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We’re almost sure it wouldn’t be such a terrible thing if we could all save money on rent. Today, we share a few practical tips that can save money on your monthly housing, including strategies you can try for better rental rates.
Practical Tips to Save Money on Rent
According to Statista, as of March of 2022, rents increased across all U.S. states. In February of 2023, the average rent of a two-bedroom apartment was 1,320 U.S. dollars, up from 1,282 U.S. dollars the prior year. For the average American, rent accounts for their highest monthly expense.
In the world of personal finance, the general rule is that at max, 30% of your income should go towards rent. For example, if your monthly income is $4,000, according to the 30% rule, rent should be a maximum of $1,200. However, following the 30% rule does not apply to everyone’s financial situation and may not necessarily apply to every person due to outside factors like inflation or job wages.
Due to rents taking up a major chunk of income for the average American, the benefits of reducing rental expenses are sought after. It can free up additional cash to be used elsewhere for saving and investing or as expendable income for fun experiences like travel and dining. With that said, there are a few actions you can take to help you save money on rent.
|Do Your Research and Make a Plan||Negotiating Rent With Your Potential Landlord||Cost-Saving Strategies|
|Be Flexible||Building Good Credit and Rental History||Explore Discounts and Incentives|
Do Your Research and Make a Plan
Rent is nothing to gamble with. After all, it’s typically one of the largest expenses the average citizen may have. For this reason, research and planning are crucial when trying to save money on your rent. First and foremost, we recommend you determine your budget and financial goals.
Understanding where your finances stand plays a major role because it informs you how much money you can realistically spend on housing a.k.a. rent. Essentials like housing, transportation, food, health, and clothing are the things you need to survive in a modern society. Making a plan to distribute your income accordingly will help you keep an affordable lifestyle to enjoy life.
During your research and planning phase, take note of rental market trends and average prices in your area. The more informed you are on your finances and the rental market, the better your decision on where to live. For extra savings on rent, consider alternative housing options like having a roommate or opting for shared housing.
Negotiating Rent With Your Potential Landlord
If you don’t ask, the answer will always be no. Before approaching your potential landlord (or landlady), do your research. Gather information on comparable rental properties in the area, then politely bring your findings to your landlord and express a reasonable request to negotiate down your rent. During your negotiation, highlight your positive rental history and willingness to sign a longer lease to entice a lowered monthly rental rate. While this strategy is not a sure win, it’s still worth the try for possible savings on rent.
Tip💡Explore Discounts and Incentives
- Look for move-in specials or promotional offers from landlords
- Consider renting during off-peak seasons for potential discounts
- Explore rental assistance programs or subsidies if applicable
If your current rent is on the rise, evaluate your space and downsize if possible. Maybe you opted for a two-bedroom apartment to use the extra space for guests, a home office, or a home gym. Spare bedrooms may be a luxury you can live without. Downsizing to a 1-bedroom apartment or loft might be lower on rent and can save you a couple of hundred dollars a month. Additionally, stay mindful of your energy consumption to help keep a low utility bill for extra savings.
Be open to relocating. Rental costs vary depending on the neighborhood or town. Moving to a more affordable city can make a huge difference. Big cities and downtown skyrises with convenient amenities tend to come with a heavy monthly rent.
Relocating to a suburb can save you money. However, moving away is not for everyone due to factors like a permanent job location or child care. It’s worth considering if you have a remote job and if you don’t mind a major change to a different city, county, or state with lower rent markets.
Building Good Credit and Rental History
Lastly, build a good credit and rental history to ensure you always snatch up the best deal on a potential home for rent. A good credit history will show landlords you are reliable and responsible. To the same effect, a prime credit score also shows you’re trustworthy enough to make your monthly rental payments. Why not pay rent and build credit at the same time? With the Bilt Credit Card, it is possible.
With Bilt, you can pay your monthly rent and earn rewards. The Bilt card earns 1x points on rent payments, 2x points on travel, and 3x points on dining. Additionally, it features no annual fee and no foreign transaction fees. There are many ways to redeem points. For example, you can use your earned points towards rent or a future down payment. Other ways to redeem rewards include travel, statement credits, and more.
How Will You Save Money on Rent?
There are plenty of strategies to choose from to save money on rent. Remember, rent prices vary widely across states and cities and with some creative thinking and flexibility, you may come across affordable rents that won’t break the bank. Whether you choose to move away to a more affordable neighborhood or decide on getting a roommate, there are always ways to improve your situation with a little bit of sacrifice. You just have to think outside the box.
Related Article: The Ultimate Guide to Bilt Rent Day
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