If you’re looking for your ideal rental in Cheltenham it’s vital that you work out your budget so that you’re not overstretching yourself and taking on too much of a financial burden.
Rents can vary quite dramatically
Multiple surrounding factors of the property affect the price of rent, and you need to ensure that these align with your lifestyle and overall budget. Considering these important factors can help you navigate through the rental market and discover what price and property is right for you.
There’s a lot of factors which influence how much a property costs to rent each month:
- Location – the property’s location usually has the biggest impact on its monthly rent as tenants will be prepared to pay more for proximity to shops, transport links and schools, as well as cafes, pubs and so on
- The property type – a detached four-bedroomed house is obviously going to cost more than a two-bedroomed flat and a furnished flat is probably going to cost more than an unfurnished one
- Trends in the rental market – the economy will always have an effect on rental rates; for example, if there are more properties than renters, rents may fall a bit
Rental cost guidelines
It’s important to go into your rental search with a budget in mind so that you can narrow down your options to the affordable ones and there’s one big rule of thumb that tenants have found handy for decades – the 30% rule.
The 30% rule says that you should aim to spend a maximum of 30% of your gross monthly income on rent, as any more can strain your finances. Your gross income is your income before tax, so it’s a bit more flexible than it seems at first.
There’s also the under 30% rule
If you’re looking for a more affordable area then you can use 30% as a maximum and aim for spending less than this on rent. You can start to save for a deposit or have a bit more spare money each month to spend on luxuries.
and the 50/30/20 rule
Once you’ve found your Cheltenham rental property and you’re settled in, you can use the 50/30/20 rule. This rule means you use 50% of your income on your needs – rent, food, bills and so on, 30% on your wants (socialising, hobbies, subscriptions) and 20% on savings.
