Over the recent months, we’ve seen everything from gasoline to groceries and other essential items skyrocket in costs. Coupled with the surging property prices, affordability of housing remains a challenge for many. Current rent rates have also soared, making once comfortable incomes seem inadequate today. If you’re a tenant, you may be questioning how to economize without having to compromise on your living space.
Unfortunately, a significant reduction or a stabilization of rent rates in the near future is unlikely. However, by making certain strategic adjustments, you can save money. Here are some suggestions for economizing while renting a home.
Opt for Budget-friendly Renters Insurance
Insurance constitutes a considerable fraction of our monthly expenditures. Mandatory insurances such as health and auto insurance are unavoidable, but as a tenant, you might wonder if you need any additional coverage. The absence of renters insurance could leave you vulnerable to substantial financial loss if your belongings get stolen or damaged. If you unintentionally inflict damage to someone else’s property, including your landlord’s, you could be responsible for medical expenses or the cost of repairs. Therefore, having renters insurance inclusive of tenant’s liability coverage is crucial.
The bright side is, affordable renters insurance is available. While the average cost is around $15 per month, insurers like Lemonade offer policies as low as $5 per month. Thoroughly research options to ensure the insurance plan fits within your budget.
Consider More Remote Living Spaces
If you desire a sizable, yet cost-efficient apartment, consider residing in a more remote or less populated area, distant from city centres. Due to reduced demand and an ample supply of houses, rents in these regions are typically significantly lower, enabling you to lease a larger space for less. The hurdle with this alternative traditionally is the commute to work. However, with the rise of work-from-home opportunities in 2022, this is becoming a viable choice for many, especially for those engaged in the online gig economy.
Whether this option suits you depends on personal preferences. If you prefer the vibrance and nightlife of the city, the extra room and monetary savings might not seem worth it. But if you’re comfortable with an occasional trip to the city center and enjoy the tranquillity of a quieter area, this could be an ideal arrangement for you.
Negotiate a Lengthy Lease Agreement
If you’re planning a long-term stay in your apartment, you’re in a good position to negotiate lower rates. Most landlords are likely to reduce prices to ensure the occupancy of their property on a long-term basis. Extended leases also offer you the power to control rent increases. On a short lease, landlords have the power to surge prices at each lease renewal.
Given the steady rise in prices for the past year and a half, rents might keep growing. A currently affordable home might not remain budget-friendly a year down the line. By then, finding a rental that is comparable in price to your current home might prove to be a herculean task.
While there are other ways to economize on rent, these often involve compromising on personal space. Bringing a roommate on board can reduce expenditures, but it also translates to sharing your living area. That’s why, to secure a rental that doesn’t break the bank or require you to share, the tips mentioned could come in handy.
