Renting property is an expensive business. This is especially true if you live in big, popular cities like London where the cost of renting accounts for almost half of the average salary. Many people feel like they live from hand to mouth with very little, if any money left over each month for savings. If you are trying to create a savings fund, whether for the purpose of buying a home or for any other reason, keep reading for some handy ways to save money while you are renting.
You have a certain amount of control over your monthly bills like heating, electricity, internet and television. Using comparison websites like uSwitch to feed in the details of your current accounts. The site will then provide you with information on the better deals you could get by switching providers. Your landlord should not prevent you from doing this. However, if you do face any resistance, the Citizens Advice service will be able to provide you with information on how you can proceed.
Cheap or free furniture
Buying furniture for an unfurnished rental property can be a huge expense. Luckily, there are a number of ways to save money on these purchases. Waiting for the sales could mean you bag a few bargains. If this is not practical, charity shops, eBay or websites like Freecycle (where you can pick up second-hand furniture for free) could help you to minimise this cost.
Reduce your rent
If you feel your rent is really preventing you from saving, you may wish to consider looking for another, less expensive property. You will want to find somewhere that is affordable and in good condition, and this can take time. So, you may wish to enlist a good estate agent to help you out. They can do most of the legwork for you, and send you recommendations based on your requirements. Although you will need to pay admin fees for this service, this will likely be worth it for the potential long-term savings you could make.
Haggle on rent
Many tenants aren’t aware that they can attempt to negotiate the monthly rental cost before signing a contract with the landlord. Not every landlord will be willing to do this but, especially when you are living in a city where it is a tenant’s market, many will be desperate to rent out their properties. When viewing, use any noticeable flaws (like a stained carpet or a cracked ceiling) to haggle for a lower rental price. If they are open to negotiations like this, you may succeed in reducing the monthly cost.
Evaluate your finances
Taking a regular examination of your financial situation is important and helpful when it comes to saving. Grab your bank statements for the last six months and highlight areas where you could realistically cut costs. For example, can you save money on transport by cycling or walking to work? Can you cut costs by making your lunches at home rather than buying them every day? These may seem like little changes, but together they add up to potential big savings.
No matter how much your rent affects the amount you can save each month, there are things that can be done to better this situation. I hope you find this information of use.