Most personal finance gurus suggest you keep your rent under 25 to 30 percent of your total budget. But, depending on where you live, that can either be a relatively easy or a seemingly impossible task.
Millions of millennials are spending more than the recommended amount of a budget on their rent, as rent prices remain high and are climbing even higher. For instance, according to Rent Jungle, the average one bedroom apartment in San Francisco costs $3,754. And in New York City? For the same one bedroom, the cost is $3,624, according to the same source.
I know when I moved to the Seattle area recently, rent was $800 to $1,500 more a month than my previous city. And that’s for a one-bedroom loft instead of the two bedroom apartment we used to have.
Regardless, my husband and I researched apartments extensively when planning our move in order to find the best deal without sacrificing many of our priorities. Here are 6 tips we learned when trying to find an affordable apartment.
1) Know your top priorities
First, make a list of everything you know you need in an apartment. These are the non-negotiables and things you cannot live without.
When I was looking for an apartment in Seattle, I was fairly open, but knew my basic requirements. I new I wanted to live in a safe and central neighborhood, within walking distance to everything I needed. I also knew I didn’t want a ground-level apartment and my biggest deal-breaker was an apartment without an in-unit washer and dryer, which was one of my requirements.
By knowing your most basic requirements, you can easily sift through apartments that just won’t cut it for what you need.
2) Downsize if possible
Now that you are just searching for apartments that meet your qualifications, are you having a hard time finding anything decent?
If you are, then it may be time to consider your options. Square footage is a huge determinant of the total cost of an apartment. In fact, while a one bedroom apartment in San Francisco is $3,754, a two bedroom is significantly more expensive, costing $4,567.
The difference in rent may be worth it if you’re searching for a roommate, but for individuals or couples, the extra room may not be worth the cost.
When my husband and I moved to Seattle, we decided to downsize significantly. Our top priority was to live in a central area with a washer and dryer in the unit (a rarity for a large city). To find what we were looking for in our budget, we had to sacrifice the extra room. Overall, we are both just as happy with less space – we just have to be conservative with what we can store.
3) Scour local pages
Don’t just stick to national websites and pages in order to find your apartment – some of the best deals are shared through local channels.
For instance, Craigslist and Facebook both often share posts of individuals looking for a last minute roommate or sublet. While these are last minute, they give you more negotiation power when it comes to signing the terms of your lease. Timing is everything, and it can save you a substantial amount of cash.
4) Consider alternative locations
Location, location, location. It’s the saying every single real estate agent shares. And for good reason. Depending on where you want to live, you could be saving (or spending) hundreds of dollars every single month.
If you’re really looking to save, then you may need to think of locations outside the box. Instead of living downtown, could you live in a cool, up-and-coming neighborhood for cheaper? Or, could you live in a neighborhood closer to work?
You have options, so the key is to be flexible with where you live.
5) Find a roommate
One of the fastest ways to decrease your rent cost is to find a roommate. For instance, let’s reconsider the cost of apartments in San Francisco. With the average two bedroom apartment which costs $4,567 and a one bedroom costs $3,754, it may be worth it to instead find a roommate and save $1,471 a month. That’s an enormous difference! While this is an extremely expensive example, it goes to show how rent can be significantly cheaper when shared.
6) Be content without perfection
When looking for an apartment while on a budget, know that you will have to make sacrifices somewhere. It’s nearly (if not entirely) impossible to find an apartment in your budget at the perfect time that meets every single one of your standards. Instead of looking for perfection, look for potential.
Related:
Have you ever searched for an apartment? If so, how did you save money on your rent?
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Renting a home can be very expensive especially in big cities. For newlywed couples, There is no need for a big house that will take almost half of their monthly earnings. Living in a small and intimate space is more appropriate for them.