When you’re thinking about becoming a first-time renter, there are lots of things to ponder . Many of these factors will revolve around knowing how to budget for your apartment upfront and setting up a monthly budget between yourself and potential roommates.
Finances aren’t going to be the most fun aspect of your first apartment , but they are a necessary one. In today’s competitive rental market (especially in big cities) it’s crucial to have all of your budgeting skills up to par , as it could help you gain an edge over other applicants.
If you need some budgeting pointers, follow the guidelines below to get started:
Location is everything
There’s a good chance you already have an idea of which neighborhoods you want to live in. Depending on the locale, your monthly budget can differ drastically. Many renting experts recommend that you not spend more than 30% of your annual income on rent, and many property managers will refuse an offer if you’d be spending too much on rent.
However, you might have to be flexible about this rule in cities where high housing costs are way above the norm, such as New York City or San Francisco. In places like these, you might have to plan even further in advance, as the screening and budgeting process could take much longer.
No matter where you choose to live, though, you will need to– above all else– ensure that you are setting a realistic budget based on your take-home pay and the desired city/neighborhood.
Account for all your utilities
We’ve written about accounting for your utilities in the past, but the important part here is to make sure you don’t miss anything. There are a lot you could be responsible for, so go through and make sure that you’ve accounted for them all. You don’t want to be caught out by almost moving in, just to find that you haven’t yet set aside money for pet fees, renter’s insurance, or something else not so obvious.
Expect to pay a lot upfront
Renting might be cheaper than buying, but you’ll still have to spend some serious cash in the first few months to secure your dream apartment.
In most situations, landlords will expect a security deposit, first and last month’s rent, application fees, a possible finder’s or broker’s fee, and a pet deposit if you have one (or more). Expect to be paying two to three times your monthly rent upfront, so make sure you and your potential roommates are saving accordingly.
Budget for more than housing
Unfortunately, the above are just to secure the apartment itself. Moving into the apartment is another large expense, since renting moving trucks doesn’t come for free. You still need to eat to live and may need more things like furniture and household goods you haven’t really needed before. You’re going to have to fully stock a kitchen and furnish several rooms, and those are going to take a significant amount of money. Price out a bed, mattress, tables, chairs, a couch, kitchen utensils, pots, pans, and everything else you might have reason to use. Here’s the time when you want to find things that serve multiple purposes, cutting down both on how many things you need to buy, and the money you need to spend.
Of course, you’re going to have to leave your apartment sometimes, and you need to account for that. How will you get around? Car, public transportation? All of those have a cost attached. When and how often are you going to eat out, or just go out for a night on the town? These don’t come free, and failing to budget for them will leave you wondering where you keep coming up short.
Select roommates carefully
An apartment can be a big financial burden, so why not divide it with your friends? You’re striking out on your own, so why not take your college friends with you?
Hanging out with a friend and living with them aren’t the same thing. Things might work out well, but there’s always the chance things go wrong. Do you know how well they handle their finances? If your roommate doesn’t pay, you’re still liable for their half of the rent. Having to pay for someone else’s financial irresponsibility can make things awkward, if not outright hostile.
As such, it’s crucial that you screen each individual who might be a potential roommate. If he or she seems like a great candidate, meet with him or her to discuss how you might divide bills and rent, as well as where you stand on additional guests and splitting up chores.
Save for those little extras
You might plan out every detail with you and your roommates and think all the bases are covered upfront. However, you’ll need to consider your rainy day fund, as well as other monthly expenses that might have slipped under your radar.
For instance, do you like going to the gym? You won’t have one on campus anymore, and gym memberships can get pricey, so you might have to reallocate your spending. You also need what I call a “fun fund”– it’s not all work and no play, after all. This budget is for nonessentials like money for dining out with friends, going to the movies, expenditures for various hobbies (gardening, painting, etc.), gifts, shopping, and traveling. You can’t predict everything with certainty, so you need some extra money for all the little things that come up. You’re looking forward to the freedom that your first apartment will give you, so make sure to budget a bit of that freedom in there as well.
The Boujie Budgeter dives into how to not overspend with holiday decorations
The holiday season is around the corner and no matter which social media platform you browse, someone is prepping their tree or decorating with poinsettias in their home. For older Zillennials, this year could be different, and many people are experiencing the festivities in their first apartment.
Due to inflation and the economic crisis happening across the country, prices are at an all-time high in grocery stores, department stores and even home decor shops. Decorating your apartment for the first time can seem overwhelming, but the holidays bring new anxiety.
Social media has transformed everything into a focus on aesthetics, hauls, and presentation specifically tailored for Instagram. Though it seems like an added pressure to have the most post-worthy home for the holidays, it doesn’t have to break the bank.
The self-proclaimed Boujie Budgeter, Mykail James, has always been passionate about personal finance and helping her community. “I started my finance platform because there wasn’t financial education that catered to this new wave of young professionals,” James tells GU.
Topics around money, such as credit, bargaining and investing, are difficult to grasp due to complex language and terms many people may need to be more familiar with. James shared her top financial tips for frugal holiday decor shopping for Zillennials.
Those with a holiday shopping game plan usually shop a month or two in advance to snag the major deals. According to Shopify, 41 percent plan to start shopping by the end of October. “When it comes to holiday decorations, we run away from being intentional,” James says. “You create that intentional space when you know what you want your space to look like.”
Fitting An Aesthetic Is Not A Requirement
Though the trend of lifestyle content has taken over the timeline, it doesn’t mean you have to overspend to have trendy pieces for your home. “If you’re not buying the Architectural Digest of the season, then you’re not getting a huge peek into what other people’s homes look like, but we have a constant reminder on social media,” she says. It’s important to remember that the holidays are meant for creativity and personalizing your safe space.
Try Renter Friendly Decor
As many Zillennials prep their homes for decorating their first apartment, they now have the opportunity to look into the market for renter-friendly decor. “That market has definitely exploded in the last five years,” she says. From peel-and-stick wallpaper to lighting fixtures, there are more opportunities to have the affordable decor in your home without the commitment of long-term installations.
Shop In-Person For Better Deals
Many of us live on the Amazon website for quick delivery deals, but many in-person sales offer consumers more items for a better price. “Craft stores like Hobby Lobby and Michaels are the kinds of places that have huge discounts on holiday decor, especially right after the season ends,” she says.
Don’t Feel Pressured To Have Traditional Decor
For James, she doesn’t subscribe to having a traditional Christmas tree or wreath in her home. Though some social media can add pressure to have cookie-cutter Christmas decor, there’s also a rise in Zillennials making their own rules regarding holiday scenery. “When you are in control of your holiday vibes, what feels natural to you could be completely against the grain of what everyone else feels like is the vibe,” she says.
About Kenyatta: Clark Atlanta University and Medill School alumna Kenyatta Victoria is the Girls United writer covering everything from news, pop culture, lifestyle, and investigative stories. When not reporting, she’s diving deep into her curated playlists or binging her favorite comfort shows.
Yes, you can rent an apartment without a credit history.
There are a few major challenges in finding no credit check apartments. Weak credit history can not only make it harder for property managers to take you seriously, but it can also make it more difficult for you in a competitive rental market. While no credit check apartments do exist, it’s best to not limit yourself, even if you know an uphill battle with property managers may ensue.
“Credit history plays a major role in securing many of the things you need for everyday life from lines of credit, utilities and even an apartment,” said Nova Credit.
It’s such a regular part of everyday life that it doesn’t take long to begin establishing it. However, if you’re ready to rent before you’ve got a credit history, there’s a way.
How to rent an apartment with no credit
Property managers prefer you to have a credit history for more than just your credit score.
According to Self, “The two primary factors landlords look at are your past payment history and your current debt load.” This means they want confirmation you pay your bills on time and that you have enough money to afford the rent each month.
While not having a credit history makes it harder to prove you’re a worthwhile tenant to have, it’s not impossible. Know going into the rental process that you aren’t the first person trying to rent an apartment with no credit.
Consider these strategies to help convince a property manager you’re a good tenant, even without the history to prove it.
1. Don’t hide the truth
Property managers are typically not big on surprises, so you don’t want to catch them off guard. If you know, when you fill out a rental application, that your credit history is going to trigger some cautionary flags, get out in front of it.
Have a conversation with the property manager before they pull your credit report letting them know what they’ll find. Explain the circumstances leading up to these blips, or lack of credit history, and avoid any surprises.
2. Enlist a co-signer
The No. 1 best way to land a great apartment without a credit history is to find yourself a really responsible co-signer. This is someone with great credit like a parent, older sibling, a close friend or other family members. Even if you do have some credit, property managers like to see co-signers for young renters because it gives them a safety net. If, for any reason, you can’t pay your rent, your co-signer becomes liable.
Keep in mind that this legal responsibility could seriously hurt your co-signer’s credit if you fail to stay current on your payments. Failure to pay entitles your property manager to file a lawsuit or even try to evict you.
Make sure you’re not taking the support of your co-signer for granted. Have a plan in place should you need to rely on their help so they know you’ll pay them back, and show your appreciation for the favor they’re doing for you, making it possible to rent an apartment with no credit.
3. Find a roommate
Moving in with a roommate can help take the pressure off your credit history much like a co-signer can — as long as they have a good credit history themselves. If your combined income, and one person’s credit history, meet your property manager’s rental requirements, there’s a good chance you’ll get the apartment.
Again, when relying on the credit history of another, it’s important to take the situation seriously. If you don’t hold up your end of the rental agreement, their credit rating could get a major ding, not to mention it will mess with your friendship.
To protect you and your roommate, consider writing a thorough roommate agreement before moving in together.
4. Show financial proof
Having a steady income and solid finances are one way you can demonstrate to a property manager you’re fit to rent that doesn’t involve enlisting another person for help. Even without a history of whether or not you pay your bills on time, with a firm financial foundation, you can assuage any fears.
If you don’t have a credit history, the next best way to show you’re able to afford the rent each month is with proof of income. This is especially important for no-credit-check apartments.
Generally, property managers want your income about three times more than the monthly rent. To prove your income, bring at least three month’s worth of pay stubs. They not only show your regular income but also that you have a steady job.
Add to this documentation your last month’s bank statement and information on any assets you may own. This all counts as money you can use to pay rent. The more you have in savings, the better a property manager will feel about not being able to review credit history.
5. Make an offer they can’t refuse
There are two ways you can appeal to a property manager without having to prove you’re the perfect tenant. By playing to their weaknesses, you can make a big first impression.
