How Much Rent is Too Much Rent?

You want what every apartment renter wants: the most comfortablesurroundings you can get for the lowest possible monthly rent.Some of today's newly constructed apartment communities havetaken luxury to an entirely new level. Some complexes have gasfireplaces, TV monitors by the front door, drive-through mailservice, and office equipment for their tenants, among othercreature comforts. Every renter has to consider the importanceof amenities like these. Are they important enough to you tomerit a rent increase of perhaps $200 more than the rent you paynow, at a modest yet affordable complex? While some of usconsider an apartment as just a place to hang one's hat, othersplace a premium on home surroundings. But how do you determinehow much you can stretch your budget -- without ending up in thepoorhouse in the process?One suggestion, provided by Metropolitan Life Insurance Company,is to spend no more than 25 percent of your monthly gross incomeon your rent. For example, if your annual salary is $30,000 peryear, or $2,500 per month, you shouldn't plan to spend more than$625 per month on rent. And although it goes without saying,it's important to remember that the extra money you allocate forrent in a slightly more upscale complex means less money foryour other expenses -- utilities, loan payments, entertainment,food, and most important, savings.Here's a short checklist of factors, provided by Florida-basedApartment Hunter...

...s, that you'll want to consider when checkingout a neighborhood. Of course, some of these factors may meanmore to you than others, and you may want to consider someadditional factors of your own. * Is it close to your place of employment? * Is theneighborhood safe? * Is it close to a good school system? * Isit close to your church? * Is it close to stores, banks and thepost office? * Is it close to public transportation? * What arethe parking regulations (if you own a car)? First-time apartment renters share one thing in common: surpriseat just how many hidden expenses they encounter. Hiring moversand paying your first month's rent only represent two smallpieces of what can be a rather expensive pie. In addition,you're going to be subjected to a credit check, and you'rerequired to prove that your gross monthly income is at a certainlevel, in order to provide your complex with some degree ofsecurity that you can pay your rent each month. So if you'veoverestimated your financial abilities in the past, eitherfailing to make rent payments or credit-card payments, now isthe time when that history could come back to haunt you. Here'sa brief run-down of some of those hidden expenses -- andpre-move procedures -- of which many renters either aren'taware, or that they overlook in the excitement and bustle ofmoving:Security deposits. Security deposits range from $100 to a fullmonth's rent; the average deposit is approximately $...

...250. Someapartments require separate deposits for roommates. Creditapplication fees are generally $10 to $35.Verifiable income. Verifiable gross monthly income is at leastthree times the monthly rent. For example, a rent of $500 wouldrequire a minimum of $1,500 gross monthly income.Credit check. A credit check will be conducted by the apartmentcommunity or management company representing the community.Rental history. Any previous rental history will be verified,and mortgage payments may be included as rental history.Additionally, some communities are also conducting criminalbackground checks.Leases. All apartments require a written lease. Lease termstypically are seven to 12 months. Most leases are written for 12months. Shorter lease terms and month-to-month options often areavailable at premium rates.Utilities. You rent will often include sewer, water, trash, andpest control. Gas and electricity are almost always paidseparately by the tenant.Pet deposits. Although many apartment complexes allow pets, theyrequire residents to pay dearly for the privilege of setting uphouse with Fido. Pet deposits are stiff, and tenants are chargedper pet. Deposits range anywhere from $100 to $300 per pet, andeither all or a portion is nonrefundable. Some complexes chargeadditional rent for pets -- on top of the deposit. Pet size iscommonly restricted to 20 pounds and 12 inches in height,although some communities do allow larger pets.