There are many ways homeowners can save money, but what about if you’re a renter?
If you are graduating from college and getting your first apartment or renting an apartment during a lifestyle transition, here are some tips to save you money.
1. Location, location, location
As a newly minted college graduate, I made the mistake of renting an apartment in the big city of Atlanta without even having a job lined up.
I got
very lucky – my first job ended up being just a few miles from my apartment.
What I should have done
This one is a bit tough because I didn’t have any family or friends in Atlanta when I moved there. I guess I could have lived in a hotel while I interviewed and found a job.
Jordan – one of the listener’s to my show – is sleeping on his cousin’s couch in NYC while he searches for work. That’s the way to do it if you can.
I should have waited to sign a lease until I knew which part the city I would be working.
Long commutes are a drain on your time and finances.
2. Balance wants and needs
I also made the mistake of renting a luxury apartment (Post Properties) without having any income! The only reason I was able to because my roommate (a guy from my fraternity) had a big enough income at his first job to cover the entire lease.
Six months after I signed the lease, the student loan bills started rolling in. Then I went out and financed a new vehicle. I lived the paycheck-to-paycheck lifestyle for years because I didn’t know any better and wasn’t looking towards my future.
What I should have done
- Set a budget to see what I could afford.
- Limited my apartment search to prices in the budget.
- Never bought that brand new Jeep.
Once you’ve decided what you’ll pay for housing, thinking about starting an emergency fund to cover your expenses in case you can’t work due to a loss of income or medical emergency.
3. Get a long-term lease
- A two-year lease is cheaper than an 18-month lease.
- An 18-month lease is cheaper than a 12-month lease.
- A 12-month lease is cheaper than a 6-month lease.
- A 6-month lease is cheaper than a month-to-month lease.
The longer the lease, usually the less it costs. You’re saving the landlord money because they don’t have to clean/replace the carpet and paint the place as frequently.
4. Always negotiate on lease renewals
Once your lease is up for renewal, the landlord usually wants to increase your rent. You have a bit of an advantage in negotiating the increase down or to zero.
If you move, the landlord has to have the place cleaned. Additionally, the apartment will be unoccupied during that time. And in their worst case scenario – they have nobody lined up to move in. Every week and month the place remains vacant the owner loses money.
If you like the place, try to negotiate for a lower increase or to keep your rent the same. You have power if you’re willing to move out.
But if there are more renters than space or you’re in a hot rental market, the landlord might be willing to let you walk so they can jack up the rent price for the next tenant.
It never hurts to ask for a discount.
5. Move close to public transportation
Our new rental house is within walking distance of the Dallas rail line. You can save a lot of money if you choose a location that doesn’t require you to own a car or to own a cheap old car you don’t drive much.
When looking for apartments consider:
- Access to public transportation
- Grocery stores
- Restaurants
- Entertainment
The less you have to drive or take the train, the more you can save.
6. Shop around for deals
The best deal on an apartment requires considering all the options. Look outside the apartment finder magazines at the grocery store. The kind senior citizen with the basement or apartment above the garage for rent may be just what you’re looking for.
Check out
- Craigslist
- Asking co-workers and friends
7. Save energy
Homeowners have lots of ways to save money on their homes. Don’t feel left out as a renter! There are also many ways for renters to save money on energy.
LED bulbs
The lights installed in your apartment may be inefficient. You can use energy-efficient light bulbs such as LEDs to save money.
How to know if LEDs are worth the cost
- Use this test to see if LED light bulbs can save you money.
- Keep any lights you replace in a drawer.
- When you move out take your pricier LED lights with you!
