New Year, New Budget | How to budget for an Apartment

Looking for an apartment can be daunting, especially in this market. Having a strict budget that you stick to is essential. But that can be the most challenging part, but don't worry; in this blog, we will discuss steps to take to budget for your next apartment. 

Your Income Budget

Figuring out your annual income is a great place to start when budgeting for an apartment. Now, if you are going to live with a roommate, you'll need to budget for their income. When looking at your last year's W2, your salary figure will differ from the amount you bring home each year after taxes.

From there, divide your total yearly income(s) by 12 to get an idea of how much you have available to spend each month.

Monthly Expenses Budget

At Bowman Pointe, we require that your income meets or exceeds 3x your rent amount. In other words, your apartment expenses cannot exceed about one-third of your monthly income. We do this to ensure you can afford the budgeted cost of apartment living and your other monthly expenses.

After figuring out your monthly income, you can list all your monthly expenses. First, you'll start with the essentials like car payments, credit card payments, groceries, gas, etc. Then, you'll add non-essentials like eating out, shopping, movies, etc. We recommend looking at your receipts or credit card transactions to get an idea of how much you spend each month. 

Remember that all these expenses should never exceed two-thirds of your monthly income. You will need some buffer for emergencies and unexpected costs. 

Apartment Fees

When starting your apartment search outside the rent amount, you might need to remember the other fees that go along with it. When looking at apartments, there will always be an application fee. Once approved for an apartment, you will pay for a deposit and any administration fees upfront. If you have a pet, there will be another fee to pay.

Then, you need to include the costs of your utilities and renter's insurance in your apartment budget. To give you an idea of Little Rock market averages, your water, electricity, trash, and other apartment fees can climb into hundreds of dollars each month!

At Bowman Pointe, we put money back into your pocket by including a utility package with your monthly fees. Starting at just $70 a month, we cover the cost of your water, sewer, trash, HDTV cable, wireless Internet, and pest control.

Apartment Searching

Now that you know how much you have available to spend on an apartment each month, you can start searching for your new home!

No matter what search engine you use to find available apartments in Little Rock, you should be able to enter your budget figures and filter the results. Whatever you do, don't look at apartments outside of your budget!

Once you narrow down your apartment options, contact each apartment community to discuss their fees and if they have any specials or discounts.

When these steps are said and done, you will have a much clearer picture of how to budget for apartment living!

If you have questions about which of our apartments may fit your budget, contact us via email or call us at 501-725-9055. We would be happy to help you budget for your apartment search.