With the housing crisis ensuing, renting can prove to be an affordable alternative than mortgages. Living as a tenant can be convenient if you travel a lot or plan to relocate in the near future.
But “Rent” can form a major chunk of your monthly expenditure and often leave you with limited options for other needs. With gasoline and food prices already on the rise, your rental expenditure can leave you with nightmares if poorly managed. Keeping your rent on the lower side can be a win-win situation. You will be left with more savings to enjoy, such as spending a vacation with your family, hanging out with friends or simply securing your financial strength or retirement benefits.
We have devised a simple checklist for you to keep your rental expenditures to a bare minimum:
Selecting the Right Location
Selecting a desirable vicinity can come with its own cost; the more the demand for a particular location, the higher the rent for that area. However, this does not mean that you’ll have to compromise on your safety by opting for an undesirable location. If you want to obtain residence in a trendy location, select a place which is a few miles away. Walking your way is a more cost-effective approach than paying for a costly neighborhood.
Sharing is Good for You
If you do not want to compromise on an affordable and high-priced location, it is better to divide the costs between your roommates. Nevertheless, sharing with roommates is the most affordable and proven method of significantly reducing your rental expenditure. Not only do roommates provide you companionship, they can also help to get your chores done. It is also important to select the right size of apartment: 1 bedroom, 2 bedrooms, or 3 bedrooms. With the right number of roommates, you can even rent a 3-bedroom apartment at modest costs.
Keep an Eye on Your Utilities Expenditure
Utilities can significantly inflate your overall rental costs. But it should be noted that a tenant usually has complete control over utilities expenditures. Making small changes such as investing in energy-efficient resources can save you a lot. Compact Fluorescent Light (CFL) bulbs can consume nearly 70 percent less energy than ordinary bulbs. Other ways of cutting on utility costs are to turn off lights and running water when not in use. Paying bills on time without incurring penalties can also improve your credit score.
Giving a Thought to Your Leasing Agreement
Take your time and negotiate the leasing agreement with your landlord. Persuading him or her to include utilities or parking fee in your rent can also reduce your rent. Inform your landlord if you plan to stay for a longer period of time, this way you’ll be able to reduce monthly rent expenses. Seeking the professional help of a real estate agent can also prove to be worthwhile. Consulting an agent helps you by narrowing down the options to cater to your needs.
Allan is a frugal individual with a strong interest in blogging. He loves writing about high interest savings account and money savings strategies.