*This is a collaborative guest post.
Moving to a new apartment can be exciting. However, it comes with numerous financial responsibilities. If you fail to plan ahead, bills can sneak up on you fast. But the good news is that managing apartment expenses is not as difficult as it sounds. If you have the right budget and a clear picture of your expenses, you can stay on top of your money every month. Continue reading this guide as we will break it down for you.
Understanding Your Monthly Expenses: Rent, Utilities, and More
There are two categories that your monthly expenses will fall into: Fixed Expenses and Variable Expenses.
Fixed expenses are consistent every month. Your rent is your largest fixed expense. It’s the same amount due on the same day every month. There are no surprises. Other fixed expenses can include things like internet, parking, renters’ insurance, etc.
Variable expenses fluctuate month to month. These can include electricity, water, gas, and groceries. The more you use, the more you pay.
There are general rules of thumb when it comes to paying rent. Rent should not be more than 30% of your monthly gross income. If you make $4,000 per month before taxes, your rent should be no more than $1,200.
You’ll hear some folks say 35% is okay, especially if you live in a high-cost city. But the lower you can keep this number, the better, because you have more room to cover your other expenses and save money.
Write down your monthly income. List all the expenses you expect to pay each month. Subtract your expenses from your income. Whatever you have remaining is discretionary money you can save or spend however you’d like. Try using a free budgeting tool like Mint or YNAB. You can even use Microsoft Excel if you want something simple. It’s best to check in with your spending weekly.
If you have any questions, you can always get in touch with your property manager. Responsive Northern Virginia property managers quickly address tenant concerns and repair requests.
What Bills Do You Have to Pay in an Apartment? A Detailed Breakdown
Knowing which bills you have to pay in an apartment helps you accurately budget each month. Renting an apartment will come with some monthly bills to pay. Below is a complete list of bills you should expect to see.
- Rent
Yep, you have to pay this one every month. Don’t be late, or you’ll be charged a late fee of $50 to $150+, depending on your lease agreement. Set up autopay when possible.
- Electricity
Electricity powers your lights, appliances, and air conditioning. Electricity bills during the summer months can skyrocket if you live in warmer climates like Texas. Expect to pay anywhere from $60-$150/month. Turn off the lights when leaving the room. Use energy-efficient bulbs to save on your electric bill.
- Gas
Not all apartments have gas. But if yours does, this is how you’ll pay for heat and sometimes cooking. Heating bills are typically lower during warmer months. Plan on paying around $20-$80/month for gas.
- Water/Sewer
Many landlords include water with rent, but some do not. Make sure to ask if you are responsible for paying your own water bill. If you pay the water bill separately, expect to pay $20-$60+/month for one person.
- Internet
The Internet is not a luxury service anymore. Expect basic plans to start at $30+/month. Higher speeds will cost you $60-$100+/month. Shop around when you move in. Most providers offer discounts when you sign up as a new customer.
- Renters Insurance
Renters insurance is quickly becoming a requirement for new tenants. Whether your landlord requires it or not, get renters’ insurance. If a thief breaks into your apartment or there is a fire or water leak, renters’ insurance will cover your belongings. Renters insurance typically ranges from $10-$20/month.
- Trash and Recycling
Trash pickup may or may not be included with your rent. If it’s not, expect to pay a small monthly fee. Typically, trash services range from $5-$20/month.
- Parking
If you own a vehicle, verify if parking is free or if you have to pay. Having an assigned parking spot at an apartment complex in the city can range from $50-$200+/month.
- Phone Bill
Your cell phone bill is another set price you’ll pay monthly. Phone bills can range from super cheap, $25 (budget phones), to $80+/month for high-end plans.
- Streaming/Subscriptions
Netflix, Hulu, Spotify, and Gym memberships. They all add up! Take inventory of what you’re paying for every few months and cut subscriptions you don’t use or need.
Tips for Saving Money While Living in an Apartment
Understanding your bills is half the battle. Learning how to lower them is the other half.
Reduce Your Energy Usage
Turn your thermostat up a few degrees in the summer and down a few degrees in the winter. Run ceiling fans instead of air conditioning, if you can. Unplug electronics when they’re not in use. Electronics still use energy when they’re plugged in.
Eat Out Less
Dining out is one of the quickest ways to burn through your paycheck. Prepare your meals at home whenever possible. Try prepping your meals for the week each Sunday. You’ll save hundreds of dollars each month by not eating out.
Get a Roommate
Sharing your space with a roommate splits your rent and utilities 50/50. If you don’t mind living with someone, a roommate is one of the best ways to save money on rent.
Negotiate Your Rent
Believe it or not, your rent is negotiable. If you’re a model tenant that pays on time, ask your landlord for a lower monthly payment when your lease is up. Even if they say no, they can’t complain too much if you move out anyway.
Audit Your Bills
Go over your bills every month. Make sure you weren’t overcharged or that your rates didn’t increase. Call your cable/internet or insurance company once per year to ask about lowering your payment. Just because you’ve been with a company for years doesn’t mean they’ll give you a lower rate unless you ask.
Final Words
Renting an apartment doesn’t have to break the bank. Once you get a grasp on your monthly spending, create a reasonable budget. You’ll be in charge of your finances. Know what bills you owe, when they are due, and how much you can cut back. Small changes you make can add up over time.
