Rent is generally increasing more than falling in most places. This results in people asking questions such as, “Am I paying too much for rent?” This article will guide readers on how to save money and identify signs of overpaying rent.
Am I paying too much for rent? A guide to save money (Photo: Florida Atlantic University)
A Guide to Save Money: Recognize the Telltale Signs of Overpaying in Rent
One may question oneself, “Am I paying too much for rent?” In order to ascertain whether you are paying more for your rent than what is necessary, it is crucial to recognize and analyze the various indicators.
Here are the following signs from GoBankingRates that you must recognize when you question yourself: “Am I paying too much for rent?”:
Spend Less Than 30% in Rent
Question yourself, “Am I paying too much for rent if I spend more than 30%?” The answer is no.
You spend too much on your rent if you pay more than 30%; even experts agree on this!
Experts agree that you should keep your rent below one-third of your income and keep up with this rule no matter your landlord’s policy. You must keep in mind that the 30% standard was established when income growth closely matched cost-of-living increases.
The Less Than 30% Rule May Be Impossible in Some Cities
According to GO, the 30% rule in housing costs might be impossible for other cities due to the widening gap between income and rent.
According to the Chamber of Commerce, the least forgiving cities that the rule may not work are:
Miami
New York
Hialeah, Florida
Oxnard, California
Santa Anna, California
These cities are the most challenging bunch due to rent costing from $41,945 being the lowest and Miami having the highest rent with $78,713.
However, there are cities that may work in your favor, and stop asking yourself with the question, “Am I paying too much for rent?”
Chamber analyzed that the best cities for renters are the following:
Frisco, Texas
Seattle
Minneapolis
Wichita, Kansas
Huntsville, Alabama
These places have a range of housing costs starting from $17,537 to $29,546, being the highest cost of rent.
Thinking Like A Landlord May Help For Renters
You may question yourself, “How do I negotiate rent with the landlord?” Putting yourself in the shoes of a landlord can be a helpful approach when trying to answer this question. Will that be easy? Maybe.
Understanding the priorities and concerns of investment property owners may help you in negotiating with the landlords when trying to keep up with the 30% rule.
Tenants planning to stay long-term in the property will be the best bargaining chip while negotiating with the landlords. This will help the stable income for the owner and lower rent for the renter. Additionally, renters can also be paid if they refer friends or family to fill vacant units of the property owned by the landlord.
Finally, having handyman skills to repair and maintain the unit can make you reduce your rent in account for your efforts!
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