When looking for a rental home, cost is often a key consideration. What you
can afford on rent depends on a number of factors: household income, outstanding
debt, utilities and other living expenses. Consider how much debt you are
comfortable with, how important your lifestyle is to you and how much you want
to put aside for the future.
The basic monthly rent is an obvious cost, but many less-visible costs add up
as well. Don't forget to consider the following:
- Are utilities, such as heat, electricity, water, cable television and
Internet connection included? If not, these costs may come as an unwelcome
surprise. Find out which utility companies provide services to that building and
contact each company to see if it can provide an average monthly cost for the
rental location. The exact usage will vary from tenant to tenant and costs
fluctuate, but these estimates will give you a good idea of what to expect as
monthly fees.
- Don't forget to estimate the cost of extras such as laundry and parking,
where these have not been included.
- What about transportation costs? Will your monthly travel costs increase,
decrease or remain about the same at this new location?
- You may need to provide your own appliances. If you have to purchase or rent
these, include them into the total cost of renting.
- Is any form of provincial/territorial rent control in place? If not, what
are the landlord's plans for future rent increases?
- Are there enough bedrooms?
Affordable Or Not?
As a general rule your monthly
shelter - including rent, electricity, heat, water, and municipal services -
should be less than 30% of before-tax household income. However, there will be
circumstance and/or markets where it is difficult to find rental accommodations
that accommodate this. The cost of property insurance, parking, cable, telephone
service, and Internet connection are not included in this
calculation.
Location will often drive a rental search. Prime locations cost more, but
they often offer advantages, including reduced commuting time and expense.
Proximity to work, school, public transit or other amenities helps pinpoint
ideal locations. Other important considerations are safety and proximity to
family and friends. Prepare a list of locations that best match your personal
needs and then, add secondary locations that you would also consider.
When you begin to look at possible rentals, it's important to evaluate the
location as well as the building and living space. Remember to consider the
following:
- Crime level in the area.
- Distance to work and/or school, friends and family.
- Access to public transit and major roads.
- If you have children, are parks and play areas nearby? What about
schools?
- Local amenities: entertainment, recreation facilities, shopping, library,
restaurants.
- Traffic: are the roads busy? What about heavy traffic at rush hour or
seasonal times?
- What is your impression of the general air quality?
- How are the noise levels in the area at different times of
day?
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