As a first-time renter, understanding how to budget for an apartment is essential. You may save a lot of money on your first apartment by knowing what you need and don’t need.
The first step is to understand what your monthly income is and what your regular expenses are. This will help you know how much wiggle room you have in your budget for rent. Don’t forget to include the following necessities listed below when creating your budgeting checklist for your new apartment.
Table of Contents
1. Moving Expenses
It’s a one-time cost, generally, the cost may be from $500 to $3000, depending on how far you’re relocating and how many things you have. Be sure to factor in the cost of renting a truck or trailer, packing supplies, and any other associated costs. Meanwhile, better to hire a professional mover.
2. Rent Cost
Your monthly rent amount will be your biggest budget item. However, rather than just assuming you can afford the quoted rent price, take a close look at your current income and debts to get a realistic idea of what you can afford for an apartment. Your apartment budget will be significantly impacted by rent. Depending on the area and state, the average rent for a one-bedroom apartment might range from $1,000 to $3,000.
The cost of electricity can be a significant part of your monthly expenses. The amount you’ll pay will vary depending on the apartment, but you can expect to pay around $100 per month for electricity alone. In some states, you might also have to pay a utility deposit when you move in. Be sure to ask your landlord about the cost of utilities before signing a lease.
4. Water and Sewer
Your water and sewer bill will be a monthly expense, and the cost will vary depending on your municipality. In some cases, water and sewer are included in your rent, so be sure to ask your landlord about the cost of utilities before signing a lease. You may spend an extra $50 to $100 for utilities if your landlord does not include water costs in your rent.
5. Gas and Heating
The cost of natural gas is often included in your rent. The cost will vary depending on the price of gas and your usage, but you can expect to spend around $50 to $100 per month on gas.
6. Internet and Cable
The cost of internet and cable can vary widely depending on the provider and the package you choose. You may be able to get a discount on your internet and cable if you bundle them together. Expect to spend $50 to $100 per month for internet and cable.
Some apartments include amenities in the monthly rent, such as a gym, swimming pool, or parking garage. If your apartment doesn’t include these amenities, you may have to pay extra for them. Be sure to ask about the cost of amenities before signing a lease.
8. Renters Insurance
Renters insurance is often a requirement of the lease agreement. The cost of renters insurance will vary depending on the value of your belongings and the amount of coverage you choose. Expect to spend around $15 to $30 per month for renters insurance.
9. Streaming Services (Netflix, Hulu, HBO Now, Etc.)
If you plan to use streaming services, such as Netflix, Hulu, or HBO Now, be sure to include the cost in your budget. The cost of streaming services can range from $8 to $20 per month.
If you have a car, you’ll need to factor in the cost of parking. The cost of parking can vary widely depending on the location and type of parking. Expect to spend $50 to $200 per month for parking.