€ Commute distance. The further away is from work, the more expensive to commute
€ Utilities - different rental choices have utilities , some do not.
€ Other costs - these can include cable TV, , local taxes, Internet, professional cleaners, etc.
€ Roommates - the more roommates you have, the more individuals to share the household
it's a great idea to calculate the real rent of varied rental options and calculate which actually is the most economical. It will also help you choose whether its worth paying extra for a property with less roomates to share with, or if you're content that the higher price is justified by a better room, for instance.
You can do this by a few simple calculations. Here, we help you build a rent calculator using some simple steps.
Step 1: Property details
First, record how much individual rent it costs per calendar month, and exactly how many roommates you share with. In our example, I'm paying $600 monthly for my rent, plus my I'm sharing with 4 roommates. From this point on, all common house expenses should be divided between 4 people, and you should attribute to youself 1/4 of the expenses.
Step 2: Individual Expenses
Next, you identify you own commute costs. In this case, that's say that my monthly commute expenses are $60. Attribute to yourself the whole commute expenses as they are your expenses.
Step 3: Monthly Common Expenses
Next, list and record all the average monthly household common expenses. :
€ Internet = $20
€ Electricity = $30
€ Gas = $20
€ Cable TV = $30
€ Takeaway = $30
€ Telephone = $20
€ Other = $20
Attribute to yourself 1/4 of all of the monthly household expenses. This works out to become 20+30+20+30+3-+20+20 = $25.75
$25.75 is your monthly share of house common costs.
Step 4: Annual Common Expenses
Next, specify any annual common costs of the household. For instance:
€ local taxes = $1000
€ water = $200
€ professional cleaning which your landlord require = $200
Split these annual household expenses by 12 to get a monthly figure, and attribute 1/4 of that cost to you. This calculates to be ((1000+200+200)/12)/4 = $29.17
$29.17 is your share of the annual household common expenses
Adding up the above mentioned calculations, your per month extras after all the costs are considered are 60 + 25.75 + 29.17 = $114.92
Therefore your real rent works out $600 + $114.92 = $714.92
So for this rental option, you are paying $114.92 in extra expenditures for living there, bringing real rent to $714.92. The extras turn out to be quite substantial, at 19% of monthly base rent. Some possible options to decrease the extras would be if you lived closer to work to reduce commute expenditures, or maybe if you shared with more roommates. However, renting close to work may mean that your starting rent is higher, to watch out for that too!
You have access to this rent calculator and others at Smart-Renter.com. Happy apartment hunting everyone.