Save money whilst renting?

I was asked a little while ago by one of our subscribers to write a piece on how to save Money Whilst Renting. Unfortunately saving money directly on renting isn’t always easy or even an option, like it can be with a mortgage. but there are plenty of area’s left still to plunder.

Just because you are renting and not a home owner, doesn’t mean you can’t save money, you just have to explore all other avenues to make the most out of your money. To be fair though you should be doing most of these things regardless of renting or buying!

Accommodation

• Council or housing association properties are almost always at a heavily reduced rate compared to private rent. The list, or auction style bidding system can be lengthy but this will save you huge amounts of money if you are in a vulnerable group. Be aware though that the culture of a council home for life is coming to an end as the government tries to crackdown.
• If you are indeed in a council house and work full time, it may be time to seek financial help and see if you can afford The Right to Buy. The scheme offers you the chance to buy your home for vastly discounted rate. The best thing of all is that the discount in most instances will act as your deposit and will also act as equity so should allow for a very competitive interest rate. Only consider buying though if you can afford all the repairs and bills that come with it such as boiler and structural work.
• Location, Location, Location. Just the same as if you were buying an house, the location makes a huge difference in the cost of rent. The location can actually be an even a bigger factor than the size of a house.
• Do you need a 3 bed? Generally, the smaller that house, the smaller the rent. Whilst that may be obvious to most people, things like drives, garages, garden size and even if its south facing may not be so obvious.
• ShareandCare is a fantastic scheme in which elderly home owners to share their house with you in return for a cheap monthly rent and a couple of hours or help each day. You are expected to give 10 hours of help a week and should be able to commit to a year on the scheme. Costs in return are extremely low at just £125-£180 a month depending on location. This isn’t for everyone but will be invaluable for some.
• If you plan to do any DIY or painting, always get your landlords permission on paper in advance or it could end up being costly.
• Always check in advance for additional letting agent fees as this can vary.
• If you are private renting, haggling is part of the process! Don’t go straight in at the asking price unless its seriously under priced, as these properties may go fast. If you’ve seen the property, try to find flaws to adjust the price accordingly.
• Always search on Zoopla or Rightmove for your dream rental property. Don’t just stick to one letting agent.

Bills

• Just because you are renting doesn’t mean you can’t change your energy supplier, even if you are on a prepaid meter! Get it changed asap to save big money. I recommend Uswitch as I have used it many times myself.
• Reduce your energy consumption.
• Check with TV Licensing to see if you need a license as if you are in shared accommodation the rules vary depending on agreements and licences already held. Also if you don’t watch anything but catch up then you could also be excluded (All except BBC which you now need the license for)
• Your telephone, television and broadband package is regularly an area overlooked.
• If your water bill is high, you can also opt for a water meter fitted, even though it is a rented property. Always ask for permission however.
• If you are a full time student then you are exempt from Counsel tax. Visit the Gov website to apply for the discount and for more information.

Extra Money

• Check out our last post on how to earn extra income online for great inspiration on how to earn for very little effort online.
• Consider taking an extra part time job such as leaflet distribution or newspaper round.
• If you do have any savings, make them work harder for you in an ISA.
• Consider a cheaper mode of transport. If you need a car then always check Parkers for all the running costs, tax bands and insurance groups to see if you could save by switching car. Also check our guide on reducing running costs.
• Check our long list of simple money tips to save in all areas.

If you have any more tips on how to save Money Whilst renting then please do get in touch and I will be sure to add it to our how to save money whilst renting list.

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