With the world trying to pull itself up, post-pandemic saving is everyone’s priority. These days, it feels like every single item has gone up in price, and our income levels are stagnant. Rent is one of these ever-growing bills, so finding out how to save some money on rent is important.
The extra money you save on rent can go towards other monthly expenses like groceries and car payments and even boost your savings. And who knows, you could even buy your own home in the future.
- A Guide To Renting To Family And Friends
- The Month to Month Lease: Why it Might be The Better Deal
- Which Lease Is Better? Fixed Term or Periodic Tenancy
5 easy ways to save money on rent
1. Know your financial situation
A simple way to track your personal finances and figure out how to save a lot of money on rent is to calculate how much of your income should go to rent. This method is valuable if you are new to renting, trying to rent in a new region, or just feel like your rent takes up the bulk of your income.
If you are bad at math, several online calculators can help you reach your savings goal and avoid unnecessary expenses. You simply enter your annual income, and the ideal rental percentage for your level pops up.
Once you know your finances, you will know if you need personal loans, a low variable rate loan or you can afford the rent on your own.
This information can guide your spending habits and negotiation skills, and you can avoid being upsold into renting a space you cannot afford. It also helps if you have separate savings account from where your rent goes. This way, you have enough money set aside to pay rent without stress.
Keep your rent in a high-interest savings account for the best rates. Remember to live within your means. There is nothing wrong with renting a small studio apartment or getting a smaller room in a shared flat to take pressure off your finances.
A one-bedroom flat in a safe area with payments made on time will help your finances and credit score much more than a 2-bedroom or 3-bedroom flat you sometimes default payments on. If conditions are liveable and safe, stick within your rent limit.
Also, check around for any extra amenities the apartment complex has, as this can help you save. If you spend money on gym memberships and the building comes with a gym, then you don’t need to spend more money on a gym membership fee, and public transport cost is also out of the way.
An upgrade in appliances in your apartment building could mean cheaper utility bills, saving money in the long run. Renters should always do the math where possible to find their best bet.
2. Rent in winter
Winter is the best time for a property search in today’s housing market. Think about it, would you want to deal with the hassle of moving during winter? You probably would not want to face the extreme weather conditions, and everybody feels the same way.
This mentality and other reasons make this season the best time to get a place. New renters can then negotiate better prices with landlords standing in an empty expensive apartment in the cold.
Other reasons why renting in winter is advised include:
Winter is no doubt harsh; however, the cheaper rent makes up for the few hours of discomfort moving in winter brings. It is also a good time to check how well the building’s amenities hold up in harsh weather.
You do not want to rent a place and then find out when it is too late that the HVAC system packs up in winter.
No summer rush
Families looking to switch houses prefer to wait till school is over to avoid the disruption of their children’s education. Universities also get new students during summer leading to an influx of tenants for landlords.
Due to all this, the rental market can get competitive and more expensive. If you can get a place before the summer rush, you will save money when paying rent.
3. Get a roommate
If you have a friend who is considering renting soon, you can save a lot of money by flat hunting together. Roommates help to save costs on rent and other utility bills.
If you do not have a friend to share a room with, you can apply online to find a roommate on different partner sites. However, be sure to vet them before signing any agreements. Also, ask your landlord beforehand and review tenancy agreements to avoid violating your lease.
Do not be afraid to do due diligence on prospective roommates and ask for independent advice to avoid nasty surprises.
We want to create a good savings plan and reduce living expenses, not get evicted. So, endeavour to check any potential roommate or friend for things like:
- A credit card report
- A background check
- And even a security deposit where necessary.
A good roommate can be a blessing, and a bad one can make you spend more than you ever bargained.
4. Do not be afraid to re-negotiate
A piece of general advice is that if you are looking for ways to save money, your rental agreement is always worth negotiating.
If you are happy with your living conditions and see no need to switch apartments, you and your landlord can come to a mutually beneficial arrangement on rent price. Always remember your landlord does not hold all the cards.
Apart from the fact that empty flats equal money lost, leasing to new tenants is always a risk to the landlord. A bad tenant can cause serious problems for the landlord in the same way a bad landlord can make living conditions terrible for the renter.
So, you can arrange for meetings with your landlord. During the meeting, negotiate rent reductions and offer incentives like a longer lease. A good landlord would be more than happy to oblige a responsible tenant as a longer lease means stability, and this way, everybody wins.
But, note that negotiations are easier with a private landlord than with organizations. So, where possible, look for buildings owned by individuals or families.
They can easily waive fees as a sign of goodwill and may not have any strict rules they have to follow.
5. Move to suburbs
One great way to save money on rent is to consider moving to the suburbs. This move can get you the best bang for your buck and grow your savings as houses and flats are cheaper the farther they are away from the city.
You must research the building’s proximity to your current work, your gym membership, and the hobbies and leisure activities you prefer. One last thing is to find out how well connected the transport systems are in that region.
You can get a rental home in the most cost-effective suburb with proper time and research, as it won’t happen overnight. This allows you to pay the least rent while being close enough to the activities and social life you prefer.
Do not cancel out any area in your search, as you might find some hidden gems. Australia is developing fast, and new places are opening up. It is not unusual to find former undesirable areas now fit with your life path.
Like our tips on how to reduce your rent?
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