Weakness #1: An unrented property is an expensive property. Even when an apartment is vacant, it’s still costing a property manager money. Especially if the unit isn’t in high demand, the longer it sits empty, the more it’s going to cost them in mortgage payments, utilities and property taxes. Offer to move in immediately and stop your property manager from having to cover all these expenses out of pocket.
Weakness #2: Money equals security. If a property manager is hesitant about letting you sign the lease, offer to pay more upfront. Whether it’s a larger security deposit or an extra month’s rent, making this gesture without anyone asking shows you’re serious about the apartment. It also shows you’re responsible and have thought this through.
Using either of these strategies may work best when figuring out how to rent an apartment with no credit. You may make such a great impression that credit history doesn’t even come up.
6. Promote yourself
Often, when applicants have a credit history, they’ll attach a letter explaining any questionable parts. Property managers always appreciate the clarification.
If there’s an understandable or legitimate reason you don’t have a credit history, it can’t hurt to explain it to them either. Especially if the reasons are out of your control, don’t keep them to yourself.
Reiterate what you might have mentioned as you filled out your rental application with a formal write-up. Toss in a few reasons why you’d make a great tenant as well. Promote yourself when you already have their attention.
On the same note, don’t feel uncomfortable asking for others to promote you, as well. Collect a few written references from employers, professors or teachers or even your family. These endorsements are a great way for property managers to get a feel for your dependability.
7. Inquire about a short-term lease
Though it’s pretty standard, a 12-month lease is a major commitment for both the tenant and the property manager. For this reason, trust is a big factor when it comes to tenant selection, and trust is harder to establish without a credit history. As an alternative, try to negotiate for a short-term lease.
If that doesn’t seem of interest to the property manager, ask about going month-to-month. This enables them to end the lease after just one month if they’re not comfortable having you as a tenant. It also demonstrates your confidence in yourself as a renter, agreeing to such a risky arrangement.
Both of these options allow you to prove you’re responsible while taking the stress off the property manager to give you a full-year lease. If all goes well, they can extend the lease, or change the terms, after you’ve proven you can handle it, just make sure you pay your rent on time or early.
8. Search for no credit check apartments
The alternative to worrying about your credit history, and how to prove you’re a good tenant is to bypass the need for a credit check altogether. Independent or private property owners are often more flexible with applicants who don’t have a credit history. These are individuals managing their own properties rather than going through a management company or condominium association.
The best way to find no credit check apartments is to look at specific listings. Is the contact an actual name or a company? You want to get to a person.
You can also look for listings outside the normal apartment finder websites. Those renting by owner might look to social media first to find a tenant rather than listing elsewhere.
When in doubt, word of mouth can make a great way to find a listing. Ask friends and family if they know of anything coming up where the owner might not worry too much about a lack of credit history. You could then use that person as a referral to help get in good.
How to improve your credit score
Even as you search listings and figure out a strategy for how to rent an apartment with no credit, you can actively work toward increasing your credit score. If you don’t already have a credit card, apply for one. Start simple by asking your bank about opening a credit card with a low limit. This is a great way to build credit without risking a lot of debt.
You also want to make sure you only apply for credit cards as needed. This is not a ‘more the merrier’ scenario, since unnecessary credit can do more harm than good.
At the same time, don’t close any credit cards you’ve already opened. Even if you’re not using them anymore, as long as they aren’t costing you anything in annual fees and you still only have a few different cards, keep them open.
If your credit history isn’t great because of a large amount of debt, consider consolidating it with a debt consolidation loan. Even though this is another loan, you use it to pay off all your existing debt. This means the individual payments you make to cover your car, student loans and more are all merged into one payment, which can help.
If your debt centers around high credit card balances, you can consolidate those too with a balance transfer. That way you’re only paying off one card each month rather than a bunch.
Once you’ve secured your apartment, make sure to pay all your bills on time. This includes utility bills, your cell phone bill and even your credit card bills. If you have any loans, paying those on time counts too. Believe it or not, all this helps boost your credit score and establishes a positive credit history.
Taking any or all of these steps can help improve your credit score, making it easier to rent down the road as well as make major purchases in the future.
Keep the future in mind with no credit check apartments
For those embarking on an apartment search for the first time, or if you simply don’t have the best credit history, the process can feel stressful. Even though it’s possible to figure out how to rent an apartment with no credit, be ready to put in some work. Make sure you have the right documentation available and the right support if necessary.
No credit isn’t the end of the world when it comes to renting, but it’s something to avoid dealing with more than once. For that reason, once you’re in your first apartment, start thinking about how to improve your credit score for the next time around.
Inside: Are you thinking about moving out? This guide will help you identify the costs of moving, calculate how much you need to save, and advice on expenses. You need to learn and plan for the practicalities of living on your own.
Taking the leap to move out and start living independently is a significant milestone.
However, it’s important to ensure you’re financially prepared for this exciting new chapter in your life.
One vital step you need to take is to start saving money, essential for covering your future expenses, emergency fund, and even fun activities. Through careful budgeting, consistent saving, and efficient spending, you can make the transition smoother and stress-free.
Around here at Money Bliss, we focus on the need to save money before making a purchase or taking the next step, so you will be better equipped and stay debt free.
This way, you can fully enjoy the freedom and responsibilities that come with having your own place.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Why is Moving Out on Your Own Important?
There comes a time in one’s life when one feels the need to spread their wings and live independently. We all wanted to move out at 18 – I remember!
This crucial step, however, requires substantial planning. Yet, most just jump right to moving out.
The key thing you must do? Save. But, why so important?
Here’s why: independence means bearing your own expenses. Rent, groceries, utilities, they’re all on you.
Plus, unforeseen emergencies are less shocking when you have a well-stocked safety net.
What’s a good amount of money to have before moving out?
The amount you need to move out depends on many factors.
However, on average, you should aim to have between $6,000 and $12,000 stashed away before you pack your bags.
This sum would cover initial moving costs, deposits, furniture, essentials, and a few months of rent.
Remember, it’s not just about surviving your first month. You’ll need enough to keep you comfortable while you’re settling into your new life.
How much should I save before moving out?
Remember, there isn’t a “magic number.”
Yet, many wonder is $5000 enough to move out?
Your savings should cater to your housing costs, which ideally should not exceed 1/3 of your monthly income. Besides, factor in regional cost of living, moving expenses, and an emergency fund.
What determines the amount needed?
The amount to save before moving out varies greatly. It hinges on factors like your targeted living area because there is a wide fluctuation of HCOL vs LCOL areas, your projected expenses, and your income level. The rent in one city might be higher than in another.
As well as your personal lifestyle choices and spending habits will greatly affect monthly expenses.
Evaluation: Your Financial Status
Your financial status, including current income and expenditures, plays a crucial role in determining the proportion of your earnings you should save before moving out.
If you have a higher income with lower outlays, you can save more, whereas having roommates can significantly cut down your living expenses, enabling better savings.
A careful review of these factors allows you to create a realistic saving plan tailored to your unique financial circumstances.
You need to make sure you are on track to how much money should you have saved by 25.
Assessing your current income
Take a deep look at your income. How much do you earn each month? How regular is this income? These are vital questions.
Your net income (what you earn after taxes) sets the tone for what you can afford. This is the amount listed on your paycheck.
Learn more about gross pay vs net pay.
Understanding your debt load
Debt can be a significant hindrance when contemplating moving out. How much do you owe monthly?
You need to consider your debt-to-income ratio. This is what mortgage lenders do to figure out if I make 70000 a year, how much house can I afford.
If your debt is taking up more than 30% of your income, you need to be careful on how much you spend on rent and other mandatory expenses.
Learn how to pay off your debt faster using Undebt.it.
Know Your Expenses: Breaking Down the Costs
I’ll be honest. This is what most people overlook when they move out or even purchase a new home.
For instance, the couch I loved couldn’t fit into our new house. Sigh.
Now, is the time to learn how to save 5000 in 6 months.
Identifying the cost of moving
Moving costs can bite! They depend on relocation distance, packing supplies, and the complexity of the move.
Movers can range from hundreds to thousands. According to Moving.com, the average costs for a studio or one bedroom range from $501 – $985. 1
Thankfully, you are young and you can pay friends for help with pizza. But, you still need to account for a moving truck if needed.
Hidden costs you need to consider
When moving out, some costs aren’t glaring. These include fees for installing new services, delivery fees for new furniture, or penalties if foregoing a current lease. Yes, these hidden costs can pile up!
Even, the costs to put blinds up at your new place! A room darkening shade can easily set you back $50; I know, I like my sleep.
So, be sure to consider them when saving for your move.
Setting Up a Personal Budget
A budget plays a crucial role in being financially stable. Period.
Call it adulting if you want to, but you cannot spend more money than you make. That is a recipe for a disaster and way too much debt.
By adhering to a well-planned budget, one can prevent financial stress to ensure financial security and start your journey to financial independence.
How to start a personal budget
Starting a personal budget is simple.
List your income and expenditures. Include rent, groceries, utilities, subscriptions, and yes, even luxuries.
The goal is to spend less than you earn.
Then, you can save and plan for your future.
That means you may not be able to afford everything you want. And using credit cards to fill the gap isn’t smart.
The 50/30/20 budget rule explained
For many, the 50/30/20 rule serves as a rough guide for managing your finances.
It suggests allocating 50% of your income to necessities, 30% to wants, and 20% to savings.
This is a beginner-friendly method to manage spending without feeling overwhelmed.
Starting to use a budget app is extremely helpful.
YNAB
Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.
Pros:
Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.
Avoid These Budget Downfall
The most common expenses that are forgotten are irregular expenses such as vacations, weddings, or holiday spending. These variable expenses do not occur on a consistent schedule.
To manage these, note these big-ticket events on a calendar, estimate their cost, divide by 12, and contribute that amount to a high-yield savings account each month, offering you a guilt-free way to cover these costs without stressing over money.
Make sure you remember all of your expenses by checking out this full list of personal budget categories.
Creating and Managing an Emergency Fund
Why an emergency fund? It provides you with a safety cushion.
This fund prevents unexpected expenses from ruining your plans or sending you spiraling into debt. It acts as your financial parachute when you need it the most.
Around here at Money Bliss, we consider it a staple in financial wisdom.
Ideal size of an emergency fund
As a rule of thumb, your emergency fund should cover at least $1000-2000 in savings. This will provide money to cover a car breakdown or new car tires. Honestly, the goal is never to use your emergency fund.
