How To Have Financial Leverage When Signing A Lease
When you rent an apartment, you attain the flexibility to move anytime and still get suitable rent rates for your budget. It also allows you to have a place you can call your “home” until such time you will be able to save enough money to purchase a house or pay its downpayment. Flexibility, of course, does not come without some stipulations.
According to the data of the 2020 Mid-Year Rent Report of Apartment Guide, the average monthly rent for a single bedroom apartment is already at $1,600. Moreover, it stated that the price would increase to roughly $1,900 if you want to get a second bedroom. The figure escalates even further if you are going to avail rooms that are within the higher rental markets. Moreover, the cost of the rent does not yet include the other expenses and utilities that come when you are renting.
Fortunately, there are some strategies that will help you save some money when signing a lease to your rent. Here are some of them.
Preferring For An Affordable Location
First, you have to mind where you want to rent? Do you want somewhere downtown, where it is near to your office or workplace? Or you want somewhere that is relaxing and peaceful like the suburbs?
Based on the recommendations of real estate agents, you will get more out of your money if you are going to rent an apartment that is located on the outskirts. It is pretty evident that you will have to pay more if you are going to rent in a central location. You might also have to deal with the rental of parking spaces if this doesn’t come with your rental unit.
However, keep in mind that if you are going to rent in the suburbs, the expenses that you put in commuting will likely increase. You will have no other choice but to increase your budget for your fuel cost if there’s no public transportation available.
For example, the average price of a single-bedroom apartment in New York City is approximately $2,500 per month. The same apartment could have a lower rental rate in Jersey City. However, you need to deal with long commutes. At this point, you need to balance your options based on your current situation.
Negotiating The Rent
Always be hopeful that the rental rate being advertised is not final. Most of the time, these prices are not set in stone. Hence, you are still capable of negotiating them. You can ask the landlord if you can avail discounts if you want to rent an apartment that has not been used for a long time or a complex with multiple units. Keep in mind that these landlords want their apartments to get occupied throughout the year. If you are going to fulfill this desire, they might give your rent a cut.
Of course, it will never hurt if you are going to open this matter to the landlords. You will never know how much they are going to haggle until you ask them.
If you want to leverage, then you can use nearby competitions. Alternatively, you can also present the downfall of the building as a basis for why you want to enter a negotiating table with the landlord. If the latter thinks that you will just have to prefer another apartment, he or she might give you an affordable rate instead.
If you are not fortunate with the negotiation, then you can ask the landlord if they are willing to waive your deposit or application fee. Meanwhile, keep in mind that apartment companies are not that open when it comes to advertising discounted rental prices or special rates when moving in.
Individual Landlord Or Rental Company
The next thing that you need to decide is to whom you should rent. You have two options here: an individual landlord or a rental company. The latter and other apartment complexes typically provide extra amenities that give you convenience, such as gyms, pools, and recreational facilities. But of course, expect that they do come with a price. They usually increase the rental rate.
Of course, you can avoid the extra cost by waiving these amenities. But in doing so, you will have no other choice but to rent your apartment from a private landlord. Based on the reports of real estate companies, private landlords are a suitable choice if you have issues with your credit standing. After all, they can approve you without taking a look at your credit score.
Needs vs. Wants
If you want to save money, you should always consider giving up your wants and uphold your priorities and needs. Are you willing to surrender the pleasures so that you can save money and live somewhere that is suitable for the demands of your job? Or you simply want to live in a comfortable space that is complete with various amenities?
Your answer to these questions will help you narrow down your choices where you are going to rent. At the same time, they can also indicate if you will be able to save money from the monthly lease that you need to pay.
Of course, the ideal move here is to reduce the rental costs but cutting down those “extra” conveniences. Surely enough, we are not saying that you should just rent somewhere that is dilapidated and unsafe. Instead, we just want to emphasize that you can have affordable options that will never require you to spend big or incur future debts.
For instance, if you stay in a particular space is just short, you can cut the costs by just keeping only the necessities.