If you’ve been thinking about a change in your living situation, you may be considering a move to an apartment. According to statistics, more than 39 million Americans – or one out of every eight people – call an apartment home. For many young people or those who have just started their professional careers, having a place of their own is a very important step in their life journey.
Many people prepare to make the move without knowing all the details of a new housing option. Getting caught off guard by (apartment budget expenses) can lead to financial constraints. Preparing ahead of time for the costs associated with apartment living can help you budget and have extra money for fun things like furniture and design.
If you’re wondering
Consider setting up a bucket budgeting system to help you build funds for an apartment. Use this guide for more helpful information about saving for an apartment.
How much is it to rent an apartment?
This question has many variables, including where you want to live, the size of the apartment you want, the neighborhood the apartment is located, the number of amenities at the complex and several other factors.
The average price for a 1-bedroom apartment is $1,711, while a 2-bedroom is $1,972. But that is state dependent. In Oklahoma, the average cost of renting a 1-bedroom apartment has dropped by 1 percent to $693. To dig a little deeper, the average cost of a 1-bedroom apartment in Oklahoma City has dropped nearly 7 percent to $706.
It will take some discipline to save for an apartment, especially if you have limited savings with which to start. Paying rent can be an eye-opening experience for those who have not done it before. You don’t want to get into a situation where you might have to break a lease, as that will have negative consequences for your credit.
The general rule of thumb is that your income should be three times your rent. So, if you’re looking at an apartment that is $750 per month, your income should be $2,250 per month. If you have concerns about whether the (apartment income requirements are gross or net), most landlords want your gross, or pre-tax, income to be three times the rent.
If you have an hourly salary, it can be a little bit more difficult to calculate how much you need for rent, because your take home pay can vary given the number of hours you may work during a pay period.
For example, if a person makes $15 and works 40 hours a week, the max amount of monthly rent that would be affordable is $750. That figure is calculated by Hours x Hourly Rate x 50 Weeks and divided by 40.
One critical element when it comes to saving for rent can be the inclusion of utilities into the overall budget. Some apartments will have utilities included, but there might be other expenses like parking that may affect your budgeting. You’ll also want to take into consideration that most apartment leases require a first month and last month security deposit hen you save for an apartment.
A general guideline is that you should keep your utilities to under 10 percent of your gross income. Finding out what the average costs are in your area can help with budgeting. While 10 percent may seem like a lot, research shows that some low-income customers often face higher energy costs, with more than 7% of their monthly budget going toward energy costs.