However, you may look at a bigger rainy day fund that will cover 3-6 months of living expenses. This will provide you with a comfortable safety net against unexpected events like job loss or medical emergencies.
But remember: start small. Even $1,000 can buffer you from financial shocks. Check out these mini savings challenges.
Enough Money for One Year
A year’s worth of savings may sound excessive.
However, it provides unmatched stress relief and financial stability that can be life-changing, especially for young adults.
This tip will change your financial landscape immensely and provide you with more opportunities than you can imagine.
You can handle life’s ups and downs more easily when you have an entire year’s expenses sitting in your bank account.
Raisin
Simply select one of the high-yield savings products offered by their network of federally insured banks and credit unions to begin your savings journey.
You can open a free Raisin account in just a few minutes!
Compare Rates
Better Planning for Potential Bills and Fees
When preparing to live independently, don’t forget to plan for unanticipated costs.
Rental fees and deposits explained
When you rent, you’re likely to encounter a range of fees.
First off, you’ll have to foot a security deposit – typically equal to one and a half month’s rent. This upfront cost acts as insurance for landlords against damages. If you leave the place in top shape, you’ll get your full deposit back!
Additional fees could include application fees or non-refundable move-in fees like background checks. Know what you’re paying for before you sign the lease.
Utilities and recurring expenses
Electricity, gas, water, and internet – these utilities fall on your shoulders when you’re living solo.
These costs can eat a hole in your wallet if unchecked!
To avoid surprises, ask for estimates before signing a lease or find a place that includes utilities.
Other recurring expenses? Consider subscriptions. Gym, Netflix, Spotify – they all add up!
Trim
Perfect for the person who hates to hassle with canceling subscriptions and checking spending.
Trim adds value in such ways as canceling old subscriptions, setting spending alerts, checking how much users spent on ride-sharing apps the previous month, and automatically fighting fees.
Learn More
Go for a Trial Run Before Moving Out
Adopt the practice of “paying rent” beforehand by setting aside a third of your income into a dedicated savings account which can test your financial readiness for the move. See if you can move out and afford it before you actually move.
Remember, being savvy with money while planning to move out involves carefully auditing your spending over the last 3-6 months and developing a budget that accounts for future expenses, savings, and essential purchases.
This may save you headaches in the future.
Smart Moves: Making Rent Like a Boss
You need to understand how you are starting to make financial decisions.
In fact, reading this financial advice for young adults would be helpful.
Understanding rent payments.
Rent payments can be daunting as prices for a single bedroom apartment are $1700/month. 2
Many landlords may tenants to earn at least three times their rent.
Payments are usually due on the first day of the month. Late payments can lead to hefty fees!
Stay organized by setting reminders or setting up auto-pay.
Considering a roommate.
On the fence about getting a roommate? It’s worth considering!
A roommate can drastically cut your living expenses. Half the rent, half the utility costs… that sounds like a sweet deal.
On the flip side, you may have less privacy and there can be disputes.
However, with clear communication and shared responsibilities, it can be a great experience. It’s a great option if your income is tight. Choose wisely!
Opting for second-hand furniture
Furniture expenses can add up quickly, but there’s a savvy solution: opt for second-hand furniture! Yes, it’s cool to be frugal.
In fact, vintage pieces can add character to your home. Perhaps snag a few items from your parent’s home, Buy Nothing Group, or thrift stores. It’s not about being cheap, but about being smart!
You can always upgrade later.
Key Takeaways Before Taking That Leap
Moving out with roommates not only gave me a firsthand experience of independent living but also exposed me to the nuances of financial management. These initial steps helped me understand budgeting and the importance of balancing expenditures with earnings.
Then transitioning into renting my own place, I was armed with the knowledge I gained and was better prepared to face the challenges, creating a smooth transition to living completely on my own.
Checklist before getting your own place
Before making the big move, have you:
Saved enough to cover deposit, rent, moving, and utility hook-up fees?
Started a personal budget, tracking income and expenses?
Drafted a rough spending plan using the 50/30/20 budget rule.
Built an emergency fund?
Discussed potential apartment rental fees and deposits?
Considered recurring expenses and variable expenses?
Weighed the pros and cons of having a roommate.
Looked into second-hand furniture?
Can you comfortably cover living expenses with your income?
Have you accounted for all possible costs? Think of moving costs, utilities, groceries, health insurance, and more.
Have you considered the cost of living in your preferred location?
How stable is your income? Can it sustain your independence long-term?
Check out this first apartment checklist.
Frequently Asked Questions (FAQs)
Before moving out of your parents’ house, aim to save at least $5,000. But, you want to start off financially sound, so aim higher like $10,000. This amount would ideally cover your moving costs, early rent payments, and the setting up of utilities.
Remember, the real magic figure depends on your cost of living and your current income.
Put simply, saving $1,000 a month is excellent!
As an expert, Money Bliss often recommends saving at least 20% of your income each month. If you can stash away $1,000, you’re well above this bar.
Remember, every little helps when working towards financial independence. Check out our 52 week money saving challenge to get started.
Start Saving for How Much Money I Need to Move Out
Taking the leap into independent living can feel daunting. But with careful planning, budgeting, and saving, it’s an exhilarating journey.
The best advice I can give someone who is looking to move out is to plan ahead for the journey in front of you.
Remember, having anything between $6000 and $10,000 saved up is an excellent starting point.
As you navigate your financial freedom, adopt the 50/30/20 rule for managing expenses. Around here we call it the Cents Plan Formula.
Most importantly, stay prepared for life’s unexpected twists with an emergency fund. And don’t be shy to make some smart moves like considering a roommate or opting for second-hand furniture.
The journey towards independence is rewarding and fun – as long as you’re financially prepared. So pop that calculator, get budgeting, and start saving for your own place!
Source
Moving.com. “Moving Cost Calculator for Moving Estimates.” https://www.moving.com/movers/moving-cost-calculator.asp. Accessed October 25, 2023.
Rent Cafe. “Average Rent in the U.S.” https://www.rentcafe.com/average-rent-market-trends/us/. Accessed October 25, 2023.
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Whether you’re moving out of your parent’s house or leaving the dorm life behind, becoming a first-time apartment renter is a big and exciting step. However, if you don’t know the ins and outs of the rental process, the task can seem overwhelming. Luckily, we at Redfin put together a list of 8 key tips to help first-time renters find their perfect first apartment and make the transition as smooth as possible. Whether you’re renting an apartment in Los Angeles, CA, or in Brooklyn, NY, these tips will be invaluable in your journey to securing the ideal rental space.
1. Your budget needs to cover more than just rent
If you’re a first-time apartment renter, knowing how to budget for your first apartment is crucial. Your monthly rent will, of course, be the most considerable expense you need to account for, but there are other one-time and ongoing fees that you should be able to pay. Let’s take a look at these costs more closely.
Initial, one-time costs
Before moving into your new apartment, you should save enough money to pay for the following upfront costs:
Recurring costs
Once you’ve moved into your first apartment, there are several ongoing expenses you’ll need to cover every month:
Rent
Utilities, such as electricity, garbage, water, sewage, etc.
Internet and phone
Parking
Laundry
As a first-time apartment renter, this might be the first time you’re responsible for these types of expenses. The last thing you want to do is misjudge what you can afford because you forgot to factor in these essential components of your cost of living.
2. Make a list of needs, then prioritize them
Start with your dream apartment – what is your ultimate living situation? While you may not end up with everything on your list, it’s essential to understand what you value in your home. Some common needs for first-time apartment renters are:
Functional kitchen
Balcony, patio, or other private outdoor space
Closet and storage space
Proximity to work, nightlife, dog parks, or other amenities
Natural light and direction of exposure
Air conditioning
Building amenities, such as a gym, rooftop, or business center
Once you have your list, prioritize the items from most to least important. This will help you narrow down your choices and choose between similar properties.
3. Ask a lot of questions during apartment tours
There are some things you just need to know when you’re shopping for apartments. You may direct these questions to your prospective landlord, or you might have to do some research on your own. Here is a list of must-ask questions, but you may choose to add others depending on your needs.
How much is the rent?
Are utilities included? If not, how much do they usually cost?
How much is the security deposit?
How do I pay rent and utilities?
Is there a parking fee?
Is the apartment pet-friendly, and if so, what are the associated fees?
Are any deposits or fees refunded at the end of the lease?
Do I need proof of renters insurance?
What’s the application process, and is there a fee?
How long is the lease term?
How often does rent increase and by how much?
What alterations can I make to my apartment?
How is apartment maintenance dealt with?
Is there a property manager?
Am I responsible for any maintenance?
What amenities are available nearby?
Are there any particular policies I should know about?
These questions are just the beginning. You likely have special needs or preferences that should inspire additional questions. Keep a list of these questions with you when touring, along with a way of recording the answers.
4. Know the rental application requirements
Each apartment will have a different rental process. Generally, your process will include some or all of the following:
Fill out an apartment application
Show proof of income
Complete a credit check
Complete a background check
Provide rental history with the landlord’s contact information or a personal reference
Add a co-signer if you have a low credit score or no credit history
Include an optional cover letter
To show proof of income, you’ll likely need to provide your most recent pay stubs. You can also use an offer letter or letter from your employer if you’re moving for work. Many landlords or property management companies want to see that you have a reliable monthly income appropriate for the rent payment. While it depends on the apartment, there is often an income requirement that the renter needs to make 2 to 3 times the monthly rent amount.
5. Clarify the parking situation
Some rentals come with a designated parking area or parking spot(s). If you plan to live with a roommate and you both have cars, are there enough parking spaces to easily accommodate both of you? When there are not enough parking spaces or tandem parking, roommates will often switch off week to week or find another acceptable compromise. If the apartment complex does have parking spaces, be sure to ask if this comes at an additional cost. Parking fees are becoming increasingly common at rental properties.
On the other hand, many apartments don’t come with parking, especially in bigger cities like New York City or San Francisco. In this case, pay close attention to the street parking. The street parking signs will tell you which days or times of day parking is limited or prohibited (usually for street-sweeping or snow plowing). But you should also note how many parking spaces are free on your street— is there plenty of room or are cars packed bumper to bumper? Streets with cars parked close together usually mean that parking is difficult to find.
6. Know the best time of year to rent an apartment
You can’t always control when you need to move, but if you do have flexibility, choosing the right time of year to rent an apartment could have a large impact. If your main concern is price, you’ll want to look for an apartment during the winter months. Typically, most people move in the summer months (college students moving away from home, etc.), so demand and prices are typically highest during this time and lowest in the winter. Keep in mind that while rent prices may be lower, there might not be a large selection of apartment complexes with availability.
