We all need a place to live, so we all have to spend a portion of our income on rent or housing costs, and it’s fair to say that it probably eats up more of our budgets than anything else, but you know what? There are still savings to be made, so if the cost of housing yourself is causing your bank account to dwindle rapidly, here are some things you can do to save money in that particular area right now.
Negotiate Like a Boss
First things first: if you don’t ask, you don’t get. When it’s time to renew your lease, don’t just accept the new rate without a chat. Arm yourself with research on local rent trends and come prepared to negotiate. If you’ve been a stellar tenant—paying on time, keeping the place in good shape—mention these points. Sometimes, landlords value a reliable tenant enough to think twice about a rent hike.
Buddy Up
If your landlord isn’t budging on rent, consider getting a roommate. Halving your rent could dramatically reduce your monthly expenses, and hey, you might make a lifelong friend—or at least have someone to binge-watch Netflix with. Just make sure you choose someone compatible and not your freeloading cousin who thinks “rent” is just a Broadway musical.
Look for Rent-Controlled Apartments
If you’re apartment hunting, try to snag a rent-controlled unit. These gold mines of the rental world offer protection against significant rent increases. It’s like having an economic shield against the volatile whims of the real estate market. Check local regulations to see how you can qualify for these types of apartments.
Consider a Longer Lease
Sometimes committing to a longer-term lease can persuade a landlord to lower the monthly rent. It’s a win-win: your landlord doesn’t have to worry about finding a new tenant for a while, and you secure a lower rent rate. Just be sure you really like the place, or you could be committing to a long-term relationship with that weird stain on the carpet.
Move to a Less Expensive Area
Okay, so maybe it’s not the trendiest neighborhood with a coffee shop on every corner. But often, just moving a few miles out can significantly decrease your rent. Plus, you might discover some hidden gems—like that mom-and-pop pizza place that blows your usual joint out of the water.
Sublet During Travels
If you’re often out of town for work or love to travel, consider subletting your apartment while you’re away. It’s a great way to recoup some rent money and justify that extra souvenir from Bali. Just check your lease agreement first and clear it with your landlord.
Barter for Discounts
Got skills? Use them! If you’re handy with repairs or have a knack for gardening, offer your services in exchange for a rent reduction. Many landlords appreciate the chance to have maintenance issues resolved without having to call in a professional.
Appeal Your Property Taxes
Homeowners, listen up! If your home’s property taxes seem through the roof, it might be time for an appeal. If you feel your house has been assessed at a higher value than it’s worth, gather evidence, and challenge it. Lowering your assessment can significantly reduce your tax bill.
Refinance Your Mortgage
With interest rates bobbing up and down like a yo-yo, keep an eye out for refinancing opportunities. Locking in a lower interest rate can reduce your monthly mortgage payment and save you a ton of money in the long run. It’s like a financial diet for your bloated mortgage.
Become an Airbnb Host
If you have a spare room or a second property, consider turning it into an Airbnb. This can be an excellent way to utilize extra space and earn additional income that can offset your rent or mortgage payments. It’s like having a side hustle without leaving the comfort of your home. Plus, you’ll meet interesting people from around the world right from your living room!
Take Advantage of Energy Efficiency Programs
Reducing your utility bills can also help lower overall housing costs. Many utility companies offer free energy audits, where a professional will assess your home for energy inefficiencies and suggest improvements. Additionally, investing in energy-efficient appliances, smart thermostats, and better insulation can lead to significant savings on heating and cooling bills.
Seek Out Housing Assistance Programs
For those who qualify, there are numerous government and nonprofit programs designed to help reduce housing costs. This could include rental assistance, subsidized housing, or affordable home loans for first-time homebuyers. Research local opportunities and apply for any programs for which you might be eligible.
Utilize a Housing Counselor
If you’re really struggling to make ends meet or just want to get better at managing your housing expenses, you should probably consider consulting with a housing counselor. These professionals can offer advice on buying a home, renting, defaults, foreclosures, and credit issues. Often provided at no cost, their expert guidance can help you navigate complex housing challenges and improve your financial situation from whatever point you are starting at.
Choose a Smaller Home
Last, but not least, you should consider whether you really need that sprawling estate, or whether you could live with a smaller home after all. Obviously, it may be harder to downsize if you have kids and pets and a whole big family thing going on, but most of us can cut our housing costs by simply choosing a smaller space, even if it means decluttering and getting rid of a few things. Ask yourself, whether you would rather have a huge house and an empty bank account or a smaller home and more money to live life with?
Whether you’re a renter or a homeowner, there are plenty of strategies to reduce your housing costs, and we’ve laid out some of the best above, so hopefully, you can get to grips with your rent and housing costs, and save money, once and for all.
