rent calculations

Take your gross income and divide it by 40. That will give you the maximum you may qualify for. Then, figuring a broker fee of 15%, subtract 10% from the maximum number.

Example:

120,000/40=3000

3000*.90=2700

So, while 3K is the maximum you qualify for, $2700 should be the maximum amount you should use when looking for an apartment.

I don't understand why paying a broker's fee would reduce the amount of rent you're capable of paying. Also, does that imply I can afford a more expensive apartment if I don't pay a broker's fee? If so, it seems silly to pay a broker's fee unless I'm getting a 10% better deal than I would get without one.

It's just the broker making darn sure you can pay him before you even cut your first check to the landlord.

broker fee is a one-time, albeit significant and totally stupid, expense - it should not be part of any calculation based on income. Unless of course, you are living paycheck to paycheck with no assets.

I have an idea, find a no-fee by owner listing instead.

brokers will thrive as long as you are too lazy to find something yourself. like a shipowner who is too lazy to scrape the barnicles off his hull.

I don't know why the fee is by default on the tenant. If a landlord is renting a unit through a broker, then a prospective tenant that appears without a broker should not be expected to pay the fee.

Of course, it is all negotiable, but what a crock of s.

jordyn, it doesn't reduce the amount you can afford unless you want it to reduce the amount you can afford. This is what I tell clients for whom the fee is an issue.

Here's a blog post from Naked Apartments that explains it better:

http://www.nakedapartments.com/blog/account-for-fee-in-monthly-rent/

>anyone have any insight into some rent calculations? How much can someone actually afford?

John, how about looking at your paycheck on a net basis. How much is it?
Then consider, how much might utilities be? How much do you need for food? What about transportation - that Metrocard? You are in NYC, how much do you need to enjoy yourself? Do you have healthcare expenses? What about dependants? Daily coffee? And how about putting just a little aside in a savings account for a rainy day.

That's how you figure out how much you can afford. Start with the after-tax paycheck and subtract.

A good rule of thumb is you can afford a week's NET pay as your monthly rent.