On the other hand, if your ideal apartment is your top priority, then moving during the summer may be a better option. Most renters sign 12-month leases in the summer. Therefore, most leases usually also end around that time. This means the highest number of new apartments are coming on the market, so you’ll have plenty of options to choose from. The main downside here is that rent prices will typically be higher, and you’ll need to act fast before the best apartments are off the market.
7. Thoroughly read and understand the lease agreement
As a first-time apartment renter, reviewing your lease agreement is one of the most important steps to getting your apartment. Though the lease may contain complex language, it will outline the most important agreements you’re making by signing it. Here are a few things you should make a note of:
The length of your lease
The pet policy and any special terms (like additional fees)
Deposit requirements and how your deposit is returned
Sub-letting rules
Utility responsibilities
Maintenance procedures
Liens or claims to your property if you don’t pay rent
When in doubt, having your lease reviewed by a landlord-tenant attorney is a great idea. The attorney will be able to catch any illegal provisions, explain how provisions work, point out unfavorable provisions and their consequences, and suggest changes that provide you with a more favorable lease.
8. Get renters insurance
In many cases, carrying renters insurance may be required by your landlord, especially if you’re a first-time apartment renter. Even if it isn’t, it’s still a good idea to have it – regardless of if you’re a long-time tenant or a first-time apartment renter. A renters insurance policy protects you in three significant ways:
Personal property protection: If someone steals, damages, or destroys your personal belongings, you will receive a payout (minus the deductible).
Personal liability: If someone gets hurt in your home, renters insurance will pay for medical bills and lost wages, depending on the terms of your policy. You may also be covered if you end up in a lawsuit.
Loss of use: If your apartment becomes uninhabitable, loss of use coverage pays for your expenses, up to coverage limits, while you live outside your home.
Always be sure to review your policy carefully. It’s a good idea to create an inventory of your personal belongings so that you both have a record of what you own and ensure your coverage limits are high enough to protect you in the event of a total loss. If you are unsure about any part of your insurance policy, speak with your agent.
A final note on renting your first apartment
Searching and finding a perfect apartment rental requires some diligence, patience, and preparation. By following these tips, you can avoid possible pitfalls and make your apartment hunting process as seamless as possible, especially if you’re a first-time apartment renter.
Whether it’s your first apartment or your 10th, finding and renting an apartment is an overwhelming process. You have to consider everything from your monthly income and budget to the ins and outs of the rental application itself. While finding potential apartments is a lot of work, you can simplify it if you’re organized and know exactly what you need to do.
Don’t let the stress of finding and renting an apartment get in the way of your decision to move. We’ll walk you through everything from the rental application to the responsibilities the landlord owns. By following these 10 steps, you’ll figure out how to rent an apartment in no time.
1. Know your budget so you can pay rent
First, it’s important to understand how much you can comfortably afford to pay. Typically, no more than 30 percent of your monthly income should go towards your rent payments, according to the U.S. Department of Housing and Urban Development. For example, if you make $65,000 a year, you’d allocate $19,500 annually — or $1,625 per month — toward rent payments. Use our rent calculator to find out how much you can reasonably afford.
When breaking down your budget, you’ll also need to consider other elements of housing costs. This includes expenses like the application fee, first month’s rent, the security deposit, utilities and renters insurance. These expenses are not usually included in the rent itself so you’ll need to add this into your budget before you start looking for your ideal apartment.
Also, you’ll likely need to run a credit check to find out our credit score, which can influence the rental agreement. Most landlords prefer to rent to people with high credit scores because it’s a good indicator of your financial history. Before you sign the lease or rental agreement, the landlord will run a credit report to ensure you have good credit and can fulfill your financial renter responsibilities.
Once you have your financial ducks in a row, you can start looking for your own place to rent and move on to the next phase of the apartment hunt.
2. Decide if you’ll have a roommate
People have roommates for a variety of reasons. Some people like the companionship that comes with having a roommate. Others choose to live with a roommate for financial reasons. And sometimes, it’s a combination of both.
If you’re worried you can’t afford an apartment on your own, you may want to find a roommate to share the security deposit and monthly rent, utilities and household expenses. Splitting a place with one or more roommates means you could get a bigger apartment in a building with more amenities.
Roommates are also a good option if you have poor credit and need a co-signer on the rental agreement. A co-signer is someone who signs the lease agreement, too, and is legally responsible for paying the rent in full should the other renter not be able to pay the month’s rent. Co-signers should understand their legal and financial responsibility before committing to signing the lease.
Regardless of your reason for wanting a roommate, you should choose someone who is financially responsible and whom you’d be comfortable living with for at least a year. Unless your rental agreement is month to month, you’ll likely be locked into a lease for 12 months.
3. Determine where you want to live
Next on the list of things to do when looking for a rental unit, is to determine where you want to live. You need to decide which apartment complexes to look at in certain neighborhoods and cities.
When making these decisions, consider things like safety, walking distance to work or public transit and how many restaurants, parks or recreational facilities are nearby.
Once you’ve found the location you want to live in, you need to decide what type of place you want to rent and what amenities are important to you. You could rent anything from a studio apartment to a two-bedroom apartment to a single-family home. Check out the property’s amenities, such as an onsite fitness center, laundry, pool, security or parking. Make a list of your wants versus needs. Your rent will likely increase if the property management company offers more amenities and on-site perks.
Make sure you take time to learn about the neighborhood you’re thinking about moving into, as well. Sign up for a virtual tour or make an appointment with a leasing agent to take a walk through the area. This could help you make up your mind about which unit you’d like to rent, especially if a few places are similar in cost or size.
You’ll want to visit the neighborhood during the day and also later at night to determine if it’s a good fit. This way, you’ll get a sense if there’s a bustling café or restaurant scene, whether it’s quiet at night or too rowdy for your taste and how safe it feels.
Generally, you can expect to pay higher rent if you want to live close to major metropolitan areas. However, your transportation costs and commuting time will increase if you move further away — so consider what’s more important to you.
4. Take apartment tours to see your options
The apartment hunt is equal parts exciting and overwhelming. If you’re searching for your first apartment, take the time to see a variety of options before you rent an apartment.
Whether you are taking a virtual tour or a self-guided tour, you’ll want to visit different apartments to find the one that best suits your needs. Try to limit your tours to no more than five at a time. Otherwise, the units will blur together and the process can become overwhelming.
It’s a good idea to snap photos of the exteriors and interiors of each apartment and take a few notes during your tour so you can compare them later. Don’t forget to ask questions about the building as you visit, so you can collect as much information as possible that will help you decide which place works best for you.
One other thing to consider is that your first apartment isn’t necessarily your dream apartment. You want to find a place that meets your needs and budget, so try not to fixate on finding the dream apartment and skip over places that are good choices, too.
5. Line up personal references for reference letters
First-time renters often need to convince landlords they’ll be excellent tenants. Since you may not have a rental history or credit history yet, you’ll need some solid personal references who can vouch for you and help boost your chances of getting the apartment.
You can get reference letters from a variety of people, but typically, references from friends and family don’t impress landlords because their recommendations will likely be biased. Instead, ask someone like your work supervisor who can confirm you’re dependable and trustworthy. Or, ask your former resident advisor if you lived in a dorm to act as your personal reference.
By having these personal references lined up in advance, you’ll be one step ahead of any other tenants who are looking to lease the same space.
6. Fill out an apartment application
In hot housing markets, the first qualified applicant usually wins the apartment, so you’ll need to have everything to fill out an application form to move the process ahead quickly. Make sure to read the apartment application thoroughly so you don’t miss any important line items.
Landlords and property managers determine whether or not you’re a good candidate based on the information on your application forms. They look at things like salary, after-tax income, job history, credit and background checks to help make their decision.
The more paperwork and information you have on hand, the easier this step is. To complete an apartment application form, you will need things like:
Your personal contact information
Your driver’s license
Your personal references
Proof of income and pay stubs
Tax information and tax returns
The name of the co-signer
Your roommate’s name and information, if you have one
Proof of renter’s insurance, if you have it
The non-refundable application fee (these range from $25 to $100, depending on the apartment and the city)
7. Complete a credit and background check
A property management company and most landlords will conduct background checks on you to make sure you’re a qualified candidate for the potential apartment. They’ll look at your rental history to see if you’ve defaulted on loan payments or rental payments to ensure you can pay the monthly rent on time. They’re also using the credit check to see if you have bad credit as this can indicate your ability to pay rent on time. Lastly, they’ll also look to see whether you have a criminal history or not. Any of those things could cost you the unit.
The rental application and credit and background checks are the easiest ways for property management to determine if you can pay rent on time and if you’ll be a qualified, responsible tenant.
8. Review the lease or rental agreement in detail
It’s crucial that you read through the entire lease agreement before signing on the dotted line. Like any contract, this legal document has important information and rules that you have to understand before agreeing to move into the building. Understanding your basic rights as a tenant is part of renting an apartment, too.
Usually, the lease will lay out whether or not they allow things like pets or smoking. It will also outline the tenant-landlord checklist that highlights what you need to do and what the tenant needs to do. This is a good time to confirm which utilities come included in your rent, and how much other utilities cost. Some apartment buildings cover the cost of heat, hot water and electricity, while others also include things like Wi-Fi or cable TV.
Your lease will also detail things like if you get a parking spot and how much you need to pay for parking. It’s smart to ask about past car break-ins so you can understand the safety at the apartment complex, too. Break-ins can increase the cost of your car insurance, so it’s smart to know about the history of parking lot safety. Likewise, ask the landlord about any past property damage. Most apartments will keep a record of them for you to review.
If there are any clauses you don’t understand, ask the landlord or property manager what they mean before, and, if applicable, a co-signer, sign the rental agreement.
9. Pay your security deposit and fees
Most apartment buildings will ask you to pay a security deposit equal to the monthly rent at the same time you sign a lease. This fee will cover any future damage you cause to the unit during the time you’re living there.
You may also need to pay either one month’s rent or both the first and last month’s rent upfront. Some apartments also require additional fees if you have pets. Also, landlords may require you to have renter’s insurance and show proof of payment for that. These fees are in addition to the initial application fee you paid.
Make sure you ask what fees you’re responsible for paying in advance. You want to have them on hand when you’re finalizing your budget and when it’s time to sign the lease. You can bring a debit card, check or sometimes a credit card to pay these fees.
