Best Ways to Save Money as a Renter
Renting has become increasingly expensive in recent years. And for some people, paying rent can feel like a financial hardship. Not surprisingly, it is generally the biggest expense for many each month. Fortunately, there are many things you can do to save money as a renter.
Move to a Different Location
One of the most basic ways to save money as a renter is to find another apartment at a different, cheaper location. Of course, the act of moving itself costs money, but in the long term, it might be worth it if you can save as much as $100 to $200 per month (or more). If you currently have a lease at your current dwelling, remember to wait until it expires before you move — otherwise you could incur hefty fees.
Negotiate When Re-signing Your Lease
When it comes time to re-sign your lease, it’s a good idea to negotiate. For example, if your landlord is raising your rent by $200 per month, you can negotiate to get him or her to lower that number by half. Many landlords are willing to give an inch because they want to keep good, reliable tenants. If he or she isn’t open to negotiation, you might want to say you’re going to look for a new apartment. In many cases, if you have been a good tenant, the landlord will give in. However, you should ensure that you are dealing with a private landlord and not a property management company.
Sign an Extended Lease
Signing an extended lease can help you to save money in the long run. Your rent will remain stable if you sign a lease beyond one year. Generally, the longer your lease, the lower your rent. Plus, you won’t be surprised by a rent increase for a longer period of time, since you’re locking in today’s price.
Pay Your Rent Up Front
Another great way to save money as a renter is to simply pay your entire lease in full up front. If you are able to afford to do this, you may even get a discount from your landlord if you request it. Landlords are willing to offer a discount if it means they get their money up-front. However, it’s important to avoid paying with a credit card as it can put you over your credit utilization ratio and adversely affect your credit score. If you have the means to pay via cash, debit card or check, this is a great way to save on your rent.
Set a Budget and Stick to It
You can really save money as a renter by setting a personal budget for your spending and adhering to it. Be firm about establishing a certain amount of money you will spend on necessities each month, such as groceries. If necessary, you can even choose generic brands when you go shopping if it helps you to stay within that number.
Live in a Home That’s for Sale
It may sound strange, but you can also save money as a renter by living in a home that’s up for sale. Inquire about living and paying rent at a house or condo that the landlord is currently selling. Many landlords are amenable to letting people rent houses they are selling because it allows them to make some extra cash before the property actually sells. However, it’s important to keep in mind that you should keep the place neat and presentable so real estate agents can show it off to prospective buyers at any time. You may also have to move within mere weeks if the property sells quickly. But it could be a good short-term solution while you explore all of your housing options.
Renting is not always easy or cheap. However, using these great tips can help you to save money as a renter.