Save for Your Down Payment by Lowering Your Rent
- Jan. 5, 2016
- Courtney Lynch
- Personal Finance
If you are interested in investing in a new home, saving money for a down payment can seem like a long and grueling process. From cutting out your daily runs to the coffee shop to canceling vacation plans, saving money always seems like an inconvenience. However, there is one way you can save for your down payment without tightening your belt.
Negotiating rent with your landlord can help you stash away some extra cash, and it can help you reach your down payment goal a little faster. Follow these tips for a negotiation that works in your favor:
Do Some Research Ahead of Time
Don't go in blindly demanding your landlord lower your rent. He or she won't take it well, and you'll likely walk away from the conversation having made no progress. According to U.S. News & World Report, bring in the numbers and evidence to match your request.
"Maybe you could move to a cheaper place nearby," said Pierre Calzadilla, a Trulia.com rentals team manager, reported U.S. News & World Report. "Use that data to show that they should keep you here."
Bankrate also emphasized the importance of becoming familiar with the local rental market. Armed with this information you can propose a lower rent that is supported by concrete data. Keep track of drops in the nation's average rent as well as demand for properties.
Pitch your proposition by letting the landlord know you don't necessarily want to move, but you know the rental market has changed and you can find more affordable apartments in the area.
If you are a tenant who has paid rent on time, been courteous to other tenants and is generally a trustworthy person, you have an advantage.
"Landlords are looking for good tenants who pay their rent on time, take care of their rental unit, keep noise levels down, and stay on good terms with the neighbors and property management staff," says Kari Taylor, director of rental insights at Rent.com, according to U.S. News & World Report.
Improve Your Credit Score
Your credit score and history of payments are also an important element you can use to negotiate rent with your landlord. Ensure it is still high and demonstrates your financial dependability.
Negotiating rent is one way you can tuck a little extra money away for a down payment on a house. By approaching the situation properly, you can increase your savings without tightening your belt.