10. Plan your move
Now that all the paperwork is complete — start planning your move. Find out the exact move-in date. And ask your landlord or property manager where the moving truck can park on moving day. Also, find out if you have to reserve an elevator for the day of your move. Some buildings restrict moves to certain days or times, so plan yours accordingly.
Then, book your movers or truck rental, making sure to leave yourself enough time to pack. Contact the utility companies to put the contracts in your name. Then, everything’s turned on once you move into the apartment.
The bottom line
Figuring out how to find an apartment and live on your own means taking care of lots of details. But, if you get the basics taken care of early on, it’s easier to follow your plan and stay organized. After sorting out all the paperwork and moving details, you can enjoy the freedom and fun of having your own unit.
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
A rental agent is your personal guide in the world of real estate rentals. While we often associate real estate agents with home purchases, rental agents specialize in helping you find the perfect apartment or house to rent. They’re the experts who know the rental market like the back of their hand, equipped with a deep understanding of local neighborhoods, rental trends, and available properties.
In this article, we’re diving into the world of rental agents and how they can be the game-changer you didn’t know you needed for your next living space. So, whether you’re a first-time renter or a seasoned tenant, let’s uncover how a rental agent can transform your search for your next apartment or house.
Should you use a real estate agent to find your next rental?
Using a real estate agent to find your next apartment or home offers many advantages that streamline the process and enhance your overall experience. These professionals possess in-depth knowledge of the local rental market, which can help them find properties that align with your preferences and budget. In highly competitive markets such as Los Angeles, New York City, Miami, and Boston, the role of rental agents becomes paramount in the quest to secure an apartment. However, it’s worth noting that rental agents are not exclusive to these larger cities; they are also present in smaller cities, offering valuable assistance to those seeking lease accommodations.
7 key ways a rental agent can help you
Navigating the rental market can be a challenge, but with a skilled rental agent by your side, you’ll have a seasoned expert to guide you. From finding the right apartment or house to handling negotiations and paperwork, here are the key ways a rental agent can make your renting journey a breeze.
1. Tailored property searches
A rental agent will curate a list of rental options that match your preferences, saving you time by presenting choices that align with your needs and budget.
2. Local expertise
With in-depth knowledge of the area, your agent will provide insights into neighborhoods, schools, transportation, and amenities, helping you make an informed decision.
3. Protection from scams
Rental agents prevent you from scams by verifying ownership, checking landlords, and ensuring legally sound leases, creating a safe rental process.
4. Schedule property viewings
Say goodbye to endless property visits. Your agent can schedule and coordinate viewings for you, ensuring you see the most suitable options without the hassle.
5. Communicate with landlords on your behalf
These agents act as intermediaries, communicating with landlords on your behalf to address queries, negotiate terms, and facilitate effective communication throughout the rental process.
6. Assist with lease negotiations
Leave the negotiating to the pros. Rental agents are skilled at securing favorable lease terms, rental rates, and other terms on your behalf.
7. Help you through the application process
Through the application process, rental agents provide the necessary forms, explain requirements, and assist with document submission.
How much do you pay real estate agents?
The cost of a real estate agent for rentals can vary based on factors such as location, market norms, and the specific services offered. Typically, you can expect to pay around one month’s rent or a percentage of one year’s rent. So if you rent an apartment in Tallahassee for $2,000 a month, you could pay anywhere between $2,000 to $2,400 if the agent takes 10% of the annual rent. However, practices can differ from region to region, so clarifying the terms and fees with the agent before entering into any agreements is essential. Consulting with the agent or agency upfront will help you understand the cost structure and any potential fees associated with their services in your market.
Where can you find a real estate agent that works with rentals?
You can find agents through various channels. A common approach is to search on reputable real estate agency websites, where agents often list their specialties and contact information. Additionally, requesting recommendations from friends, family, or colleagues who have recently rented properties can yield reliable referrals. Ultimately, online research, word-of-mouth referrals, and attending local events can help you find an excellent real estate agent to assist you in your apartment or home search.
The bottom line
In a nutshell, rental agents are your go-to resource for a stress-free renting experience. They’ve got your back, whether it’s finding the right place, protecting you from scams, or handling all the paperwork. So, whether you’re on the hunt for your first apartment or your rental dream house, partnering with a rental agent could be the key to a smoother, safer, and simpler renting experience.
Inside: Are you moving into your first apartment? Planning a move can be daunting, but with this checklist, everything will be ready for your bed and bathroom you arrive. From a mattress, pots and towels to cleaning supplies and furniture, this list has it all. This is a huge deal!
Moving into your first apartment is an exciting time!
You’re finally out on your own, and you get to decorate and furnish your space however you want.
But before you can start shopping for all the cute home décor, there’s one very important task that needs to be taken care of first: creating a First Apartment Checklist.
This comprehensive checklist will ensure that you don’t forget any essential items when furnishing your new place. From kitchen supplies to bathroom necessities, we’ve got you covered.
So what are you waiting for? Let’s get started!
My First Apartment Mistakes
Moving into your first apartment indeed marks an exciting milestone in life.
However, it is also a moment of awakening when realizing that filling the apartment with all the necessities is not child’s play. My lesson learned the hard way.
It requires great planning and acute mindfulness of one’s budget. While the thrill of setting up your own place can easily lead to overspending, it’s important to keep the budget in check and be judicious about your purchases.
Here are some aspects to consider:
It’s easy to forget that there’s a huge list of big and small things you’ll still need to buy to fully equip your space. However, the keyword here is “need” and not “want”. I should have been better at differentiating between what is absolutely necessary for your immediate living situations and what can be procured later.
Define what you can spend right away by considering the moving costs and other related expenses. After setting the budget, the next most important step is to stick with it. You will be tempted to stretch your limit, but remember that financial restraint is key.
Moreover, remember that you don’t need to get everything right away, certain things can wait. Spend wisely, and stick to immediate needs. You might be surprised to find out that some items you thought were essential, in fact, can be comfortably lived without.
Your home is meant to give comfort, not financial stress.
The above statement is a lesson that stick with you for a long while. Keeping track of your expenses and making wise decisions can help establish your first apartment without breaking the bank.
Learn is $5000 enough to move out?
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Big Items for Your First Apartment Checklist
You’re finally out of your parents’ house and ready to start your own life. Congrats!
This is an important step when you want to move out at 18.
Moving into a new place is both exciting and daunting. To help you make sure you have everything you need for your new digs, we’ve put together a first apartment checklist of all the big items you’ll need to buy.
This is where to focus your money or look to find free items.
1. Mattress
Living in your first apartment?
Do not underestimate the importance of a good mattress.
It’s the foundation for quality sleep, which is crucial for your health and daily performance. Investing in one is non-negotiable even if budget is a constraint.
Personally, this. is the one item I would say to buy new! Thankfully you can find affordable mattresses now.
2. Bed Frame & Headboard
You may be tempted to skip the bed frame in your first apartment, but it’s a key piece that offers myriad benefits.
In full honesty, I didn’t get a headboard for my mattress until well after I was married. But, it was one small thing that made me happy.
Popular bed frame options vary in price from $60 for a simple metal frame to over $200 for wooden or upholstered models. Make sure to evaluate your needs and budget before buying.
3. Couch
Your first apartment is exciting, and the right couch can really set the tone. It’s not only a seating arrangement but also a place for relaxing, entertaining, and unleashing your personality.
When setting up your first apartment, you might be conflicted about whether to buy a new couch or look for a used one. Here are some factors to consider:
For those living by themselves:
A new couch can be a significant investment, but it is worth the cost if you value personal comfort, hygiene, and aesthetics.
Utilize discount stores to find quality furniture that is within your budget. A new couch often comes with warranties or protection plans that can give you peace of mind for any potential repairs or damages.
Investigate measurements and delivery options thoroughly to ensure your new couch comfortably fits your apartment layout.
If you are planning to live with a roommate:
You can consider getting a used couch. This is a great way to cut costs during a time when budgeting and saving money are important.
To make sure the couch you’re acquiring is clean and pest-free, buy or get it for free from trusted sources. Friends or family are often the best people to approach when looking for used furniture.
Look into garage sales or online platforms like Craigslist for options. However, always inspect the couch thoroughly before purchasing it from these sources.
Whether you choose new or used, ensure that the couch fulfills your needs.
4. End Tables and Lamps
End tables and lamps are essentials you need in your first apartment. They offer functionality along with a touch of class to your space.
There are many reasons why they should be on every first apartment checklist.
Versatility: Side tables can be used in various ways, from serving as a coffee holder, providing a place for books and magazines, or showcasing photo frames and indoor plants. It can also function as an extension of your workspace when you need to create an impromptu office setup.
Convenience: Having a side table next to your bed or sofa allows you to have important items within easy reach. This may include your phone charger, eyeglasses, or remote controls.
Decorative Value: Side tables contribute to the aesthetic appeal of your living space. They come in different styles, shapes, and designs that can complement various types of interior décor themes.
More than likely with lamps, you will notice where you need them the most after you move. So, it is okay to wait and buy them.
5. Dining Room Table
Your first apartment isn’t complete without a dining room table. It’s the multi-tasking hero of your living space, essential for meals, socializing, and possibly working or studying.
Finding the right dining room table for your apartment can be a fun and rewarding experience. However, it may be daunting for some, given the myriad of options available in the market.
Here’s a step-by-step guide to help you find your ideal fit:
Determine the Size Needed: The first step in finding the right dining room table is to measure the space it will occupy. Knowing the size helps narrow down the options and ensures a comfortable fit. Consider the number of people you plan on hosting on a regular basis – that should dictate the size of the table you need.
Consider the Shape: Dining tables come in various shapes, including square, rectangle, round, and oval. Identifying the shape that suits your space and lifestyle is crucial. Rectangular tables are the most common, but circular ones are great for maintaining an intimate dining experience, while an oval one can be a middle ground between a square and a round table.
Decide on Style: Whether you lean more towards a modern, contemporary, or rustic look, there are countless styles of dining tables to choose from. Ensure that the style of the table resonates with the rest of your home decor for a harmonious look.
Remember, choosing the right dining table is a balance of both form and function. Considering these aspects will surely help you find the dining room table that fits your lifestyle and space.
A good friend of mine had great luck finding a dining room table at a Restore resale shop. Something to definitely check out!
6. Kitchenware
Moving into your first apartment often comes with the challenge of equipping your kitchen efficiently.
