7 Tricks to Lower Your Rent
There are many perks of being a renter: not having to worry about the cost of wear and tear on the house, being able to move without selling a home and not feeling pressured to make your apartment look like the "after" image from an HGTV show. But for all the perks, it is frustrating to pay rent month after month without building any equity in a property. The fact you'll never get a return on that money is one reason it's important to keep your rent as low as possible.
Here are seven tips to keep your rent at the bare minimum.
1. Switch providers each year.
Cutting cable is old news. It's a great way to save money each month, and hundreds of dollars in the course of a year, but just using Internet can creep up in price, too. There is no reward for loyalty, and your provider will probably increase your price by $5 to $10 each year. So what started as a $30 package turns into $60 three years later, and you're still using the same bandwidth and speed you got with the $30 package.
There are two strategies you can take to lower this expense. The first is to call and negotiate with your provider. Sometimes you can even swap ownership of the account from your name to a roommate's name in order to get the promotional, first-time customer rate. If your provider is not willing to negotiate or use the old swap names trick, then the second option is to switch providers. There is a little more of a headache involved, but you can alternate providers each year to keep getting a promotional value on Internet (and cable if you decide that's a mandatory expense, too).
2. Live with a roommate.
It's common sense, but worth mentioning, if you really want to save on rent then consider getting a roommate. This goes for couples, too. Get a two-bedroom apartment, and split the cost. That's an easy way to come up with some extra money for student loan payments.
3. Ask for a credit if something breaks.
One perk of renting verses owning is that house upkeep isn't coming out of your budget. If something breaks, like the refrigerator, ask for a credit on your rent to make up for the fact you had to eat out until the fridge got replaced. Be tactful in your approach, but it doesn't hurt to ask.
4. Negotiate with your landlord.
Getting a new tenant is bothersome for your landlord. It can be an expensive process if the tenant goes through a broker, and it also require giving the apartment a deep clean and touching up the paint. If you've been a model tenant for the last year or more, consider negotiating with your landlord when he or she tells you about a rent increase.
Just be prepared to get shut down and decide if you'd rather leave or just grin and bear it for another year.
5. Do the math before moving.
Don't make the decision to move out of your apartment without some serious thought to the cost. Even if you'd save money on rent each month, you need to factor in how expensive it would be to move all your belongings. How many months (or years) would it take to break even? If you plan to move to a more costly apartment and area, factor in just how much the hike in rent coupled with the cost of moving will damage your savings account.
6. Know the local law.
Don't assume your landlord is allowed to levy a massive rent hike against you. Check with your local law first. Are you in a rent-stabilized building? Was the prior tenant paying a fourth of your rent? You may be able to file a Fair Market Rent Appeal in New York City or something similar wherever you're renting to lower the rental cost.
7. Sign a lease.
Signing a binding legal document may seem intimidating, but a lease can be used for your protection. Without a lease, you can default to a month-to-month rental agreement, which means your landlord could legally hike your rent the next month (with some notice). A yearlong lease guarantees your rent will stay stable for at least 12 months.
You Could Always Live with Mom and Dad
In the ultimate rent-lowering move, you could behave like the stereotypical millennial and live in mom and dad's basement. Those who really want to do some serious damage on repaying student loans or building a nest egg could probably bank the most cash by paying minimal rent to parental landlords.
Erin Lowry writes about personal finance and serves as the content director for MagnifyMoney.com, a site dedicated to helping consumers save money by finding simple and transparent financial products. She is also the founder of the personal finance blog Broke Millennial.
