Renting? Here are six ways to stretch your cash
As any smart renter will tell you, you don鈥檛 need to break the bank to have a roof over your head.
A luxury rental building rises high above other residential buildings in the East Harlem section of New York. The number of renters grew faster on the outskirts of the nation's 11 most populous cities than within them between 2006 and 2014, New York University's Furman Center real estate think tank and bank Capital One found in a report released March 8, 2016.
Seth Wenig/AP/File
Rent has long been听the biggest expenditure in many people鈥檚 budgets 鈥� about 30% of听a renter鈥檚听income has traditionally gone听to the landlord. And today that percentage is听.
But as a smart renter will tell you, you don鈥檛 need to break the bank to have a roof over your head. Here are six ways to听keep money in your pocket if you rent.
1. Get a roommate
Finding one or two roommates is a foolproof way to save on rent and . You might also be able to split听other expenses, such as groceries, Internet and cable. That means听you may be able to afford a larger and nicer apartment in听a better location than if you lived alone. Websites like Roommates.com and Craigslist听may help you听find a compatible roommate.
2. Find a great location
Location is one of the most important factors in many apartment searches. Choosing听a place that鈥檚 close to your office听or school, as well as a grocery store, will save you time and gas money. The Walk Score app shows you听grocery stores, schools, restaurants and coffee shops near any apartment you鈥檙e considering.
3. Have your finances in order
Like any other business owner, landlords want to protect their investments听鈥� and get paid on time. Having a听 of 700 or higher听and other evidence that you鈥檙e financially stable听reassures potential landlords that you鈥檒l听be a good tenant. This gives you more choice听in apartments, and it may allow听you to negotiate a lower down payment or rent.
4. Negotiate with your landlord
It helps to know the prices of other rentals in the area when negotiating your rent. If similar apartments nearby are priced more competitively than yours, use this as leverage. Or you can ask your landlord for a discount in exchange for painting and performing minor repairs.
If you plan to live in the same place for a long time, you can also ask your landlord for听an extended lease agreement at a听lower rent. Most landlords would be happy to have consistent rental income, even if it鈥檚 slightly less than they intended to charge. And if you have some money saved up, offer to prepay three months鈥� rent听in exchange for a听5% to 10%听discount.
Make sure that any discounts you discuss with your landlord are听laid out in writing听鈥� and that effective communication can help you a lot when negotiating.
5. Take advantage of technology
Apps and websites 鈥� such as PadMapper, Zumper, Naked Apartments, Rad Pad and Zillow 鈥� can help听you find affordable rentals听and听avoid real estate agent fees.
Once you have a place, websites such as Freecycle.org and Craigslist let听you move in and furnish it听on a budget. For instance, when my firm听switched听offices, we found our movers through Craigslist.
6. Consider renters insurance
Your landlord is听responsible for insuring your rental听against damage from fire and other disasters, but not your personal听property. For that, you need to听. Renters insurance adds an expense to your budget, but it鈥檚 reasonably priced, and it can protect you from having to replace all your belongings 鈥� which would be a much bigger financial setback than your monthly premium.
Finding a great place to live for a reasonable price can be difficult in some locations, especially big cities like New York and Los Angeles. Fortunately, there are many ways you can听save on your rent. And bringing down your housing costs frees you up to put cash toward bigger financial goals, such as听 on a home or .
听is the founding partner of听in Irvine, Calif. This article first appeared in .