Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Anonymous
Anonymous asked in Business & FinancePersonal Finance · 6 years ago

If I make 1400 a month AFTER taxes, can I rent an apartment for $700/mo?

I'm 18 and looking to move across the country and get a 1 bedroom apartment if this job offer goes through (it's looking good), this will be my first apartment.

I know a lot of people say you need to make 3x the rent (I'm still unsure if this means before or after taxes), and I'm also not sure if they mean that's the "ideal amount" or if landlords literally will not rent to you if you make anything less.

I'm confident I could survive/pay the rest of my bills on $700 (and I have somewhere around 10k saved in various accounts from grandparents for a rainy day. I also have a "part time" hobby selling things online, I've been doing this for a couple years and consistently make between $200-400 a month, sometimes more).

Water, cable, and internet is already included in the rent. Plus, everything including work would be within walking distance so I don't need to worry about gas. I'm also not one to go out and piss money away. I have what I need, getting this job and living on my own are the only important things at this moment.

Thank you for any advice :)

Update:

I should be a little more clear, I have already for the most part calculated my cost of living which is why I'm confident $700 is enough. With the extra $200-400 I make selling online, it'll be even easier. No, I do not plan on dipping into my savings for daily living expenses.

Health insurance - covered under parent

Renters - $15

Phone - $30

Update 2:

Food, toiletries, misc - $300 (which is a little more than what I spend now in a state with higher sales tax. I've been saving receipts for 6 months for everything I bought/needed to essentially live, I feel 300 is more than fair)

Electric/gas - this is the only unknown - but I'm thinking $150 covers it in the harsher months (heating/AC)

Entertainment and clothes are irrelevant. I have before and I can again lived with no extras. I don't see the need to even include these, it's an unnecessary

Update 3:

expense. I have a laptop, TV, and more than enough clothes. I'm very introverted so as I said going out and pissing away money on expensive meals or movies or other crap is not my style.

So that totals around $500. At least $200 left over from work, with another at least $200 from selling online for any miscellaneous expenses. It may seem poor, but it's only temporary. Overtime and increased pay are sure to come.

10 Answers

Relevance
  • A
    Lv 7
    6 years ago

    Not only is the 1400 per month after taxes a bit short, a landlord will usually want first and last months rent plus a security deposit so you might need to come up with $2100 just to move in. Getting the apartment will often require a credit report, if you don't have good credit or no credit, you might not qualify to get the apartment. You would also have the cost of actually moving across the country. As another person mentioned, getting a job offer from someone across the country doesn't sound like a legitimate offer. Think carefully, maybe get something a bit closer to where you are and save up more money and get an apartment closer to where you have resources.

  • 6 years ago

    First of all let me tell you about a job I heard of on tv the other day that was a sham. The guy interviewed everyone for the job, took their SS number and other pertinent information and used it to steal their ID, there never was a job available.

    Now if you'd earn $1400 a month then your rent should be no more than 35% of it, about $490 or less (remember that rent increases every year) should go for rent.

    going across country is silly. Moving to another state that's close, and for a career position by contract would be more sensible.

    you'd have expenses such as rent, elecric, phone, credit cards (appropriate clothing and shoes, comptuter repair), apartment insurance, maybe flood insurance, moving cost, health insurance (requied Obamacare), furniture and necessities, groceries, laundry, lunch,

    When you move away I don't think your parents can claim you on their insurance anymore. Do you have a state license for your business online? And who is paying on your taxes for your business now?

    $1400 a month is poor, you'd need food stamps.

  • 6 years ago

    "3x rent" means you need to make 3 times your rent before taxes. It's not a rule in the sense that it can't be broken, but a landlord would be foolish to go higher in the ratio of rent to income. Personally, I look for income four times pre-tax pay when I rent my condo out.

    $700 a month isn't much when you count in food, clothes, entertainment, savings, electric/gas, phone, insurance (health and renter's), gifts, cleaning supplies, toiletries. It's great that you have an emergency fund, but you shouldn't use that for your daily living expenses. Do a more detailed budget before you accept the job and move.

    Good luck.

  • LILL
    Lv 7
    6 years ago

    You need to make at least $2100 a month, before taxes, to qualify. This is the stand rule that most landlords follow. Some landlords will even require you to make 4x's.

    Between rent, electric, gas, insurance (health/rental/car), food, clothing, phone and basic living needs, you don't come even close to being able to afford a $700 a month apartment.

  • How do you think about the answers? You can sign in to vote the answer.
  • Chris
    Lv 6
    6 years ago

    Depends who you are renting from. Big corporate property management companies will actually ask for 3 most recent pay stubs to see if you can afford to stay there. If they feel you don't make enough they will tell you no.

    Basically renters are huge liabilities, and it's really expensive when renters don't pay rent. There's court fees, litigator fees, lawyer fees, is all very expensive and time consuming. So if they can weed out all the people they think might nor make rent in the future, they will

  • Judy
    Lv 7
    6 years ago

    You're a little light on income for that.even BEFORE tax. And with many landlords, thqaat's a minimum.

  • 6 years ago

    If you budget wisely, it sounds like you can afford it. Don't forget you have to eat sometimes

  • Bill
    Lv 7
    6 years ago

    It depends on the landlord. The large corporate owned units are more strict than the privately owned ones.

  • ?
    Lv 7
    6 years ago

    You probably can make if based on your comments, but I would advise against it. It is too much of your income.

  • Biff
    Lv 7
    6 years ago

    3x gross - it will be tight - you have to figure out what the rest of your monthly costs will be - utilities, cable, internet, food, transportation costs - gas, insurance, car pmt, annual maintenance, health insurance and medical exp, entertainment, eating out

Still have questions? Get your answers by asking now.