Finding the right rental property in Wisconsin is a big financial decision. To avoid future financial stress, it's important to create a budget that matches what you can afford. Here’s a simple guide to help you budget wisely for your next rental.
1. Know Your Income
Experts suggest spending no more than 30% of your gross monthly income on rent. This figure includes rent and additional costs like utilities and fees. For example, if your monthly income is $4,000, your target rent should be no more than $1,200.
2. Account for Additional Expenses
In addition to rent, be sure to budget for:
Utilities: Typically, water, electricity, and internet can add $100 to $200 per month.
Renters Insurance: Expect to pay between $10 to $30 per month for coverage.
Pet Fees: Pet fees may range from $50 to $100 monthly.
Moving Costs: Plan ahead for one-time moving expenses like movers and truck rentals.
3. Prepare for Deposits and Upfront Costs
Before moving in, you'll likely need to cover:
Security Deposit: Typically equal to one month’s rent.
First and Last Month’s Rent: Some landlords may require both upfront.
4. Factor in Location and Lifestyle
Rental prices vary by location. Urban areas like Milwaukee and Madison have higher rents, while smaller towns or rural areas may offer more affordable options. Also, consider other lifestyle factors, such as commuting costs or proximity to amenities, when choosing a location.
5. Plan for Debt and Other Expenses
Be sure to include your monthly financial obligations like loans, groceries, and memberships when calculating how much rent you can afford. After accounting for fixed expenses, the remaining balance is what you have for rent.
6. Build an Emergency Savings
An emergency fund with three to six months of living expenses is essential. This helps cover unexpected costs like medical bills or car repairs, allowing you to avoid falling behind on rent.
7. Get Help from a Property Management Team
Working with a team like Candlewood Property Management, LLC can give you clarity on the full cost of renting, helping you make a more informed decision.
Conclusion
Budgeting for a rental in Wisconsin means understanding your income, accounting for all housing-related expenses, and planning for upfront costs. By following these steps, you'll be better prepared to find a rental property that fits both your needs and your budget.
