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Whether you are renting because you think it is too early to be rooted or because you cannot afford to buy your home yet, experts say that you should not be spending more than one-third of your income towards housing. However, with increasing rentals across the country, especially in the capitals, renters often find themselves living pay cheque to pay cheque, struggling to save for their life goals despite earning a reasonable salary. 

 

samantha

 

“It wasn’t possible for me to purchase a home near my office in Sydney, so renting was the next best option. However, houses in premium locations cost a pretty penny, and I decided to rent a little farther from my office but close enough to public transport to save money on rental as well as fuel,” says Samantha, a smart renter.

Small changes can reap big rewards. So renters, follow all, or some, of these easy to implement tips that will surely help you get more for your money:


Negotiate the lease
– Often, owners are ready to negotiate a lower price than what is listed, especially if you are opting for a long lease. Thus, it is worth talking to the owner to discuss the possibility of a lower price, or any extras that could be added in the same price, before you sign the dotted line. 

Once your lease is up for renewal, if you decide to continue staying in the same house, don’t hesitate to negotiate for a lower increase in the rental (or request to keep your rent the same) since you are saving the owner the cost of finding another tenant or possibly keeping the property vacant.


Choose the location wisely
– In general, the further you stay from the centre of the city, the lesser rental you’d be paying. However, apart from the rental, consider other factors such as proximity to work, access to public transport and the neighbourhood that all add to the value of the property you are considering. Another hack to save more, if you are not fussy, could be to choose an apartment in an older building. While you may miss out on some modern amenities, an old flat will not only be cheaper but could also be quite charming.


Find a flatmate
– If you are staying single, renting a studio apartment could be an excellent choice for you. With a kitchen, bedroom and a living area squeezed into a single room; studio rentals are usually much lesser as compared to one-bedroom apartments, offering the same value for less money!

However, if you crave for more space, having a roommate(s) share a flat with you could bring down your expenditure significantly apart from all the extra space that you’d get to enjoy. Additionally, your utility bills would also be divided.


Look out for extras
– Having free parking included in your rental, moving to a place with access to public transportation, having a discount supermarket in the vicinity, or renting an apartment in a building that offers free access to the gym or the pool could save you tonnes of money each month.


Be energy-efficient
– A few energy-efficient changes in your rental home, such as replacing the light bulbs with LED bulbs, could cut down a large sum of money from your utility bills. Turning off the lights when you leave a room, removing any chargers or adapters that are not in use or taking a shower instead of soaking up every other day are other smart habits that will further reduce your utility bills.


Be insured
– Stay safe by taking out a contents insurance that will have you covered in case of any theft or damage to your belongings. While you may view the insurance premium to be an extra cost, it is a much smaller amount than what you’d be paying to replace all your items in case someone breaks in. Read more on the topic here.


Retrieve your deposit
– If you have decided to move from one rental property to another, apart from informing your landlord of the move, do a thorough cleaning and get all the pending repairs done to regain your full deposit. It might be a good idea to click photographs of the property before vacating it, which may come handy in case of any dispute.

With a little bit of planning and research, it is possible to rent a home in an expensive area and yet save money to fulfil other life goals such as taking that long-awaited vacation or buying your own home or an investment property. Even as many renters choose to rentvest to take the first step into the property market, several others are saving money while renting to put down as the deposit for their first home. Whichever route you choose to buy your property, don’t forget to compare home loans online to get much more out of your money!

 

By Vidhu Bajaj
HashChing Content Writer

 

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