Module 5 of 11 14 min
Renting Your First Place
Leases, deposits, roommates, and renters insurance.
Course lessons
Step 1
The lesson
A common guideline: keep rent at or below 30% of your gross income. Many landlords also require income of about 3 times the rent.
Moving in costs far more than the first month's rent. Expect a security deposit (often one month's rent), application fees, utility setup, and basic furniture.
Key term
Lease
A legal contract covering rent, due dates, late fees, length, pets, guests, repairs, and what happens if you move out early. Read all of it before you sign.
- Roommates: on many leases, each roommate can be responsible for the full rent if another doesn't pay.
- Inspection: photograph and note every scratch or stain on move-in day, and send a copy to the landlord.
- Renters insurance: your landlord's insurance covers the building, not your belongings. Renters insurance is usually inexpensive.
Step 2
See it
Moving into a hypothetical $1,100-a-month apartment: first month's rent $1,100, security deposit $1,100, application fee $50, utility setup and deposits $150, renters insurance (first month) $15, basic furniture and supplies $500. Total: $2,915.
- First month's rent
- $1,100
- Security deposit
- $1,100
- Application fee
- $50
- Utility setup and deposits
- $150
- Renters insurance (first month)
- $15
- Basic furniture and supplies
- $500
- Total to move in
- $2,915
Step 3
Real-world example
Can Tasha afford it?
Tasha earns $3,200 a month before taxes. She finds a $1,100 apartment.
- 30% guideline: 30% × $3,200 = $960. The rent is above that.
- 3× rule: the landlord wants $3,300 a month in income. She earns $3,200 — just short.
- Move-in costs: about $2,915 up front.
Tasha finds a roommate for a two-bedroom at $1,500 total — $750 each. Now her rent is about 23% of income, and her move-in costs are cut nearly in half.
Step 4
Try it: does the rent fit?
Enter a monthly take-home pay and a rent, then fill in the rest of a realistic budget.
Your numbers
After taxes — what actually reaches your account.
Results
Total spending
$1,750
67% of income
Remaining
$600
Not yet assigned
Savings rate
10%
$250 a month
- Spending $1,750
- Savings $250
- Remaining $600
| Category | Amount | Share of income |
|---|---|---|
| Housing | $750 | 29% |
| Transportation | $250 | 10% |
| Food | $400 | 15% |
| Entertainment | $150 | 6% |
| Other expenses | $200 | 8% |
| Savings | $250 | 10% |
Educational calculator, not financial advice. Results are hypothetical estimates based on the numbers you enter.
Step 5
Knowledge check
Answer each question, then check your answer to see the explanation. Retake it as many times as you like.
Question 1 of 3
Step 6
Summary
Aim for rent at or below about 30% of gross income, and expect landlords to want income around 3× rent. Budget for a deposit, fees, and setup costs. Read the whole lease, understand roommate responsibilities, document move-in condition, and get renters insurance.
Step 7
What you should remember
- Rent ≤ ~30% of gross income; landlords often want 3× rent.
- Move-in costs can be 2–3 months of rent.
- Read the whole lease.
- Document move-in condition with photos.
- Renters insurance protects your belongings.
Finished the lesson?
Mark it complete to track your progress.