How Much Rent Can You Rightly Afford?

Assessing your requirements from a rental apartment is easy but what’s not that easy is obtaining all those needs within your budget. Thus, before even thinking of a rental apartment, we insist you should most likely know what your budget is. Calculating your budget is not tough as nails. Here we give you evenly suggestion for measuring your rental affordability.

Not sure how much you should spend for rent? This is the general guideline to assist you resolve what the exact rent against your income.

Ascertain a budget- Assess your income as in salary, bonus, interest, dividends. Expectedly 60% of the earning gets spend on family which includes- food, household stuffs, transport, several policy EMIs. Thus, stretching budget for housing rent might lead to scarcity of emergency funds.
Mathematical solution- On the base of certain assumption monthly property rent should be around 30% of your income. This calculation might vary on man to man basis. For example 20% population of the country spend almost half of their earning on comfortable residential lifestyle.


Monthly rental calculation- There is a 50/20/30 analytical method by which experts calculate average rental affordability.

This goes as following-

• 50% on fixed costs- (Paid monthly/Per annum)

• 30% on every day expenses- ( Shopping/Entertainment or Dine out)

• 20% on economical goals- (Loan repayment/ Insurance premium/ Emergency savings)

The amount that will be left out after all these expenditures will be there for your house rent. It’s exactly the proportionate to the subtracted value of the above said expenses and other relative financial liabilities.

Some additional fees- If you find your rental apartment through an agent. The professional fee of the broker will be added to your expense burden. Commonly they charge something around 8%-15% of entire year’s lease value. It would be an upfront payment during the time of agreement. There will be a deposit to consider the move-in cost also. Then there will be security deposit money payable to the land-lord which is roughly equivalent to a month’s rent, though the same would get refunded during the time of your termination of tenancy agreement. Again if you are moving to any unfurnished apartment, the furniture cost will be added to your outflow.


However, spending less than 30% on rent of your income is a smart lifestyle solution. The modern trend is rather than spending monthly hefty amount on rent choosing affordable urban housing for your well-maintained lifestyle.

Have a look at low budget flats in Kolkata, these lifestyle apartments cost you less than your ever-increasing rental value. The purchase value won’t sit on your savings. You can avail all standard facilities and amenities befitting for your lifestyle.

-LNN (Liyans News Network)

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