The Cost of Renting, Part 1
If you’re a first-timer who just flew the nest, renting your own place is a pretty big step toward independence and the responsibilities of adulthood. With thoughts of late-night parties and new furniture to buy, you may be tempted to choose the biggest and nicest place you find. Wait! Before you sign that lease, pause and take stock of your finances.
First, your rent should always be at most 30% of your net salary. You can’t keep it, if you can’t afford it, and rent isn’t the only thing you’ll be shelling out in the months to come. You should also consider all the other expenses that comes with having your own place. Utilities like water, gas and electricity, which you should include in your monthly household expenses. You also need to consider other “luxuries” you can’t do without, such as a phone, internet, cable or satellite TV, which will add to your expenses. If you’re planning to stay in a place that has monthly association dues, such as a condo or a serviced apartment, you will also have to pay additional for such services as security, administration fees & disposal fees.