If you haven’t rented a home or apartment for a while, we’ve got news for you. It’s different. Once viewed as a money saving alternative for young people getting themselves established and older folks downsizing from a larger home, renting today is neither cheap, nor easy.
If you’re like most renters today, the money you spend on your living situation is your largest monthly expense. That means it has a huge impact on your ability to save and puts oversized stress on your current income. Unlike other household expenses like food and utilities that may rise and fall or have room at the margins to cut back, most people assume the only way to lower their rent is to find a cheaper place to live and move. However, there is hope. Don’t forget that with rent, as in life, everything is negotiable.
Put these strategies to work for yourself and you can start saving without moving to a new spot.
Negotiating a Better Lease
Collecting rent and chasing late payments, making sure units are clean and ready to occupy, and the general overhead of managing properties that will eventually have expensive problems that need to be fixed can make being a landlord an expensive vocation. Taking advantage of opportunities to help alleviate landlord headaches can give you leverage when it comes to the terms of your lease.
If you’re on a fixed-term lease, start talking with your landlord about the terms of your next one at least two or three months before your lease expires. Trying to rent vacant units during the winter and especially around the holidays can be difficult. So, if possible, time your talk so that the landlord must choose between filling a vacant rental during these slow times or working with you on setting the terms of your new lease. Here are some tactics to consider:
1. Sign a Longer Lease
Signing a longer-term lease secures lower rents for you and predictable cashflow for your landlord. If your landlord has a rent increase in mind, suggest that might not be the only or even the most attractive option. Suggest a longer term at the same rate or additional perks like free cable that will allow you to reduce your monthly living expenses to counter the rent increase.
2. Offer to Pay Early
Landlords hate late payments. Suggest a clause in the lease that promises they’ll receive your rent payment before the first of the month or the lower rate you negotiated will automatically be raised. Most people receive two paychecks per month. Suggest making bi-weekly rent payments which will provide relief to your monthly spending and provide steady cashflow for your landlord.
3. Prepay Rent in Bulk Up Front
If you’re in a position to put the cash together, offer to prepay six months or a year’s worth of rent up front in exchange for a lower rental rate.
4. Work for the Property Manager
Can you shovel snow, mow lawns, clean a swimming pool, repair a fence, or tend flower beds? Can you make time to show empty units to interested prospective tenants? Do you have time to be the on-site contact when tenants have a problem. Think about ways that you could provide value to your landlord and suggest trading services for a break in rent.
5. Ask About Referral Fees
If your landlord is willing to pay referral fees for new tenants you send their way, tell them you’ll do it if they apply the fees you collect directly to your rent as a credit.
6. Consider Sharing Space with a Roommate
The easiest way to reduce your rent is to have someone else pay it. You may even look into moving to a larger unit to both increase living space and reduce your monthly outlay. If you have the temperament to share space with someone else, and you have friends with the same financial concerns, having a roommate can be an effective way to reduce your spending. Hey, it might even be fun.
Finding Ways to Save May Mean Getting a Little Creative
Adjusting your expenses and your living situation to a level you feel comfortable with an be a challenge. But even relatively small savings on a huge monthly obligation like rent will add up over time. Whether you stay where you’re at or move to a more affordable address, remember that do have options. Look for ways to offer your landlord value that can also make their life easier. With a little creativity, you can find ways to reduce the financial burden.
Interested in learning more about money saving strategies to help make your life more affordable? Sign up to meet with a Canopy Financial Coach today!