If you’re thinking of moving into a new place, the question “How much should I save for an apartment?” likely sits at the front of your mind. Before signing that lease, you want to make sure you have enough money put aside to make ends meet. Figuring out how much you can afford can feel challenging if you’re new to renting. Even seasoned renters can feel daunted when upgrading their apartments or moving to new cities. Here’s everything to consider when you’re figuring out how much to save for an apartment.
Creating your budget for an apartment
Creating a basic budget can help you understand your income and potential expenses. These steps can help you make your budget:
- Calculate your monthly income
- Calculate your monthly expenses
- Subtract your monthly expenses from your monthly income to see what you have left to spend on your apartment
You might need to recalculate and adjust expectations a few times to make a realistic budget, especially if you’re living independently for the first time without financial help. If you lived with your parents or didn’t have to manage expenses at college, you may need some time to learn how much you’ll regularly spend on things like groceries and gas.
Rental and living costs can vary greatly depending on location. A rent calculator tool that considers where you plan to live can help you calculate how much you can afford for rent each month. Then you’ll have a better grasp on much you need to save before signing the lease on your place.
Calculating your living expenses
Calculating how much to save for an apartment involves more than just your monthly rent. If your rent doesn’t include utilities, factor those costs and other common living expenses into your overall saving plan. Bills that renters typically pay include:
- Rent: The amount you’ll need to pay rent every month should stay the same for the length of your lease unless your lease is month-to-month
- Electricity: Renters usually pay for this utility
- Natural gas: Sometimes renters pay for natural gas, and other times landlords cover that cost on behalf of renters
- Water: Landlords often pay water bills on behalf of renters, though renters may have to pay for water directly in some cases
- Internet and cable: You’ll need to pay for internet and cable if you want these services. Installation fees may also apply, depending on where you live
Deposits, fees, and other costs to consider
You’ll also need to account for some one-time payments when figuring out how much to save for an apartment. Costs you may incur include:
Security deposits
Renters almost always pay a security deposit in addition to the first month’s rent when they sign a lease. Security deposits can vary, but most are at least one month’s rent. You usually get your security deposit back when you move out if you don’t damage the unit or property. However, even if you know you’ll be a model renter, you’ll need to budget for that payment when you first move in.
Pet deposits and pet fees
If you’re living with your pet, you may also need to budget for a pet deposit and other fees. Pet deposits are refundable costs similar to regular security deposits, while pet fees are non-refundable payments you’ll pay for the right to have a pet in your place. You could also pay pet rent with your regular rental payments. Make sure you investigate all related costs if you do plan to have a pet so you can budget accordingly.
Utility deposits
If your landlord wants the utilities in your name, you may pay a deposit for those services. You should get a refund when you move out as long as you pay your utility bills on time. Refunds can also take a few months to a year to process. Try using a utilities calculator to determine how much to save up.
Renters insurance
Many properties require you to have proof of renters insurance before your big move. Even if your apartment doesn’t require this insurance, it’s a good thing to have. It’s pretty inexpensive, usually $10 to $20 each month, and it covers any theft or damage to belongings in your apartment. If you already have car insurance, your provider may offer a bundled policy discount.
Administration fees
A management company or property owner often performs additional checks, such as background and credit checks, once you apply for an apartment. Renters usually cover the cost of these checks, although some companies offer rent specials and waive these fees.
Moving expenses
Don’t forget to save up for your moving expenses. Costs vary depending on whether you have family or friends willing to lend a hand or need to pay for professional movers. You’ll also pay more for a cross-country or international move than moving a few suburbs away.
Tips for saving money for an apartment
Saving money doesn’t come naturally to many of us. If you need a helping hand, these tips can help you increase your savings balance before your big move:
- Pay off credit cards and other debts to reduce interest payments
- Make regular payments into a savings account
- Negotiate your bills, like your internet and cell phone services
- Cancel any subscriptions you’re not making use of
- Consider whether you really need something when you’re tempted to make impulse purchases
- Take lunch from home rather than buying it
- Make a meal plan to use up ingredients before they spoil and encourage you to eat at home more
- Switch to store brands for groceries
- Sell any items you don’t want or need
Whether you’re looking for your first apartment or moving to a new city, saving enough can help you easily afford your rent and other expenses. Remember to consider ongoing payments and one-time costs to create an accurate saving plan. Creating a budget that considers where you want to live, how much you earn, and your monthly expenses can help you figure out how much you can really afford to spend on rent.
Get started on your search and filter only apartments that fit within your budget. Search thousands of affordable apartments for rent on Zumper and get ready for the big move.
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