When looking for a rental home, the first thing we need to be aware of is how much the rent will not bother us

When looking for a rental home, the first thing we need to be aware of is how much the rent will not bother us.

Here are some options on how to most accurately determine the amount of rent:

Each tenant's budget is unique. But to choose your rental home you need to determine the parameters of your capabilities. Always keep in mind that the offers include a part of the landlord for negotiations, ie. look for ads with 5-10% higher rent than the one you are willing to pay.

There is no easy answer to the question "What rent I can afford?"

Experts recommend that tenants spend no more than 25% to 30% of their monthly rental income. That is, if, for example, your household has a monthly net income of BGN 2 000, your rent should not exceed BGN 600 per month.

But as with any rule, there may be an exception for your personal circumstances to allow a higher or lower rent.

Another way to determine the rent you can afford is by following a few basic steps:

1. Мake an account of your entire budget. There are different methods of budgeting, but the 50/30/20 rule is recognized by many financial experts. According to this rule, your budget should be:

50% of your income is for fixed expenses - such as rent, transport, utilities, and groceries; 30% of your income is for dinners out, entertainment, hobbies, sports, shopping therapy; 20% of your income is for repaying debts, loans, and saving for the future.

Using this breakdown, you can see how the 25% -30% rental guide can be changed if your other expenses are different. If utilities are included and you have low transportation costs, you can afford to rent up to 40% of your income.

2. Be realistic about your expenses. When you plan to shrink some parts of your budget to maximize rent, be honest about your lifestyle. If you have to give up your hobby to cover the rent, decide if this is really something without which you can live in harmony with yourself.

3. Add furniture/equipment and other running costs.

Consider any additional costs you will incur after moving. If your last seat came with your roommate's couch, and now you're on your own, you may need to include new furniture in your expenses. In addition to furnishing your new apartment, there will be other one-time expenses for which you will need to have cash:

For example: Deposit - for one or two months; relocation costs; some overlap of the old and new rent and others.

4. Do not include in the payment of rent the use of savings or credit accounts. You may be tempted to take some money from your savings or credit card, but don't. Once you start draining these funds to cover the rent, in time you will be without spare funds in case of emergency.

It is preferable for the rental apartment to be not far from your workplace or to have convenient fast transport. This saves on transportation costs.

If we have been able to help you determine what kind of rent you can afford, then look at our rental offers at https://smartbrokers.bg/bg/estates/for-rent