Saving Money by Renting Smart

With the recent increase in home foreclosures and short sales creating more of a demand for rentals, rents have been creeping up. If you are in the market for a rental home, make sure you are renting smart to make your money go farther. Impulsively signing a lease or rent to own contract could cost you financially in the long run.

Look carefully at the size of home you need. Just because you just short-sold your 3500 square foot home, does not necessarily mean you need to go out and rent a home of equal size. A major factor in rent is the size. If you only really need a two bedroom 1300 square foot home, why pay for two extra bedrooms. More space does not only mean more rent, it can also mean higher utility costs, and higher living expenses, as you will want to furnish all those extra rooms.

When evaluating a home to rent, make sure you take into account everything the home comes with. Does it have a washer and dryer, or will you be expected to provide your own? Will you be expected to do lawn maintenance? If so do they provide a lawn mower, or is that another expense you will have to incur. If the home or townhome is part of a homeowner association, does it include any amenities? You may be able to drop a gym or pool membership and save money.

Location is another major factor in determining rent prices. This can be a double edged sword. Going farther away from major metro areas will generally result in lower rents, but could cause higher transportation costs. Make sure to take in to account your projected monthly transportation costs when evaluating a rental. Also look at accessibility to public transportation. A well located rental may let you ditch the gas pump for a bus pass and save substantial money.

Before you rent, know what is included and what is expected of you. Are all utilities included or will they be your responsibility. If you are responsible for utilities, many companies require a deposit before turning on utilities. Make sure you know what this ahead of time, so you don't have an unexpected expense. In many metro areas, parking can be very scarce, so make sure you know what the parking availability and regulations are before you rent a home.

Finally if you really wish to save money, and are willing to give up a little privacy and personal space, getting a roommate may be an option for you. Just make sure that your roommate is financially responsible, or you could end up paying both shares.

Renting smart just requires taking the time to fully evaluate all of your rental options, and making sure you understand the costs and benefits of each one.