By Alicia Geigel

Determining the costs of living, especially how much rent you can afford can be discouraging in an inflated and competitive market. Despite this, there are still plenty of options out there that can fit your needs and end up working out for you in the long run. Knowing what to look for, and more importantly, what you can reasonably afford, is a key component in making the process a little bit easier. If you are at the beginning of your apartment search or stuck in the middle of it, these six tips can lend a helping hand!

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1. Start Off With a Budget: For any major life decision, such as choosing an apartment to live in, it is best to start off with a budget. A budget helps you weigh your income versus your expenses, including rent, utilities, necessities like food and transportation, subscription services, etc. When evaluating your budget, seriously think about the type of apartment you want to live in. Consider whether or not you want to stay close to home, move somewhere more affordable, or move to the area of your dreams. Do you want to live in an urban location or a suburban one? Nearby public transportation or further away so you can drive? Determine what makes sense for you and your current situation.

2. Evaluate the Type of Lease You Need: Believe it or not, there are a number of different lease options out there to cater to different renter needs. According to Apartment List, the three types of lease agreements are a 12-month option, a short-term option, and a month-to-month option. Depending on your living situation, one of these may serve as a better choice than the other. A 12-month lease is the most standard, while short-term and month-to-month leases are more flexible but typically have higher rates. Determining how much you can afford can influence the type of lease you are looking for, so keep these options in mind as you weigh each and every factor.

3. Consider the 50/30/20 Rule: In the world of renting and real estate, experts advise people to follow the 50/30/20 rule to help budget and determine what they can and cannot afford. Per Business Insider, the rule recommends that individuals spend 50% of their income on fixed costs like rent and utilities, 30% on daily expenses like streaming subscriptions, shopping, take out, etc., and 20% on financial goals like emergency funds or retirement savings. Doing this can help you understand and get a better grip on your financial situation, which can ultimately narrow down your rental options. Obviously, everyone’s finances are different, so if you deviate from this formula, don’t feel bad- do what works best for you!

4. Don’t Forget the Utilities: When evaluating how much rent you can afford, it can be easy to look at the singular rent number rather than the other expenses you will be responsible for paying. Factoring in your income, you may find an apartment that seems really affordable, but once you bring in other costs like water, heating and cooling, electricity, cable/internet, etc., the price of living can become significantly higher than what you once thought was manageable. Don’t forget to weigh these living expenses as you are searching for an apartment, or you may be scrambling to pay bills in the future.

5. Try to Save When You Can: As a young person, it is easy to spend recklessly here and there, whether it be on fast food, shopping, entertainment, nights out, etc. While it is definitely great to indulge in some fun and luxuries from time to time, overspending can get in the way of paying important bills like rent and utilities. Affording rent can be more manageable by cutting costs on unnecessary spending when you can. Some things you can do to save money include: making a grocery list before you go shopping and sticking to it, turning off a light in your room when you’re not in it, switching off fans when you are in one space, taking shorter showers, and purchasing energy-efficient light bulbs, to name a few.

6. Roommates Could Help to Save You Money: The costs of living definitely do not make it easy to live on your own in this day and age. If you are someone that is comfortable living with another person, consider having a roommate or multiple roommates to help cut the cost of rent and other living expenses. Splitting the rent in half or even three ways will add money back into your pocket and give you the freedom to save what you would otherwise spend. If you do decide to go the roommate route, be sure to clearly communicate how and when the bills will be split with one another to avoid unnecessary problems.

Weighing the cost of rent along with the price of everyday expenses within your financial picture is not fun, but doing so will give you a steady and stable living situation in the long run!