As the students move out of their dorm rooms after the freshmen year and search for affordable rooms for rent near the university campus, they look for independence and a trendy environment. Likewise, each year, young professionals move to new cities to start a new job and start looking for affordable accommodation near the workplace.
You should avoid making these money mistakes while renting a home.
Students and young professionals missing out on what might look like a good deal can be a financial pitfall. When you start to look for a room for rent for the first time, you are prone to fall into these financial pitfalls but fret not as we got your back here. We curated seven common money mistakes that renters make and to avoid them easily.
Here are seven common money mistakes you may want to avoid while renting a room.
- Paying High Rent
- High Utility Bills
- Neglecting Utility Bills
- Shopping Inefficiently
- Paying for Repairs
- Investing in Furniture
- Skimming Through the Lease Agreement
1. Paying too High
One of the often neglected things is analyzing the average rent for rooms of shared housing in the neighborhood(s) of choice. Students often fail to do adequate research around these figures and end up renting a more expensive place. A simple google search would tell you about the average rent and the cost of living in a neighborhood.
2. High Utility Bills
What comes with the rental is a thing to focus on as well. If the utility bills are too high, the rental isn’t worth it. Look out for any alarmingly high bills or talk to landlords about the utilities. If you are a student, you may not wish to look up rooms for rent in a neighborhood far away from your campus as they subsequently increase travel costs. To know more about the utility bills, you may wish to consult the building manager.
Know about your utility bills now. Source: Canva
3. Neglecting Utility Bills
Not considering any utility bills while planning a budget is a common mistake made by first-time renters. You may need to note the travel, food, and maintenance costs, along with your rent while trying to find an affordable room for rent.
4. Shopping Inefficiently
When it comes to decorating a room rental and personalizing it the way you like, people tend to buy all the decor at once, which may lead to some regrets. While you plan to shop, make sure you have a theme or color palette to stick to while decorating. While renting can be an easy and cheap option, renting too much is a financial pitfall. Avoid renting furniture that you can alternatively buy at a lower price. This will help you escape from the monthly furniture rental.
5. Paying for Repairs
Landlords are liable for making the place fit for living. They need to ensure that the radiator’s working, there aren’t any harmful levels of mold and fire and that the smoke detectors are up and running. While you may take up some minor repairs, paying for all the repairs is a huge mistake that renters make. Since these repairs are expensive, they may burn a hole in your pocket.
Make sure you don’t end up paying for repairs that you aren’t accountable for! Source: Canva
6. Investing in Furniture
Investing in high-end furniture might make your rental look good, but it is expensive, heavy, and difficult to move. Since room rentals have a space constraint, you may avoid buying too much furniture as it may overcrowd your room. Investing in certain furniture pieces might not be the smartest choice if your stay in a rental space is just for a few months. This is because they add to the moving cost, and reselling won’t compensate for the furniture pieces’ cost price.
7. Skimming Through the Lease Agreement
The lease agreement is a document that seals the deal. The document is the set of rules and regulations that the tenant and landlord mutually agree upon. Not reading the lease thoroughly might become an issue as the lease agreement may have clauses that might not work in your favor. If you face problems while understanding the contract, reach out to a property manager who can help you fix the agreement. Make sure that you understand the lease wholly and then sign it. Ensure that your contract has a few things mentioned, such as tenure of the lease, monthly rent, security deposit, etc.
Finding affordable rooms for rent isn’t that big a task when you use a trusted roommate finder that showcases genuine listings by verified users. Make sure you plan a budget before starting to look. To save some more bucks, you may even opt for shared housing or find a suitable roommate to share rent and accommodation. Roommates help you save half of the rent and even split the utility bills.