The most important thing about choosing an apartment is whether you can cover rent.
In this post, you’ll learn how to create a simple budget, and what factors to consider when looking at budget-friendly apartments compared to more luxurious apartments.
How To Create A Budget
To determine what type of apartment you can rent, you need to figure out your budget.
First, add up your monthly expenses. Include expenses like:
- Rent
- Electricity
- Gas
- Water
- TV
- Internet
Include some additional expenses such as eating out with friends, buying groceries, investing, and renter’s insurance. Be sure to set aside a little extra in case of an emergency. Plus, add in money you’ll need for a deposit, which may or may not be refundable.
After you have your expenses, add up your income. This may come from jobs you have, loans, student aid, or anything else that’s putting money in your bank account.
Finally, subtract your expenses from your income to see how much money you think you’ll have left over at the end of the month.
It’s wise to keep your housing costs to no more than 30 percent of your income.
Budget vs. Luxury
The following table highlights some of the differences between budget and luxury apartments.
|
Budget |
Luxury |
|
|
On-Campus vs. Off-Campus |
Renting an apartment off-campus is typically less expensive than on-campus. |
Luxury apartments can still be cheaper than dorms. |
|
Commute |
Transportation and maintenance costs for off-campus budget apartments may add up here due to a longer commute. If your apartment doesn’t feature on-site or in-unit laundry, that is another factor in your commute. |
Luxury apartments closer to campus can cut fuel costs. However, luxury apartments further outside the city may be more affordable than even budget apartments in the city. |
|
Shared vs. Private Bedrooms |
Sharing a bedroom with someone will be more affordable. |
Apartment owners will make you pay more to rent a place with private bedrooms. |
|
Pets |
Budget apartments may allow pets, but landlords may also charge you a fee to have the pets. |
Pets may not be allowed in more luxurious facilities, eliminating the fee to have a pet. |
|
Neighborhood |
While not necessarily unsafe, budget apartments may not have as many security features. |
Luxury places may have more security and technology (cameras and key cards, for example) to keep you safe. |
|
Furnishings & Amenities |
Your rent may be lower in an unfurnished apartment. However, you may be better off in a furnished luxury apartment depending on how often you eat out or whether you’re on a meal plan. |
See what your apartment comes with. If it has a fridge, stove, and oven, you may find this a more affordable option than a budget apartment. |
|
What’s Included In Rent |
Some landlords say they include utilities but only provide a small cap. |
Luxury apartments may include all additional bills and utilities so you only have to pay one price. |
|
Roommates |
Adding roommates will decrease the cost. |
Find roommates who can pay their rent in a more upscale apartment. |
|
Recreation |
Include a gym membership in your monthly expenses if your complex or school lacks a recreation center. You may receive a student discount, so be sure to ask. |
Gyms and swimming pools may be included in luxurious settings. |
Now that you know some of the basics about what to expect for budget and luxury apartments, you should have a better idea of the type of place you’ll be able to afford.
