How to Calculate Your Total Monthly Housing Costs

Many first-time Davis apartment renters forget that their total start-up and monthly housing nut will be more than just their rent. There are application fees, deposit, first/last months’ rents, possibly a pet deposit and/or additional rent per month, additional parking, some or all or the utilities, damages you may be responsible for, renter’s insurance, etc.

It’s a good idea to wrap your head around what this total will come to before you sign on the dotted line. Your prospective landlord should be able to help you draw up a list of start-up and monthly housing expenditures. Some, like Tandem Properties, can even help you find a roommate if you decide to split some of your costs.

Want more advice? About.com has some suggestions:

• Get familiar with apartment living expenses. A large part of why many apartment hunters are afraid they won’t be able to afford their rental is they don’t know what they’ll need to pay, and so they’re understandably scared that apartment living may turn out to be much more expensive than they had imagined. The best way to allay such concerns is by becoming more informed. In addition to getting an idea of the range of rents for apartments that fit your requirements (by reviewing listings and talking to a broker), read about the various related expenses you’ll be expected to pay. Find out what you’ll need to pay before you sign a lease and what you’ll owe around lease signing, and then learn what expenses you should expect each month while enjoying your rental.

• Consider buying a renter’s insurance policy. The notion of spending money to save money may sound strange, but your wallet may thank you some day if you purchase a renter’s insurance policy, which covers you for liability and property loss. Many renters don’t realize that their landlord’s insurance doesn’t extend to personal items they keep in their apartment. So, without your own policy, you won’t be covered if your belongings get damaged or destroyed. On the other hand, having a policy will help you sleep better at night. And it probably costs less than you think.

Want more advice? Visit the link above. Stay tuned tomorrow for how to figure out how much rent per month you can afford.