Living in a rental house can help you decide whether buying a home is right for you. It can alert you to the responsibilities of taking care of a piece of property and even introduce you to living in an expansive residence that rivals your old cramped apartment. Although this is a viable option to try, spending your entire bank account in order to lease a rental may not be a wise financial decision.
By using up all of your savings to pay for a monthly lease, you may not have enough money to purchase a home. According to Zillow, you should only spend 33 percent of your gross income or your yearly salary divided by 40 on a rental's monthly lease. For instance, if you make $45,000 annually, you should spend no more than $1,125 on rent. But keep in mind that does not include utilities, accommodation rates and renters insurance. To help you stock up some cash for your inevitable home purchase, you should start saving some money. Here are a few ways to cut costs when living in a rental:
Negotiate a cheaper rent
Before you jot down your John Hancock on the lease, try to see if you can knock your rent down by a few bucks. You can start off this negotiation by simply asking to cut down the monthly payments. If they say no to this option, see if you can sign a longer lease. By knowing you will be staying in the residence for the foreseeable future, landlords may feel more comfortable trusting you, thus knocking your price down. If either of these options are a no-go, try to get your utilities included in the rent. By unleashing your inner negotiator, you will be able to save some money.
Get a referral
A little networking can go a long way in making friends with your landlord. If they have other properties or apartments, see if they will give you a rent reduction if you can find a new tenant for them. By getting a referral from friends and filling a vacancy, a landlord might feel inclined to offer you a price reduction.
Look for roommates
Living in a large apartment or home by yourself can result in expensive utility charges and other fees. To help you pay for the cable bill and cut your rent down, look for roommates. Posting a listing on Craigslist or asking friends to move in with you will help pay for your expenses and help you save in no time.
Most renters can find coverage for as little as $30 a month. To compare renters insurance quotes, visit CoverHound today.