Nine Tips for Savings on Rental Property
Australia’s urban rental market is at its toughest to crack now. Let’s just say anyone subsisting on state payments is virtually locked out of it. Prices are hovering at unheard levels to boot. In Perth alone, unit and house rents have increased by 3.8 percent and 4.3 percent respectively in the first quarter, according to Australian Property Monitors.
Feeling their backs to the wall, many prospective tenants end up renting properties at a high cost. If you are one of them, keep in mind that you shouldn’t have to live paycheck to paycheck because of rental expense. A rent beyond your means deprives you of emergency cash to take when living through the slim months; savings for retirement; and payment for any existing debt. And of course, expensive rent hampers prospects of owning your own house.
Never fear, though. Here are just a few ways to save on rent:
- Find a roommate
Obviously, a roommate can share the burden of paying not just the rent but also the utilities, food, and other expenses. Then again, this would mean conceding some of your privacy.
- Don’t stop at the three W’s
Although the World Wide Web practically has a library of listings, the best finds may only be found offline. So ask friends and family to refer you places they know. Then, compare these units with what you’ve found thus far on the Internet. Make sure the listings are still on the market.
- Look long and hard
Don’t be in such hurry to settle for an exorbitantly priced, inferior house or apartment. Remember that you would be living for many days in this unit. More choices lead to a more informed decision. All in all, begin the hunt at least a month before you need shelter.
- Lower your standards
On the other hand, do not raise your standards so high as to make nothing ever passable for you. Leave room for some concessions. Low-priced rentals are hardly perfect. Is a luxury lavatory really that crucial? Does it really matter if the building has an ugly facade, when you are going to be staying inside 23/7 for online work? Focus on the essentials, i.e. low-maintenance amenities, good sanitation, safety, and tolerable neighbours.
- Nestle a few miles away
As a rule of thumb, you need to cough up more money for a hot piece of real estate, especially one adjacent to eateries, shops, and grocery stores. Some areas even require fees for parking your car. So just imagine all the difference a few blocks or miles can make. You can rack up savings without putting so much distance from these amenities. Nevertheless, don’t make the mistake of settling too far from your workplace if it lies in the aforementioned prime real estate. Your savings would otherwise be offset by the transportation expenses and the sheer hassle of the commute.
- Haggle!
When you’ve landed your ideal house or apartment, don’t fall for the first asking price. Negotiate.
If the landlord is charging higher than others in the area, collect some ads to show his or her mistake. Sleuth on classified ads sites such as Craigslist as well as apartment ratings sites.
Haggling would be all the easier too if you can prove you are a trustworthy tenant. Gather referral documents from former landlords and show off an untainted credit history. Give the landlord duplicates of your bank account statements to prove you can pay the rent on time. Punctuality is of the essence to many landlords, especially those still latched to a mortgage.
- Offer to pay more than a month’s rent
That is, to get more discounts and further impress a landlord with your paying capacity. If you’re considering this strategy, ask for the landlord’s mortgage statement to see if the property is not on the verge of foreclosure.
- If you are signing a lease…
If you’re going to be contracted into an apartment, you might as well sign for longer terms. This is a brilliant approach as you would be unaffected by subsequent rent increases.
- Work your discount out, literally
It could be that your landlord needs help in making ads, and you happen to be a great Photoshop artist. Or he/she might need someone to wash the dog. Jump at the chance to trade your spare time and energy for a discount. Too often, many landlords need extra hands with painting, lawn-mowing, and other maintenance work. Take care not to volunteer for major repair works though.
Sharon Freeman is a professional freelancer who writes about real estate and the latest housing trends in the real estate world.
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Category: Real Estate
