- Look for affordable properties that are close to work
- Share your flat to bring down your expenses by half
- Make a realistic monthly budget and review it frequently
- Secure a flat with a rental deposit loan of up to Rs.5 lakh
Relocating to a new city and searching for budget-friendly rental properties can be an uphill task, especially if it is your first time away from home. However, there are tried-and-tested ways of saving on costs. For instance, some experts recommend that you use the 50-20-30 formula, where 50% of your income finances your rent and utilities, 20% goes towards your savings and 30% is set aside for things that classify as ‘wants’, such as dining out.
Continue reading to learn about other renting tips that you can use to manage your finances better and save money in a metro.
Identify affordable houses for rent in convenient locations
One of the most important renting tips is to look for affordable flats to rent. Location and configuration often have a big say when it comes to the final price. So, when both are equidistant from your place of work, instead of taking a 2 BHK house for rent in an upscale area, consider a 1BHK flat on rent in an upcoming area if only 1 or 2 people are relocating. You could also look out for properties with longer lease tenors as these tend to be cheaper.
Take a rental deposit loan to ease cash flow
Security deposits and advance payments can cost a small fortune in metros like Delhi, Mumbai, Chennai or Bangalore. For instance, on zeroing in on an affordable 2 BHK house for rent in Bangalore, you may realise that the security deposit you need to pay amounts to about Rs.1.2 lakh. Instead of passing on the apartment, you can seal the deal when you consider assistance via a rental deposit loan.
Offerings such as the Bajaj Finserv Rental Deposit Loan extend financing of up to Rs.5 lakh. This should suffice even if you’re considering upscale rental properties in metros. You can use the amount to pay the rent deposit just as easily as you can use it to hire professional movers and packers and buy necessary furniture and appliances.
Moreover, you can repay the amount over a tenor of up to 36 months and opt for the Flexi Hybrid facility should you need added flexibility. Here, you can make withdrawals from your approved sanction on the go. Interest is levied on the amount withdrawn only and not on the total loan amount. Further, you can choose to service interest-only EMIs through the tenor and repay the principal later. This allows you to ease into repayment while you adjust to a new city.
Avoid brokers as far as possible
Brokers tend to be well-versed with rental properties and can help you with finding the ideal apartment. However, you have to pay a premium for their services, often a month’s rent! So, if you can avoid brokerage fees, why not? Perhaps a friend or a family member in the city can help you look for the ideal 1BHK flat on rent. Optionally, you could search for listings and advertisements made by owners themselves.
Share the apartment with a colleague or friend
Sharing an apartment is definitely one of the most effective renting tips as it allows you to reduce your outgo drastically. For instance, if you needed to pay Rs.40,000 per month as rent in Delhi, with two people bearing the costs, you pay just Rs.20,000 each. Nevertheless, before you take this step, read the lease agreement and have a word with your landlord as there may be certain conditions governing the number of tenants and their admission.
Set a monthly budget and stick to it
A sure-fire way to achieve your financial goals is strict and smart budgeting. Here are 3 things you can start with.
- ● Review your daily commute expenses: Weigh the pros and cons of various options, including public transport and your own vehicle, and choose one accordingly. Then, allot an amount sufficient to get you to work on time, during peak hours.
- Save big by cooking at home: Make a weekly meal schedule, buy only the necessary groceries and set a fixed sum for eating out.
- Set aside a day to review your budget: Fine-tuning your budget is a must, especially as you settle into a new city. Reviewing your finances frequently will allow you to trim the excesses and give other overheads some breathing room.
These rental tips are sure to go a long way in helping you save money in a metro. Remember that if the security deposit or other moving expenses are getting in between you and an excellent apartment, you can get assistance from Bajaj Finserv’s Rental Deposit Loan. In fact, you can check your pre-approved offer to hasten access to financing. On entering basic details into an online form, you can get instant approval.