There is a surplus of people renting or looking to rent at this time. A lot of that crowd includes college students and college grads so, Millennials.
Researchers have found that many people are spending too much on rent. Not only that, but they are paying more money for less bang for their buck. Statistics show that only 17% of renters are living in their ideal location due to the substantial cost for rent. Renters are also finding that the places that they are already settling for are not even meeting their expectations.
Most of this comes from their desire for particular features, as there are many things to consider when renting a home or apartment. Some basic features that most renters look for include in-unit laundry, air conditioning, and parking. It also becomes frustrating at times because when they finally find a place with parking, there is an additional fee.
Experts say that when renting, only 30% of your income should go towards rent. The other 70% should go to other bills, renters insurance payments, savings accounts, or any other emergency costs. Statistics show that on average Millennials earn about $1,900 a month which means they would have to find a place that is $500 a month. This number is far from realistic, considering the average monthly rent in the US is $1,231 and even more in pricey neighborhoods in bigger cities. However, the number of people living in their ideal location now makes more sense.
So, what are some other ways to tell you are paying too much?
Talk to Neighbors
Talk to the people in your building and ask what they are paying. It also helps to ask friends or coworkers from the surrounding neighborhood what they pay. Just remember to consider differences in size, features, etc.
Check Local Listings
The local listings are no secret and it is a simple way to find and compare rent to places that resemble your own residence.
There are numerous tools online that asks you for your location and other information to determine if you are paying too much.
Experts also recommend the option of finding a roommate or roommates to split up the cost of rent which is popular with the college-aged crowd. Another factor that may help you save on rent is to negotiate the initial offer. Many people do not do this because they are uncomfortable to do so, but it will truly benefit you if you at least attempt to decrease the first price. There are also quite a few ways to save on renters insurance such as installing anti-theft features.
Renting is a huge financial decision and commitment and there are many factors to consider. But, renting also gives you the option for a temporary living solution which is extremely important if you have not settled into one career yet, need to be close to family, or a variety of other reasons. Renting is very helpful.