To help guide you in making thoughtful purchases without breaking the bank, here are some important kitchen items you should consider investing in.
Basic Cooking Equipment: A Starter kitchen at the bare minimum requires at least two pots and a frying pan. These should be supplemented with necessary cooking utensils like a ladle, spatula, whisk, etc. You also need a high-quality knife set, at least one cutting board, and measuring cups and spoons to help you prepare and portion your meals accurately.
Food Storage & Serving Items: Get microwave-safe food storage containers to store leftovers efficiently. Additionally, invest in a good set of plates, bowls, glasses, and coffee mugs.
Countertop Appliances: While these can be a bit costly, consider getting a microwave, an InstantPot, and a coffee maker. These can vastly simplify and speed up your daily meal prep.
These are the basic items for a minimalistic kitchen.
7. Patio Furniture
Patio furniture can be an excellent cost-effective addition to your first apartment. Often overlooked, patio furniture can provide advantages for a first-time tenant:
Getting patio furniture as hand-me-downs or buying used ones can save you lots of expenses.
Plus patio furniture can be easily refurbished or painted to match your apartment’s interior design. You can showcase your creativity and add a personal touch without spending much.
8. Grill
One must-have in your first apartment is undoubtedly a grill. Nothing beats the flavor of a good grill and it’s perfect for friendly gatherings or quiet evenings.
Having a grill can add a sense of fun and adventure to your living situation. It allows for new culinary experiences and outdoor entertaining, especially during warmer months when you can have a delightful barbecue party in your yard or balcony.
Grilling can also act as a social catalyst. Whether it’s a relaxed summer evening cookout with neighbors or a gathering of friends for a sporting event, grilling can bring people together in a fun and casual way.
Thanks to websites like Craigslist, eBay, and Facebook Marketplace, second-hand grills in good condition are often available locally and at a much lower cost than brand-new grills.
9. Storage Items
Stepping into your first apartment, huh? The organization will be your closest ally.
Crisp and neat storage items can help you stay clutter-free and make your space feel like home.
This is something I would wait to buy until you are in your space and know what you need. There are so many storage ideas and organization items.
10. Decor
Making your first apartment feel like home is both exciting and challenging. Decor plays a crucial role, transforming an empty space into a cozy, personal refuge.
You want the decor to reflect your style, but the cost may be more than you can afford.
Enter thrift shopping for some of your favorite items.
You can always splurge on that one item you want!
How do I prepare for my first apartment?
Getting your first apartment can be incredibly thrilling, but let us guide you through a smooth transition.
Before making any purchases, it’s critical to create a budget that takes into account moving costs and other associated expenses.
Additionally, make a checklist of essential items to ensure a smooth move, but remember to prioritize immediate needs as some items may not be necessary initially.
Being prepared and methodical about your approach can help significantly in making your first apartment feel like home. It’s all about spending wisely and sticking to your plan.
First Apartment Checklist for Bedroom
Ready to move into your first apartment and need help setting up your bedroom?
This checklist will ensure you won’t miss any essentials.
Bed: Choose a full or queen-size bed to maximize space.
Mattress: Select the right firmness for your sleep style. Don’t forget a mattress pad and bedding.
Nightstand: You need this to place essentials like a reading lamp and a glass of water.
Dresser: An essential piece of furniture for your clothing storage.
Lamp: A softer lighting option for your bedroom. Don’t forget light bulbs!
Closet Organizers: Invest in baskets or cloth storage cubes for easy organization.
Desk and Chair: A small workspace if your room allows. Opt for a stool or folding chair to save money.
Remember every space is unique, tailor this list to your needs and budget.
First Apartment Checklist for Kitchen
As you embark on your solo living adventure, setting up your kitchen shouldn’t be a brain tease.
Here’s a lifesaver list of must-haves:
Remember, your kitchen is not just for cooking, but for hosting toasts and storing eats. Cheers to your new apartment kitchen!
First Apartment Checklist for Living Room
When setting up your first apartment living room, remember to shop for these essential items:
A Cool Lamp or Two: Lighting is crucial. Pick unique lamps that add both light and character to your space.
Side Tables: Grab a couple; these provide additional surfaces for decorations or mugs of tea.
Storage Solutions: Think TV cabinets or bookshelves where you can neatly store your belongings.
Extra Seating: More seats for more guests.
Window Treatments: Curtains or blinds not only offer privacy but can also tie a room together.
Decorative Pillows and Throw Blankets: For aesthetics and comfort.
Decor Items: This includes wall art, picture frames, coffee table books, houseplants, candles and vases. Make your space you.
Be smart in your selections, ensuring each item marries functionality with aesthetics. Holistic harmony is key in a living space.
Technology for Your First Apartment
In today’s digital era, modern apartments are nearly incomplete without a range of essential tech items.
These add convenience, entertainment, and a sense of security to your cozy abode.
Smart TV: This is essential for entertainment and relaxation. It can be a source of news, sports, movies, and shows that make your apartment a much more enjoyable living space.
Roku Stick: If you opt for a basic TV, then these devices enable you to stream content like Netflix, YouTube, and Hulu directly to your TV. This is much needed if you prefer digital streaming over traditional network channels.
Computer / Laptop: This is useful for work, learning, entertainment, and communications in the current digital era. It helps you stay connected to the world and perform various tasks easily.
Wifi Router: A Wi-Fi router is a must-have in this age as it provides an internet connection for all your devices. It enables you to stay connected to the world, shop from home, stream entertainment, or work remotely.
Chargers: Chargers for phones, laptops, and other electronics are essential. They keep your devices powered up and ready for use at any moment.
Speakers: They enhance your entertainment experience by providing high-quality sound for music, TV shows, and movies. They can also be useful for work or study, for instance when participating in video conferences or online courses.
Thankfully prices have dropped significantly on TVs since I bought my first one!
First Apartment Checklist for Bathroom
One key area to consider is your bathroom – it’s essential to have all the basis to make your daily routines smooth and simple. Here’s what you’ll need:
Cleaning Your First Apartment
Ready to take that first crucial clean sweep in your very first apartment? Here’s how you’ll nail it!
Start with unpacking your cleaning essentials, preferably even before you start arranging your furniture. This will make it easier to spot dust, stains, and dirty spots that are usually hidden.
Now, let’s dig into your basic apartment clean-up kit:
Honestly, these frugal green items are perfect to keep things clean and on budget.
Things you need for an apartment that you wouldn’t think of
Moving into your first apartment is an exciting milestone, but it’s also full of small details that are easy to overlook.
Some essential items might not make it on your moving checklist, leaving you scrambling on your first day in your new place.
Basic Handyman Tools: A Leatherman or small toolkit is essential for assembling furniture and making minor repairs.
Hangers: You’ll need more of these than you think for your wardrobe.
Extension cords and surge strips: You’ll need these to plug in all your electronics in spaces with limited outlets.
Drawer organizers: Helps keep your belongings categorized and easy to find. Especially important in small spaces where efficient storage is key.
Flashlight: You never know when a power outage may happen. A flashlight is a crucial tool for safety and navigation in the dark.
Batteries: Handy for various gadgets like remote controls, flashlights, and smoke detectors.
First aid kit: Accidents can happen anywhere, and having a first aid kit handy can make dealing with minor injuries easier and more efficient.
Light bulbs: Essential for maintaining good lighting in your apartment. You don’t want to be left in the dark when a bulb burns out.
Matches and/or lighters: Useful not only for candles and gas stoves but also a necessity in case of a power outage.
Pen and paper: Although we live in a digital age, pen, and paper are still handy for jotting down quick notes, lists, or reminders.
Fire Extinguisher: Better to be safe than sorry!
Carbon Monoxide Detector: Extremely important to have in your apartment
Duct Tape: It solves every DIY project – while almost any.
Security Cameras: It bums me out completely to add this to the list, but in today’s society it is a must-have.
Renter’s insurance is instrumental for various reasons
It provides financial protection in case of unforeseen circumstances like theft, damage due to disasters like fires, or liability if someone gets hurt in your apartment.
Additionally, considering the value of electronics, furniture, clothing, and other personal belongings, investing in renter’s insurance helps safeguard one’s possessions, making it invaluable, especially for first-time renters.
How do I budget for my first apartment?
Managing your expenses while moving into your first apartment is crucial since it’s usually an expensive endeavor with many large and small essentials needed to fully complete your home.
Having a budget not only helps you to control your finances effectively but also assists in prioritizing immediate needs, avoiding unnecessary items, and managing moving costs and related expenses.
Step 1: Make a Budget
Budgeting is, unquestionably, a crucial strategy to manage your personal finances efficiently, particularly while setting up a new apartment.
Begin by detailing your annual net income.
Subsequently, list down all your essential expenditures, such as food, household supplies, phone bills, car payments, credit card bills, clothing, transportation costs, internet charges, healthcare expenses, school loans, and entertainment.
Don’t forget to add a section for “miscellaneous” to cover any unanticipated expenses.
Make sure your expenses are less than your income.
While rent will be your biggest expense, you want to make sure you can truly afford the amount without going broke.
If you observe that your expenses are relatively high, it’s time to analyze your spending patterns and cut down on unnecessary spending.
Step 2: Save Money
Saving money and living frugally requires strategic thinking and discipline.
Honestly, the simplest thing you can do is to set aside 20% of your income each paycheck. That will ensure you are on your way to becoming financially independent.
Simply remember, frugal living doesn’t equate to deprivation, it’s about making informed choices to optimize your resources.
The 100 envelope challenge is extremely popular!
Step 3: Start a Side Hustle
Side hustles can be a flexible and rewarding way to supplement your income, and they’ve become much more popular in recent years.
Manage your time wisely and ensure the side hustle is something you enjoy or are passionate about. It should be a source of additional income without causing stress or burnout.
Here are ways to make money online for beginners.
First Apartment Tips
Embarking on the journey of renting your first apartment can be both exciting and daunting, hence having some essential tips can be quite handy.
1. Make a list of apartment essentials
A list of apartment essentials plays a crucial role, particularly for first-time movers.
The benefits and significance cannot be overstated. Here’s why:
Prevents Overspending: Moving into a new apartment is already expensive. There are lease deposits, rent due, utility set-ups, and other hidden expenditures that can easily catch first-time movers off guard. Having a list of apartment essentials can keep your spending in check, ensuring that you only purchase what’s necessary and avoid unnecessary or impulsive purchases.
Minimizes Stress: The task of moving can be overwhelming, and missing essential items only adds to the stress. A well-thought-out list can not only help you keep track of what you’ve already acquired but also what you need to purchase or source.
