7 ways for renters to save money

If you’re living in a rental property, it’s no secret that saving money while paying off rent every week is no easy task. However, you’ll be happy to know that there are ways to get a little extra going toward your savings account. So whether you are saving for a home deposit, a holiday or simply for a rainy day, here are 7 tips to help you.

Location, location. location

If you are living close to a city centre, you’re probably paying a lot more per week for this convenience, however if you move a bit further away from the city, your weekly rent will normally drop, meaning more money for your savings account. Further away from the city fringe there is less competition for housing and therefore better value for your money.

Sharing with a roommate

Splitting the rent with someone will always be cheaper than paying for a place on your own. If you are currently living by yourself it may hurt to lose some of that prized independence you get from living alone, but adding an extra person or people to your living space means you can share the cost of the rent around. You’ll find your costs fall in other ways, too. A split bill for utilities, as well as being able to buy food and cook together, will make things much easier on your bank account.

Downsize your rentalIt may be a good idea to take a good hard look at where you’re living and ask yourself: “Do I really need this much space?” Sure, it’s nice to have a lot of room, but downsizing to a studio apartment could be the key to getting your finances on track. These apartments have a kitchen, lounge and bedroom all in one room, and are designed for one person – though if you’re a couple, there’s no problem with making things cosy.

Save electricity bills

It is estimated that households now have on average up to 70 electric devices, with as much as 40 per cent of all electricity being used when the products are turned off or in standby mode.

Don’t spend a fortune on furnishings

If you are moving into your first rental home don’t be tempted to spend a fortune on furniture, as you’ll find you’ll end up throwing a lot of it out as your earning and needs change. It is worth looking on Gumtree, eBay, Facebook community groups or visit your local Salvation Army store as you’ll be able to find a bargain and in some cases freebies. Also ask your friends and family if they have anything they want to get rid of, or if you could borrow an item for a while. This can save you an enormous amount when you are setting up a rental home.

Move closer to public transport

You can save a lot of money if you choose to live near public transport or in a location that doesn’t require you to own your own car, or drive it very often. When looking for somewhere to live consider its proximity to public transport, restaurants, supermarkets, entertainment, schools etc. The less you have to drive or take the train, the more you can save.

Eat in more often

Did you know that if you cook and prepare your own food you will save between 50-70 percent of the cost of take away. You don’t need to be a great chef to pull together delicious and healthy homemade meals and almost anything you cook at home will save you money over eating out.

we buy houses for cash Clearwater

Posted in Uncategorized | Leave a comment

Renting with roommates and how to split the rent

Benefits of renting with roommates

Before you start living in a property, provided the landlord is satisfied with your application, you and your room-mates will sign a co-tenancy agreement.

This will effectively ensure that each flat mate has equal legal rights and responsibilities, with no co-tenant allowed to influence authority over others. This works especially well if you’re living with a mix of people that you know and can trust.

Having a roommate or two can help you manage the financial burdens of renting because you don’t need to shoulder the total cost of your living expenses. Splitting rent with roommates also can help you choose a better location that you may not be able to afford on your own plus it will help reduce the amount you pay in utilities and shared household supplies.

Part of the fun of living in a house with roommates is the amount of time you get to spend with friends and relatives that float in and out of your housemates’ lives. You will almost always have someone around to share a drink, to carpool, to order takeaway with and not to mention a saviour who can let you in when you’re locked out!

Negatives of renting with roommates

The benefits that come with a co-tenancy agreement can also become negatives, given the right (or wrong) circumstances. The most important factor that you must take note of is that co-tenants share joint liability. This means that as soon as your pen hits the paper, you’re bound to the agreement both as an individual and a group.

For example, if your roommate had been missing rent payments for a few weeks and their debt had compounded, all the other co-tenants, including you, could be held responsible.

To help ensure your renting experience with roommates goes without a hitch, here are a few tips to take on board with payments:

Paying the landlord

In order to avoid the situation where you could find yourself having to fund your roommate’s rent, you should be vigilant when it comes to the weekly payments. If you request it, your landlord or property manager will provide you with a receipt of your payment.

Keeping on top of this will allow you to ensure that the necessary payment is being met, and if not, enables you to act quickly.

Splitting the rent

Figuring out how to split the rent can be challenging but when living with roommates it is an important process to go through before your sign the lease. Here are 2 solutions to make this process as fair as possible and to help reduce any arguments.

Divide the square meterage

This is an easy and fair way to split to rent. To get an accurate breakdown, take the square meterage of each bedroom and divide by the total square meterage of the property. This gives you the percentage of space that each room occupies. Then take each individual percentage and apply it to the total cost of rent. This therefore breaks down the cost according to percentage of total space occupied.

Who has the most perks

Consider what each person gets for the rent – is it fair? For instance, if someone has an ensuite, built in cupboards, balconies, windows, then they should pay extra. You can assign a cost to each amenity and add that to an evenly divided room price.

Paying the bills

One of the main points of conflict when sharing a house with roommates is rationing the utility bills, because really, no one wants a slice. It is recommended to assign the responsibility to one of the co-tenants as soon as you move in. This doesn’t mean they pay the entire bill, but rather are responsible for paying the bill on time

Generally, you should divide the expenses such as gas, electricity, internet and water equally among yourselves, before paying your allocated member the required amount when necessary.

It can get difficult when usage is uneven, for instance one roommate has an electric blanket they never turn off or another who steadfastly streams re-runs of Star Wars each and every day. If that is the case, it is worth coming to an agreement to ensure they pay extra for thier habits.

Good luck with your roommate experience – if you plan it right and sort out the rent and bills up front you’ll no doubt have loads of fun.

Posted in Uncategorized | Leave a comment