How to Choose the Right Apartment for Your Budget

Being a renter myself I decided that I would partake in a long sober examination of just what it is we renters pay for when we fork over that check each month. And what are the thought processes that go into deciding what to look for in an apartment.

First up, a bit on leases. Twelve-month leases are the most common, however shorter leases are often available. The shorter the lease, the more you can expect to pay per month. Regular maintenance is included in all lease agreements. If you put in requests for maintenance and your landlord refuses to remedy it, you should consider contacting your local housing agency.

The obvious question to ask when you start apartment hunting is just how much should you be paying for an apartment. The common wisdom is that you should plan to spend approximately 30-35% of your net income on rent. As you might expect, if you spend less on other things then you can afford to pay higher rent. If your other costs plus your rent exceeds your income then you should consider lower rent options.

So what else is all this rent money getting you? Apartments come in wide range of different styles, locations and sizes. All are priced differently. Usually the higher the price the more stuff you are getting.

Most apartments (or other rental properties) include the cost of some utilities. The most commonly included utilities are water & sewer, garbage service, natural gas and heat (for those living in northern climates). Occasionally electricity, cable TV or internet are also offered. Included utilities are easy on the renter as they offer fewer bills to keep track of. Just because a utility is included doesn't mean it's free. The cost of the utility is included in the rent and distributed over all the renters.

Energy efficiency as it relates to climate control varies widely among apartments. I would recommend contacting your local utility companies and getting some information regarding the last year's electrical and/or natural gas usage. This will give you some idea of what it costs to heat and cool a given unit.

As you are considering signing a rental agreement you should think carefully about whether the features of the apartment effectively suit your needs. The first thing you should consider is the size of the apartment. Larger apartments cost more since you are renting more space. However they also cost more to heat and cool. But smaller apartments can feel cramped and claustrophobic. The floor plan can also affect how you perceive the apartment's spaciousness.

You should also consider how close your apartment is to your workplace. Closer apartments cut down on commute time and allow you to save on gas. If you commute using public transportation you should think about how close the apartment is to the bus or train stop. Along similar lines you should consider how close your apartment is to major shopping centers. After all, do you really want to be a 45 minute drive away from the local megamart?

If you are a pet owner or plan to become one you should check if your apartment allows pets and if so, which kinds and how many. Apartments that accept pets often require an additional deposit and/or charge more each month for rent.

Finally, you should consider all of the other amenities offered by the apartment. For instance, clothes washers, dishwashers, patios, fireplaces etc. Keep in mind that while all of these seem nice, you are paying for them via your rent. Therefore, think carefully about whether you want to pay for each amenity offered.

As part of your apartment search you should make a list of the top qualities you want in an apartment and be prepared to live without others. Apartment hunting is usually an exercise in compromise. Rarely do you find an apartment that has everything you could have ever wanted, in the best of all possible locations and at an incredibly affordable price.