Ensures You’re Prepared and Organized: By carefully creating an apartment checklist, you’re ensuring that you have everything you need in your new home, from cleaning supplies and toilet paper to the necessary items for your furry friends.
Saves Time: A concise and focused list saves you time by clearly stating what needs to be acquired, allowing you to focus on other important matters related to the move.
Follow this approach, and you’ll have a comfy, well-equipped apartment in no time.
2. Consider your budget
Experts advise rent shouldn’t exceed 25-30% of your income. But, don’t forget to include your other costs like food, bills, loans, etc
Remember, your dream apartment isn’t worth it if it’s a financial nightmare. Think smart, save hard, and enjoy your new home’s comforts without breaking the bank.
Learn the ideal household percentages.
3. Research apartments
Researching apartments requires careful consideration of numerous factors such as the proximity to vital facilities like workplaces, grocery stores, hospitals, and entertainment joints.
Try to physically tour potential residences where possible to examine amenities and gauge the atmosphere of the neighborhood.
Don’t forget to make inquiries and view the apartment personally or through a floor plan, all these will help you make a wise decision.
4. Check apartment listings for features and amenities
When searching for the perfect apartment, consider features and amenities that align with your lifestyle.
If there is a sym space, you could eliminate your monthly gym membership.
Just make sure the cost of the upgraded amenities is worth the price tag.
While checking apartment listings, ensure to evaluate the location, amenities, available space, and physical integrity.
5. Think about the size and layout of the apartment
Understanding the size and layout of your new apartment is crucial before you start styling and furnishing it.
Acquire a floor plan from the apartment management, and if possible, tour the apartment physically to note the positioning of rooms, doorways, hallways, and stairwells. Take measurements of these areas and visualize the kind of furniture and fixtures they can accommodate fittingly, taking into account maneuverability around corners as well.
Moving to your first apartment is exciting, yet demands careful consideration of the size and layout.
6. Look for apartments with good security
When you’re hunting for your next apartment, don’t forget to check out its security features. This is crucial for your peace of mind.
Ensure the apartment is in a safe neighborhood, close to amenities like hospitals or public transport.
Ask if the apartment complex has features like controlled access gates, security guards, and CCTV surveillance.
Check the apartment for proper alarm systems, well-functioning locks on doors and windows, and that fire safety measures are in place.
Verify the cell phone reception inside the apartment for any emergency calls.
Lastly, always ensure that the parking area is secure and well-lit.
Remember, your apartment isn’t just a place, it’s your sanctuary. It should feel like one, too.
7. Make sure you get a good deal
Before signing a lease, it’s crucial to ensure the rent price is a good deal.
According to the U.S. Census Bureau, the median gross rent from 2015-2019 was approximately $1,097 per month.
8. Talk to the management and make sure you understand the rules
Get to grips with your apartment’s rules by thoroughly reading your lease. Take note of any restrictions, and don’t fear to ask for clarifications. Data indicates that understanding lease terms significantly reduces tenant-landlord conflicts.
It is important you understand your lease as it is a binding contract.
First Apartment Checklist PDF
Moving into your first apartment is exciting but daunting. The First Apartment Checklist PDF helps simplify the process.
Take it at your own pace—don’t rush. This is your journey to your new home. Enjoy!
FAQ
Moving into a new apartment can be quite exciting yet daunting. It’s crucial to carefully inspect the space to ensure it meets your needs and is in optimal condition.
Check the overall cleanliness. Despite initial cleaning, apartments often accumulate dust while vacant. Ensure you have cleaning supplies handy to tackle any overlooked dirt or grime.
Inspect the utilities. Ensure the availability of necessary technology setups and provisions for all your electronic gadgets. And make sure no wires are hanging from the ceiling.
Verify the safety features. Always have a working lock on the door as well as a well lit entrance.
Examine appliances. Make sure essential household appliances like washers, dryers, and a dishwasher are provided and in working condition.
The comfort and safety of your new apartment rely hugely on these checks.
When determining how much you should spend on rent, it’s generally suggested that your allotment should be no more than 25-30% of your after-tax income.
For instance, if your yearly income after taxes is $40,000 per year, your rent should be about $833-$1,000 per month.
Keep in mind, this amount should cover:
Your rent
Utilities (unless they’re included in your rent)
Rental insurance
It’s essential to create a realistic budget by considering your other necessary expenses like food, transport, healthcare, and entertainment. If needed, find ways to cut some of these costs to afford your dream apartment.
Now Get Moving with your Apartment Shopping List!
In conclusion, creating and managing a first apartment checklist requires a judicious mix of prudence and patience.
It’s an exciting journey of setting up your first independent space but it’s also a test of properly managing your resources without compromising on your basic needs.
It’s crucial to remember that you do not need to get everything at once, and it’s okay to take your time to gradually fill your apartment.
Remember, be mindful of your budget and prioritize based on your specific needs and preferences.
And don’t forget, you’re not just setting up an apartment, you’re creating your own unique sanctuary.
With patience and careful planning, you’ll soon have an apartment that’s not only functionally equipped but also a reflection of your personal style. The experience, in the end, will prove to be as rewarding as it is educational.
Know someone else that needs this, too? Then, please share!!
Moving into a new apartment is exciting but also expensive. There are a lot of costs and fees associated with renting an apartment. Some, like monthly rent and the security deposit, are immediately obvious and expected. But, you’ll also encounter unexpected costs or hidden fees during this process, like move-in costs or needing new furniture.
All the costs involved can stack up quickly, ballooning well past just the cost of the rent. So, how much do you actually need to save toward renting an apartment before moving in? You want to save enough money to cover all costs involved in renting an apartment, as well as standard, day-to-day living expenses. Here are all the costs you need to budget and save for before renting an apartment and how much you should save.
Why do you need to save money before renting an apartment?
Rent money is just the tip of the iceberg regarding apartment costs. Here’s a list of all the upfront costs and expenses your apartment savings fund should include and cover:
First month’s rent and last month’s rent
When moving in, you’ll have to pay the first month’s rent. Many landlords or property managers may also require that you pay rent for the last month, as well, prior to moving in.
Security deposit
To rent an apartment, you’ll also need to put down a security deposit. Security deposits are usually the same amount as one month’s rent, but sometimes they’re less if you have good credit or a co-signer.
Many landlords also require a security deposit if you’re moving in with a pet, better known as a pet deposit.
Application fees
Most landlords charge an application fee for them to consider your rental application. These application fees are usually between $25 and $50 but can get as high as $100. You may also have to pay for a background check screening, which is generally in a similar price range.
Since you’ll likely submit several applications, you should set aside $100-$200 to cover these fees. While generally non-refundable, if they accept your application, sometimes, the application fee gets put toward your security deposit.
Utilities
While not necessary, it’s a good idea to also save for your first month’s worth of utilities. You’ll spend a lot of money all at once during the rental process, so you may as well plan ahead and budget for utilities.
The cost of utility bills like electricity, internet and water varies depending on factors like usage and time of year. But, you can make a rough estimate based on average utility costs.
The average monthly cost of electricity is $115, while the average water bill is $70. Internet usually costs $60 and trash and recycling is $15. Taken all together, that’s $260. So, you should save between $250-$300 for the first month of utilities.
Many apartment complexes include some or all utilities in the rental rates. But, it depends on the apartment complex. In some cases, you’ll need to pay monthly bills directly to the utility companies.
Appliances, furniture and apartment furnishings
If this is your first apartment or you’ve gotten rid of a lot of stuff before moving, you may need to budget for new furniture, décor and other necessities.
Many apartments come with appliances included, but not always. If you choose an apartment with a washer and dryer hook-up but no machine, you may need to set aside money for a washing machine.
How much you should save for these expenses depends on personal needs and preferences. You may only need several hundred dollars if you already have most of the things you need. But if you have a big list of things you buy, it could go up into the thousands.
Insurance and additional fees
Along with application fees, some apartment complexes will also charge apartment fees for things like move-in cleaning or parking fees. You’ll likely also have to get renter’s insurance.
Moving costs
Moving expenses and moving costs are especially important expenses to consider, as they range anywhere from $1,400 to $5,700. Even if you don’t opt for a professional moving company, you’ll still need to pay for a moving truck and moving supplies.
Miscellaneous costs
Now that you have the essentials down, it’s time to account for the assorted miscellaneous costs that pop up during the apartment rental process.
There are tons of little expenses and costs that go into getting an apartment. Moving into your first apartment or even just a new apartment, you’ll have to buy basic items like cleaning supplies and food. If you want cable or to use a specific internet provider, you may have to pay an installation fee.
Overall, there are a million tiny things that you’ll need around your apartment, as well, like a shower curtain or a doormat.
With so many other things to pay for, you also can’t forget regular monthly expenses like car payments as well.
How much do you need to save for your first apartment?
Now, the big question: How much money do I actually need to set aside for an apartment?
Based on the above categories, you should save an amount equal to at least 3-4 months’ rent. That will cover paying rent for the first month, security deposits and last month’s rent. But, how much should that be? The amount of money you should save toward your apartment depends on apartment prices, which, of course, are variable and subjective.
As an example, the national average rent for a one-bedroom apartment is $1,701. That comes out to $5,103 for three months’ rent. You’ll need $6,144 to cover the average rent for a two-bedroom apartment of $2,048.
Remember, that’s just for monthly rent and deposits. You’ll need to set aside even more money for all other living expenses like utilities. Going back to the one-bedroom apartment example, add $260 to that $5,103. Tack on $100 for apartment and application fees and $168 for renter’s insurance. Let’s roughly say $500 for assorted costs like stocking the fridge and buying some new furniture. That comes out to a minimum savings of $6,131.
You should also save more money than you think you’ll need in case of emergencies or unexpected expenses.
How long does it take to save up money for an apartment?
How long it takes you to save up money for your apartment depends on your monthly income and pre-existing expenses.
If you’re a high earner in good financial standing with a high gross income, it may only take a few months to save enough. Even if you don’t make a ton of money, there are ways you can reach your savings goal faster.
How to start saving money for an apartment
Needing to save thousands of dollars for an apartment can seem like a daunting task, especially for young adults who don’t make a ton of money. But, these tips will help you save money toward getting that apartment.
Know what you can afford to pay in rent
Most importantly, don’t bite off more than you can chew when it comes to renting. You need to know how much rent you can afford to pay each month while having money left over for other essentials like food and utilities.
