Rent Calculator: What Is Rent, Rental Process, Terms to Consider, Lease and Calculation with the Rental Calculator

Let's understand the concept of Rent concerning the Calculator

The Rent Calculator considers renting as an amount of Debt. A person pays this amount to the Landlord for an apartment. The Rent could also be paid for temporary usage of a property. There are various rents: residential, commercial, and economic rent. The context for these rents differs completely.

The term Rent and Lease is used interchangeably. But they differ from each other. A lease means a contract to rent a residential apartment. It determines how much a person pays as per the contract. The contract concludes the duration and all the guidelines laid out by the Landlord. It is all provided in the contract of the lease.

Now let's understand the Rent and its process

Renting a place always comes with various issues. The main issue in renting is the location. As for rural areas, it is easier to find a rental apartment. There are various boards with "Rent." One can even visit a leasing office to find an apartment that can be rented.

Metropolitan cities can have a scarcity of Rent due to heavy population. It takes a lot of effort to find the right rental apartment. Sometimes people looking for rental residential apartments have to visit various websites. Sometimes the agents come into play.

Once the place is vacant, a person must view the place and see if all the factors are profitable in the apartment. Sometimes a third party plays the role of finding the right suitable rental apartment. The fees are either paid by the rental or Landlord to the agent.

The fee is equal to a month's rental amount.

Once an apartment or residential place is finalised, the Renter is asked to submit a rental application. The paperwork comprises all the details of the Renter, like the name, current address, mobile number, licence, and other details in the application form. It also includes financial details such as income and any debts.

The Landlord also considers the Renter's credit score and any criminal history. Once everything is smooth, the Renter and Landlord must decide on a pay. The duration of the Rent, the monthly pay, down payments, and everything is finalised after the paperwork. A lease is then made and drafted on all the mutually agreed terms. It becomes a legal contract between the Landlord and Renter.

Now the Renter can move to the apartment whenever the tenancy starts. It is mentioned in the legal contract.

What is better, renting or purchasing an apartment?

Usually, people always opt to rent an apartment. After this, individuals get the confidence to purchase a house. Renting, as we know, comes with a contract. Contracts do come to an end. So Renter has to go through the process again. So a person can consider purchasing an apartment. One can use the Buy vs. Rent Calculator. It will help decide if a person should purchase an apartment or continue renting.

Factors to consider while renting 

The major part of renting an apartment is to know if renting amount is affordable. Various methods can be checked to determine whether the Rent is affordable. Here the Rent Calculator comes into play. Affordable has a different meaning for everyone. Sometimes the front end debt-income ratio should be 25 percent. For some, it should be 33 percent. The affordability for different people varies depending on their income.

Other things to consider while renting an apartment are.

• Additional Costs- Apart from paying the same Rent every month. There are also other costs apart from the renting costs. Some upfront costs include application fees, insurance, security deposit, and other costs. The recurring utility includes water, gas, and electricity in the Rent. Sometimes renters need to furnish their rental property.
• Location- People usually choose apartments that are close to their workplace. Renters also choose a place close to all their interests, for example, a place with good clubs and hospitals.
• Quality- The Residential rental Property should have good quality. Sometimes it is available on the internet to see the infrastructure of an apartment. One can see when the building was built and renovated. Mostly the pictures by previous renters and landlords are made available on the internet or their website. One can consider all the amenities along with the quality of the property, like gym services, pool facilities, and other available facilities.
• Size-Renters often consider the number of bedrooms, bathrooms, and square foot area. The renters can ensure that the closet space is enough and other things as per the requirement.
• Landlord- Someone who can make it a rental experience or break it completely. Since the Landlord owns the property, he can still impose certain restrictions on the Renter. Maintaining grass length, noise levels, and even rules regarding pets.

Tips to reduce the Rental Amount

Renters in the US need help to afford the monthly Rent. However, it is possible to reduce the monthly Rent in different situations.

• One can still choose to live with their family or friends. With a friend, one can divide the Rent for a while. One can even pay the amount later once financially stable.
• While looking for an apartment, be patient. Take good time and discard all the bad deals. One can opt for a lower rental area.
• You can always negotiate with terms to the lease amount or rental amount. Negotiating with landlords, some offer some work. It can help reduce monthly Rent.
• The best option is to get a roommate. The average two-bedroom apartment usually costs 30% less than one single-bedroom apartment. Some websites help get potential roomies. However, the best option is friends or family members. One who is respectful, clean, shares duties and has a common interest.
• One can live in a mobile home or car. Mobile homes cost higher upfront Monthly Rent.
• The Department of Housing of the US provides rental support. It has certain limitations, and some only qualify. People with a disability or if they are elderly. They get subsidised for public housing facilities.
• The waiting list for this Department's housing procedure takes years.
• The last option could be seeking help from local communities. One can register for all the welfare programs designed for underprivileged people. Here one can opt and ask for housing assistance.

Practical Approach to Renting

1. It is better to get everything in writing while renting. Everything the landlord claims and promises should be given in writing.
2.  Before moving in, take a look at the property thoroughly. A renter can list all the conditions and ask the Landlord to sign while the Renter moves in.
3. Always take pictures of the property and use them to convey its condition. So if the Landlord issues any damaged charges, one can show the pictures.
4. Always keep the rental apartment in good condition. Because at the end of the lease, any repair in the apartment will be levied on the Renter. It will fall under the wear and tear of the Renter.
5. Any fixed lease cannot raise rents on the existing renters. It is during the time of the lease.
6. Check the cell reception and food delivery place. One can check if the food is delivered to the address or not. It can indicate suspicious activity or crime rate in the neighborhood area.
7. Check on the utility services. It can give proper feedback as to how much monthly bills will cost.
8. One can check if there are train stations nearby. It isn't disturbing.
9. Always be on good terms with the landlords. Most of the situations can be solved here. Making monthly and timely payments. Keeping the property in good condition is a factor that can be a way of respecting your Landlord. 
10. It could help in Landlord favor you more and even decrease the lease amount in some cases.
11. Always be good to the neighbors, and they will be more welcoming. 

How does a Rent Calculator work?

A rent Calculator is used to check how much Rent one can afford. Input the following values, and the Rent Calculator gives an approx value of the monthly affordable Rent.

In the Calculator, add

Annual Pre-Tax Income. 

Let's assume it to be= $50000

Monthly Recurring Debt if any.

It could be a student loan, credit card, or other.

Now tap on Calculate. 

The Rent Calculator will determine the monthly Rent per your income and recurring debts.

FAQ's