Blog
August 2, 2024
10 Ways for Tenants to Save Money on Their Home
Introduction
One of the most advanced countries, the United Arab Emirates, provides a comfortable and reasonably priced living to its residents. Because of the lifestyle, security, and employment opportunities, many individuals are moving to the United Arab Emirates to live, work, and invest.
However, recently many Residents of the UAE have changed their financial habits due to rising living prices and expenses; as they intend to save more and spend less this time of the year. Through a variety of strategies about how to save money while renting.
A Brief Review of the UAE Rental Market
Each of the Emirates has a little fluctuation in price and demand for rental properties. In popular locations, prices have increased significantly following the COVID-19 pandemic. For instance, since 2020, the average price of an apartment in Dubai has climbed by thirty percent. On the other hand, the rent of some villas has gone up by 50%.
10 Ways for Tenants to Save Money on Their Home
Unfortunately, a lot of tenants use up the majority of their monthly income in paying rents, bills and other expenses due to which they are unable to save money for hard times. However, here are some ways how to save money while renting.
1. Living in Shared Spaces
When thinking about how to save when on rent, you can try renting your property along with other tenants is one of the simplest methods to save money on rent. So, if you are planning to live with one or more roommates and you were paying 12,870 AED for a three-bedroom apartment, you would save an extra 4290 AED a month, or 51,480 AED annually.
Before making such an arrangement, make sure to seek your landlord’s approval. As different countries in the UAE have different laws regarding sharing spaces, and some landlords can require each tenant to co-sign the lease.
2. Choosing Location Near Workplace
Suppose you are thinking about how you can save money while renting, it is important to take practical factors into account, even if certain areas may tempt you due to their lifestyle, facilities or rental prices.
But It doesn’t make sense to live far away just because it’s less expensive. You might not have proper access to public transportation, and driving to your workplace far away daily could be costly. So Living nearby can help you cut off some traveling costs in emergency situations.
3. Set up the Monthly Budget
The secret to financial success in high-cost places in the UAE is learning how to live on a budget and save money while staying on rent. Pay close attention to your income and divide up your expenses—from groceries to rent—into categories.
It appears that the solution is to identify the gap between these two financial terms (Needs and Wants) because needs are the requirements for survival. In contrast, wants are optional pleasures that could provide momentary happiness but little long-term satisfaction.
4. Negotiate For Better Terms
Good research is necessary for successful negotiations. Make sure your market research is finished before deciding to rent in a particular location. You can search for comparable houses that have already been sold or rented. This will enable you to negotiate the rent appropriately.
Additionally, search for apartments with features like laundry, assigned parking, and free Wi-Fi. Tenants that do this can save money while staying on rent. You can also request that the landlords handle standard house maintenance, such as cleaning and waterproofing.
5. Look for Apartments in the Off-season
The favourable season for looking for a new apartment is typically summer. First of all, it’s a great time for families to move because the school year is done. Summer vacations also give people greater time to relax and check the availability if they are planning to move out. Additionally, college students are transferring places and taking summer breaks. Many people are searching for new homes to reside in during this period of change in their jobs and school schedules.
To get a better price, try to move and look for an apartment in the fall and winter. During this season, families are busy, children are busy, especially with their schools, and the rental market will be less hectic. As there will be less demand at this time, rental costs may also be lower. Through this way you can save some extra money while renting.
6. Negotiate Your Rent
Negotiating your rent from your landlord can be a great way to know how to save money while renting. To determine the market rate, start by looking up comparable rental costs in your neighbourhood. So therefore it is advised to never be reluctant to negotiate over the rent with your property landlord.
If you have a great rental history or are eager to sign a longer lease term, landlords can occasionally be willing to reduce the rent or offer additional benefits apart from rent. This way you can save a lot of money by negotiating courteously and respectfully.
7. Having a Side Income
Having a side income can help in generating extra money per month for the average person, at the same time it helps in increasing their income. Even though some of these opportunities can be project-based, these opportunities can be great if you are looking at how to save money while renting.
These projects provide flexibility and can be easily finished on the weekends, either before or after full-time job hours. But if you’re currently renting, this is also a terrific chance for you to save and use this additional money for an emergency or an unexpected expense.
8. Go for a Longer Lease
One creative strategy to reduce rent is to sign a longer lease. When tenants sign a longer-term lease—say, 18 months or two years—instead of the typical 12-month contract, many landlords are willing to give them a discount.
Both renters and landlords may benefit from this stability: tenants may enjoy lower rent, and landlords may save money and effort by not having to recruit new tenants constantly. A more prolonged lease can also shield you against rent hikes that occur during the agreement’s terms.
9. Paying Off the Loan
Before you start saving for your dream house, it is advisable to pay off obligations like credit card debt and other personal loans that have high interest rates.
Reducing your liabilities to the lowest can help to manage your expenses while you are saving for your next goal. Furthermore, clearing your debts may raise your credit score, increasing the likelihood that your house loan will be granted.
10. Budget for Utilities
Setting aside money for utilities can help you control your spending and prevent unexpected expenses at the end of the month. To determine how much gas, water, electricity, and other services will cost you each month, start by reviewing previous utility bills.
Based on these estimates, set a reasonable budget and monitor your spending all through the month. By being proactive with your utility bills, you can find areas where you can make savings and take action to fix them.
Making the transition to energy-efficient appliances, such as dishwashers, washing machines, and refrigerators, can result in long-term utility bill reductions. These appliances use less energy but are made to do the same tasks.
Read More: Off-Plan Investment Opportunities in Al-Ameera Village Ajman
Conclusion
Using these strategies, tenants can make well-informed judgments that complement their lifestyle choices and financial objectives at the same time save money while renting. You may keep your costs under control while taking advantage of living in one of the world’s most advanced and vibrant areas with proactive management and thoughtful planning.
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