Living on campus is not always possible or comfortable. Many students choose to rent a place where there are fewer rules to follow and more private spaces to study. That is not the most financially affordable option; however, sometimes, it might even be less expensive than college housing. It all surely depends on conditions and various housing options, so there are no two exact situations. However, we are sure that some of the following tips will help you with building an effective budget and getting prepared for possible hidden expenses and issues. Let’s get started!
Budgeting and Managing Rent
Off-campus living is all cakes and butterflies until you actually start looking for options and checking is they meet your budget expectations. Some of the house options your agent shows you might be too expensive for you or not good enough to cost that much. When making a decision, pay attention to:
- The placement of your future home for the next few semesters is crucial. The more it takes you to get to your campus, the less suitable it is as a housing option during your college years. You might face situations when you need to get to your campus as quickly as possible. So, it’s better to pick options near your learning institution.
- Rent terms. Duration, rental fees, rent cost – these things should be clearly stated in the contract that you sign. You should also pay attention to a deposit sum and its terms – these deposits may be huge and too hard to get back after the rental period is over.
- The property’s location often tells if it is a good play to live at. Avoid neighborhoods with high criminal rates, too many sight-seeing locations, or situated in secluded areas. Your safety comes first.
- Roommate compatibility. Let’s be honest; we are not living in a TV show where everyone can afford to live in their own apartments. You will most likely share your rent with a roommate or a few of them. Their habits and personalities are crucial as they will most likely determine your relationship and the way your household operates.
Once you get to the point of the cost of the rent in this whole challenging task, you need not only be sure that you afford the rent itself but also be able to live your life and have other expenses. It is better always to plan things like this on paper and consider the following:
Determining Your Income
Your monthly or weekly source of income is what you should be very sure of when renting. It may be your paychecks or parental support; having a stable source and a sum put aside as an emergency fund is important to be sure about your future.
Calculating all of your monthly income will give you an idea of what you can work with. There can be some unexpected expenses or costly purchases – being able to cover them is an important factor. Be realistic about your budget and plan your costs so that you have some spare money just in case.
Calculating Fixed Costs
Fixed costs are the ones that you know will definitely occur in the upcoming period – a month or a week on a regular basis. For example, your rent. It is a fixed cost that you need to prioritize when planning your monthly budget. It will probably be the most expensive cost that you need to cover no mater what. Some landlords allow you to be a little late with your paycheck but it happens very rare. That’s why having the designated sum of money prepared for the payment is crucial.
Other fixed costs might be – internet and cell phone, utilities, etc. These costs should be covered first and the rest of your money can be distributed over other categories of your expenses – groceries, fun, clothes, etc.
Set Money Aside for Emergency Fund
As it was said earlier, having an emergency fund is crucial in case your employer is late with your paycheck or you have to get your laptop fixed. Things happen, and if you can’t be prepared for everything on this planet, you should be at least prepared for a month or two of living on your emergency fund.
Prioritize your fixed costs, expenses like groceries or important items, and emergency funds. Other expenses can be postponed and you might spend less this month so that you meet your budget expectations.
The Unexpected: Hidden Expenses
Beyond the obvious things and costs that you might be putting into your budget, there are also several things that you might not be aware of, especially if you are renting for the first time. Being aware of these possible costs and talking about them with your landlord or agent would help you save yourself from unnecessary stress and worries. You will also be able to plan these expenses and adjust your budget accordingly. So, they might be the following:
Security Deposit
Not everyone is aware of the security deposit that the majority of landlords require you to pay. This is a sum of money that you transfer and which you can get back at the end of your contract if the place is in the same condition as it was before. This means not doing any damage and not making any trouble.
Application Fees
Some agents, property managers, and landlords might be charging an application fee – a payment for submitting your application. This can cost you around $25-$100 and would not be refunded even in case your application is not approved.
Moving Costs
Hiring a company of movers who will get your belongings from one place to another is pretty pricey. Especially in case you are moving with lots of stuff and big furniture items. These costs might add up quickly.
Parking Fees
Living in an apartment complex doesn’t always mean using the parking lot for free. Sometimes you’ve got to pay for parking separately, especially in a big city, which might be pretty expensive.
Maintenance and Repairs
Surely, landlords are often in charge of large repairs, but tenants may be accountable for little maintenance and upkeep. You might need to do some fixes here and there before you can move in. For example, a leaking faucet or some Wi-Fi router repair. It is pretty widespread, so you should be aware of such possibilities.
Conclusion
Renting off-campus while studying in college is a big step and responsibility. You should be very careful when making decisions and planning your budget, so we hope these tips will help you out. The second part of this blog post will be dedicated to subletting and all the stuff that you should know about it. Don’t miss this blog post, and good luck to you!