First, check your pay stubs to figure out how much you make each month. You should also know what other expenses you make on a monthly basis. Once you know what you earn, you can calculate your rent.
A good rule of thumb is to only spend 30 percent of your income on rent. Many landlords also require a rent-to-income ratio of one to three. In other words, you need to earn three times more than your rent.
For instance, if you’re paying $1,701 for a one-bedroom apartment, you need to bring in at least $5,670 monthly.
Set up a savings plan
To start reaching your savings goal, get organized. Based on your income and expenses, set up a savings plan that allows you to set aside a certain amount per month. The more you’re able to save each month, the faster you’ll reach your goal.
You can even check with a financial advisor to help you set up a plan and save.
Set up a separate bank account
Open a savings account specifically dedicated to your apartment fund. That way, you won’t spend it and it’s removed from your regular savings and spending.
Cut back on expenses
You can boost your savings and reach your goal faster by cutting back on non-essential expenses like streaming services or magazine subscriptions. If you’re paying for a subscription that you don’t use or need, that’s just wasting money that could go toward your apartment fund.
It’s hard to cut back on fun activities or services, but it’s just temporary. Once you’re settling into your new apartment, you can renew any expenses you took a break from during your savings period.
Shop smart
Along with cutting back on unnecessary spending, you can stretch your budget even more by becoming a thrifty, bargain-seeking shopper. The less you’re spending on things like food, the more you can put into your savings.
At grocery stores, buy generic brands to take advantage of lower prices. You can also buy things in bulk, like toilet paper, to save more. Using coupons or shopping sales are other handy ways to spend less and save more.
For bigger items like furniture, go to thrift stores or garage sales. This option may not work for everyone. Buying second-hand items sometimes means they’re not in the best shape, or it may take a while to find the exact item you’re looking for. But, with patience and persistence, you’ll find good, high-quality items at greatly reduced prices.
In this expensive rental market, you’ll have to save thousands of dollars for an apartment
With high rents and rising prices, it’s getting more and more expensive to rent an apartment. You’ll need to set aside and save thousands of dollars for even a one-bedroom apartment. But, the amount of savings you’ll need does depend on the cost of rent, so you can find more affordable apartments that require lower levels of savings.
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
From rent to the security deposit to utilities to the million other costs and living expenses involved, renting an apartment is an expensive endeavor. Saving up enough to afford everything can seem like a daunting task, especially if you’re not good with savings or it’s your first apartment. But fear not. This complete guide to budgeting for an apartment will give you a framework to follow, allowing you to easily start budgeting and reach your financial goals.
How to budget for apartment expenses in 5 easy steps
While there are all sorts of ways to save, creating or following a budget system will help keep you accountable, motivated and consistent. Here’s how to create a budget and start setting aside money for your apartment. These easy-to-follow steps will help everyone, whether you have to budget for your first apartment and you’re doing this process for the first time or you’re a seasoned renter.
1. Figure out your monthly income
The first step is to determine where you stand financially. While annual income is important, it’s your monthly income that matters the most. This is what dictates how much you can afford to pay in rent and for other necessities.
Looking at your pay stubs or paychecks, you’ll be able to determine your take-home pay. Your take-home pay is different than your gross income because your employer has already deducted things like income tax, payroll tax and social security.
If you’re only paid once a month, you can easily identify how much you make each month. If you get your paycheck every other week, you’ll need to add up your monthly paychecks.
This process is usually easiest for salaried employees, as they get paid a set amount for each pay period. Hourly employees may need to create a rough average of how much they make each month.
2. Determine your monthly expenses
Then, calculate your monthly costs. These are living expenses you’ll pay on a monthly basis like rent, utilities, renter’s insurance, health insurance, food and more.
It’s OK if you don’t have exact figures for all these expenses. If you’re still apartment hunting, you can sub in the average rent for the city or area. You can also estimate things like food. Err on the side of caution and make your expenses higher than you expect.
3. Subtract your expenses from your income to determine what’s left
After determining how much you make and then spend each month, deduct your monthly expenses from your income.
If your projected expenses are higher than your income, you’ll need to go back and see where you can cut costs. Likely, it means you’ll need to spend less on rent.
4. Calculate what you can afford to pay in rent
You should only spend 30 percent of your income each month on rent. Most landlords also require that your income be three times more than the rent. Using your income and expenses, you can calculate how much you should spend on rent using our rent calculator.
5. Choose a budgeting system that works for you
As you start this budgeting process, you’ll find that there are tons of different budgeting methods and systems out there. If this is your first time having to budget for an apartment, you may need to try several different systems before finding the one that works for you.
Nowadays, many people enjoy using budgeting apps to track their savings. These are great options because most are affordable and easy to use, and there are tons of different apps to try. Apart from apps, other popular budget methods include the envelope method and the pay-yourself-first method. But lots of people swear by the 50/30/20 budget method.
The 50/30/20 budget rule
If you’re looking for a monthly budget system that helps you consistently build savings while still covering all your needs with a little extra money left over for fun, the 50/30/20 method is a great apartment budget option.
It essentially works like this. You divide your monthly income into three sections. Fifty percent goes to needs or necessities. These can include paying monthly rent on your current apartment, renter’s insurance, paying the electric bill and other utilities and other essential needs. If you’re saving toward your first apartment budget and still live at home, the costs for your monthly needs probably aren’t too high.
Once you’ve paid for your needs, you still have 50 percent left over. Thirty percent should go toward wants. These are things you want but don’t necessarily need, like streaming services or dining out.
The remaining 20 percent gets automatically put away as savings. This budget ensures you pay for all the things you need and want while still consistently saving toward a goal. If you don’t have a ton of needs or wants, you can put more toward savings. The 50/30/20 rule serves as a framework and you can customize the savings and wants categories how you like. But always make sure that you cover your “needs,” like paying rent.
4 things to budget for when renting an apartment
Your apartment budget should cover the following:
Rent
When moving into an apartment, obviously you’ll need to pay the first month’s rent at move-in time. Some landlords also require that you pay for the last month’s rent upfront, as well.
Security deposit
Your budget needs to include the security deposit, which is usually the same amount as one month’s rent. In total, you need three months’ worth of rent saved before moving in.
Some landlords charge a pet deposit for pets, as well.
Utilities
It’s a good idea to budget for the first months’ worth of utility bills, as well. That includes electricity, water, natural gas, internet, sewer and garbage.
You can save money by finding an apartment complex that includes utilities. Apartment complexes that cover even some utilities like electricity or water are useful money-saving tools. Otherwise, you’ll be paying directly to the utility companies for everything and it adds up.
Miscellaneous fees and costs
On top of all that, you’ll also need to budget for the myriad other expenses that come with renting an apartment. That includes everything from application fees to cleaning supplies to actually furnishing the place. If you’re moving out and this is your first apartment budget, this handy checklist covers many of the things you’ll need.
You’ll also need to budget for moving costs like a moving truck or packing supplies. Sometimes, you can keep moving costs low if you don’t have a ton of stuff or aren’t moving far. But, if you have heavy furniture or are moving to a new city, you may have to pay for professional movers.
Renting an apartment also comes with the occasional additional fee or unexpected expense. It’s recommended to save more than you initially budgeted for to avoid nasty surprises.
What is a good budget for an apartment?
Along with the 50/30/20 rule, the 30 percent rule is a good rule of thumb for when you’ve moved into your apartment. As some monthly expenses like the cost of food can vary, the monthly rent will be one constant. You can use it as a set amount around which to anchor a budget.
Essentially, the 30 percent rule is that you should only spend 30 percent of your income each month on rent. This ensures you have 70 percent of your monthly take-home available for spending on other expenses like food.
How much money should you have saved when moving into an apartment?
There’s no straight answer about exactly how much money you need to save for your new apartment. The amount varies depending on factors like location and the cost of the rent. That’s why you’ll need to use the above steps to personalize the budget to your needs. If you’d like a rough estimate, check out this article about how big you should get your apartment savings.
If you’re saving for your first apartment, it’s always better to overbudget and save even more. On top of rent and other apartment living costs, you’ll need to actually furnish and outfit your apartment for living.
7 ways to save money for your apartment
Here are some other ways you can boost your budget.
1. Downsize
Smaller apartments like studio or one-bedroom apartments are generally more affordable and less expensive than bigger apartments. Plus, it’s always a good idea to live slightly below your means so you can constantly save money and not live paycheck-to-paycheck.
2. Have roommates
If you’re saving toward a two-bedroom apartment but it’s stretching your budget too much, add a roommate to the mix! Living with roommates cuts expenses down and opens the door to creating wonderful memories.
3. Don’t live near the city center
Beware the siren call of the city center. The cost of rent will nearly always be higher closer to the city center, especially in big cities. The promise of living just steps from big city amenities like dining and shopping is strong, but it’s better to live further away in a more affordable housing situation. On the plus side, you’ll have more money to enjoy those urban perks!
4. Set up a separate savings account
If you have the issue of constantly dipping into your savings account, set up a separate bank account. That way, the temptation to touch it is gone.
5. Reduce wasteful spending
While saving, cut back on unnecessary spending so you have extra cash to put toward your budget. Dine out less, cancel subscriptions you don’t need or use and the like. Have cable but don’t use it? Call the cable company and cancel. How about that gym membership you don’t actually use? It’s gone.
You can always take up those habits or wants-based spending again when you reach your goal.
6. Find bargains and deals to spend less
While saving toward an apartment, there are some things you still need to spend money on, like food. You still have to eat and food costs money. You still have to commute to work or get around for errands. But there are ways you can spend less on these activities and items.
For groceries, you can shop at bargain supermarkets, use coupons or buy cheaper, generic brands. Instead of driving everywhere and paying expensive gas prices, take public transportation.
You can also go thrifting or hit up garage sales for bargains and deals on big-ticket items. Need a new coffee table? Skip IKEA and hit up the local Goodwill. How about a couch? Check area neighborhoods for who’s having a garage sale.
7. Keep saving
Even after you’ve reached your goal and moved in, keep adding money to your savings. When the time comes for you to move again or upgrade apartments, you’ll already have a head start. You’re also prepared in the event you need a cushion in case of rent increases.
Whether it’s your first apartment or 10th, budgeting is easy with these tips and steps
It doesn’t matter if you’re a first-time renter or have been renting apartments for years. Creating and sticking to a budget is an important part of the rental process. Not only does it help you get a new place to live, but it teaches good financial practices you can use in other areas of your life. Above all, make a savings plan and stick to it.