived with others, you might be surprised at the items and services you’ll have to pay for on your own. Gas, transportation, and groceries are obvious expenses, but you should also consider cable, renter’s insurance, and furniture. Also, remember that your rent may not include utilities. Ask the landlord if they charge a fee for pets as well.

If you are having a hard time coming up with a list of monthly expenses, think about your lifestyle. Write down everything that you pay for, including car maintenance, gas, insurance, recreational activities, and eating out. Developing this list will help you divide your expenses and keep your bills paid on time.

Do not forget to include utility costs

Utility bills might include electricity, gas, water, sewer, and trash collection. These can be expensive monthly charges. Some rental agreements may include certain utilities in the price of the monthly rent, while others do not. Read the lease carefully before you sign it and ask your landlord if you have any questions about utility costs.

Figure out how much money is left after rent and utilities

After creating your list of expenses, subtract your rent and utility bills. You should have a good idea of whether or not you can live on the money that’s left. This practice helps you determine if you are ready to move out on your own or if you should reduce current expenses. If you have little money left over after monthly expenses, consider choosing a less costly rental home during your search.

Think about one-time rental costs

Be aware of the extra fees that may be required before you can rent a home. Many landlords want a security deposit in the case that damage has occured to the property. A first and last month of rent is also required by some. Be sure to ask each landlord about fees during your search to help you budget and find the right rental home for your needs.

Save for emergencies

If you have time to build an emergency fund before you rent a home, it will be to your benefit. Unexpected expenses do come up and they can bust your budget if you are not careful. An emergency fund will cushion you from a financial disaster. Even if you are ready to rent and have all the funds you need, you should start setting aside money every month.

Share costs with a roommate

If you cannot afford to rent a house on your own, or want a bigger budget to work with, then consider taking on a roommate. You can split the cost of rent and utilities and lessen the financial burden. Good planning will help you determine if you are ready to rent a home, but your roommate should also be ready. Be sure that they are willing to be a part of budgeting for your rent house.

Looking for homes for rent in Amarillo, Texas?

If you would like to learn more about renting a house in Amarillo, Texas, contact Highland Park Village today. You can call us at
806.335.1451 or Contact us by email to find out more About Us, our Specials, and our Floor Plans. You can visit us in person at 13300 Bandera Dr in Amarillo to see the properties we have available.