Saving Some Money on Apartment/ House Renting

Renting a home or apartment is an issue of broad interest. That’s because, whether you’re still in school or not long removed, chances are fairly good that you’re renting, are thinking about renting, or, at the very least, are giving some thought to changing a renting arrangement. Obviously, this article can’t go into the particulars of all sorts of rental situations if nothing else, market conditions are drastically different across the country but we can touch on some major points to help with your rent and ensure that you spend your rent money wisely, protect your interests as a tenant, and, equally important, look to the future when, someday, the only landlord you’ll have will be yourself.

Perhaps the most important bit of advice about advantages of renting a house or apartment is always to try to rent less than you can afford. Unfortunately, this can go against human nature; after all, if you can afford a $1,000-a-month apartment in the chic part of town, why spend less on a place that may not be nearly as nice or in as good a location? There’s a powerful reason: If you spend less on your rent, you can start pocketing the difference and saving extra money for something else. Remember, unlike other types of purchases any goods, renting doesn’t actually buy you anything you can call your own, except for a place to crash for 30 more days. Unlike home ownership, renting an apartment doesn’t take anything off your income tax and, unlike buying a car, renting doesn’t confer ownership, payment by payment. In terms of what the money is really doing for you, renting is akin to setting a match to it.

That’s why it behooves you to save on how much you spending too much money on rent. Start by going back to what we discussed about setting up the important of budget. On the basis of what you’re money spending, figure out how much you can afford on rent, and then try to trim that figure back some. Stash what you save in a money market fund or, if you’re looking at building up for a long-term goal, choosing a mutual fund. This doesn’t mean you should have to live in some rat trap to save a few hundred dollars every month, but give some thought to going with less than you can actually spend. If you live in a metro area where rentals are exorbitant, consider a roommate or two so that you can share housing costs and other expenses. Ultimately, the money you save can go toward something a bit more permanent, such as a car, furniture, or even a place of your own.

Once you’ve found a place you like, be prepared to convince your would-be landlord that you’re the ideal tenant. Have ready materials to document that you’re financially able to pay the rent you agree on (these can include such things as bank statements and pay stubs). Moreover, have current references both on paper and via phone ready if the landlord asks for them. A lot of landlords ask for references and never bother to follow up on them, but most do to get a feel for the sort of person (and tenant) you’re likely to be.

Give careful thought to the length of the lease you agree to. Many renters think that a long-term lease provides security and it can, to some degree but particularly lengthy leases can work against you if you have to move before the lease expires. In many cases, even if you move out of a house or an apartment, you could still be liable for paying the remainder of the lease if the landlord can’t find a replacement tenant. By the same token, a month-to-month lease offers renters the most freedom in leaving a place (you usually have to give only one month’s notice) but also gives the landlord the greatest leeway to terminate a lease (or, for that matter, hike the rent). So try to gauge realistically how long you will likely want to stay in your rental don’t make it so short that your month-to-month situation becomes tenuous but also don’t make it so lengthy that you’re compelled to gut it out in a place you would otherwise gladly have left long ago.

Make certain you read your lease agreement carefully before you sign it. As with other parts of our financial situation, we’d all be horrified to admit just how often we sign off on something of significance without first giving it careful consideration, but don’t make that mistake with your lease. Needless to say, it covers the provisions you’re going to have to live with as long as the lease is in force. In addition to the monthly rent, watch for issues such as repairs (in some cases, renters assume a portion of financial responsibility for fixing anything that breaks in the rental, whether or not the problem was their fault), size of your security certificate deposit (obviously, less is better), how soon your landlord has to return the deposit after you vacate (depending on where you live, this can range all over the place), the acceptability of pets (some landlords require an additional security deposit if you want one), and the various reasons that a lease can be terminated.