Rent Affordability Calculator - How Much Rent Can I Afford?
How does this calculator work?
First, we considered what real estate agents or property managers typically look for when considering a tenant for a rental property. There are many different factors, of course, but one of the main factors is the tenant’s ability to maintain their rent payments.
Many property managers adopt a 30% rule, where they consider the total net income of the household and then take out 30% for rent.
For example, Jane and her family have a total household income of $1800 per week. 30% of that income is $540 per week, which is the approximate, affordable and reasonable weekly rent she should be paying.
Choosing the right tenant from the outset is important to reduce and avoid any ongoing tenancy breaches and disputes.
There can be exceptions to the above, of course, the agent can also take into consideration living expenses, location and market conditions.