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Rent Affordability Formula:
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This calculator determines the maximum affordable rent when a guarantor is involved, based on the combined income of both tenant and guarantor. In Malaysia, landlords often require rent to be no more than 30% of combined monthly income when a guarantor is involved.
The calculator uses the following formula:
Where:
Explanation: The 30% rule is a common standard in Malaysia to ensure tenants can comfortably afford rent while covering other living expenses.
Details: Calculating affordable rent helps prevent financial strain, ensures lease approval, and maintains good tenant-landlord relationships. It's particularly important when a guarantor is involved as it affects both parties' financial commitments.
Tips: Enter both guarantor and tenant monthly incomes in MYR. The calculator will show the maximum recommended rent based on the 30% affordability rule.
Q1: Why use 30% as the affordability ratio?
A: 30% is a widely accepted standard that balances housing costs with other living expenses and savings goals.
Q2: Is this calculation specific to Malaysia?
A: While the 30% rule is used globally, this calculator is tailored for the Malaysian rental market where guarantors are commonly required.
Q3: What if my actual rent is higher than this calculation?
A: You may need to reconsider your housing choice, increase income, or find additional guarantors to meet landlord requirements.
Q4: Do landlords always follow this 30% rule?
A: While common, some landlords may have different criteria. This calculation serves as a general guideline.
Q5: Should other expenses be considered?
A: Yes, this is a simplified calculation. You should also consider utilities, transportation, and other living costs when budgeting.