House rental prices have been escalating significantly across the nation for an extended period, particularly in major urban areas. As per the latest Rental Update by Magicbricks, for instance, between July and September 2024, average rents increased 7.4% quarter-on-quarter across 13 major Indian cities to INR 35.8 per square foot per month – the highest increase in the last two years. Chennai recorded the sharpest increase at 22.2% QoQ, moving from INR 17.94 psf in Q2 2024 to INR 26.91 psf in Q3 2024. Delhi and Thane also saw significant jumps, with Delhi’s average rent rising 11.4% QoQ to INR 37.55 psf and Thane’s rent increasing 10.9% QoQ to INR 33.10 psf.

Due to the steep increases, thus, rent often constitutes a considerable portion of an individual’s monthly expenditures. If you reside in a rental property and are seeking ways to economize, consider the following strategies.

Incorporate rent into your monthly budget

In the current economic climate, rent represents a major financial obligation that requires careful consideration. Prioritize setting aside your rent before allocating funds for other expenses in your monthly budget. This approach will enable you to assess your overall financial situation more effectively and make necessary adjustments.

Also Read: Fixed Deposits: 7 banks offering more than 8% return on fixed deposits

Utilize online payment methods for rent

The era of exclusively cash-based rent payments is behind us. Today, you can conveniently pay your rent online through various payment applications and credit cards, potentially saving up to 10% of your monthly rent through cashback and other promotional offers. Additionally, automating your rent payments can help you avoid late fees.

Adhil Shetty, CEO of Bankbazaar.com, states, “Using credit cards can provide savings on your monthly rent. By paying rent with credit cards that offer cashback and other appealing incentives, you can benefit financially. Furthermore, utilizing UPI or similar applications for rent payments can also help reduce expenses.”

Minimize unnecessary expenses

Housing is a fundamental cost that must be accounted for. Nevertheless, you can still achieve your savings objectives by minimizing unnecessary expenses such as streaming service subscriptions, access to swimming pools, gym memberships, and similar items.

Reduce utility expenses

Water and electricity can become significant costs if not managed wisely. There are numerous strategies to decrease your consumption of these utilities to lower your bills. For instance, you can reduce electricity usage by taking advantage of natural light and ensuring that appliances like fans and lights are turned off when not in use. Consider switching to energy-efficient lighting options such as CFLs or LED bulbs. Additionally, various credit cards and online payment platforms provide cashback or discounts on utility bill payments, which can further enhance your savings.

Also Read: Mutual Fund SIP Investment: Should you revisit your SIP contributions amid market volatility?

Seek reduction in rent

Engage in discussions with your landlord to seek a reduction in your rent. If you have been a reliable tenant, your landlord may be inclined to consider your request. The renewal of your lease or rental agreement presents an opportune moment to approach this matter. Typically, rental prices are adjusted by approximately 10% each year, so successfully negotiating a lower increase can lead to substantial savings.

Consider finding a roommate to share rent

If your rent is substantial and your living space can accommodate another individual, consider inviting a flatmate. This arrangement can lead to savings on rent and other shared expenses.

Explore alternative housing options

Certain neighborhoods within a city may command higher average rents than others. Additionally, larger homes typically incur higher rental costs compared to smaller ones. Assess your requirements and contemplate relocating to a different area or opting for a smaller residence to reduce your rental expenditures.

Implementing these strategies can assist you in managing your expenses effectively, particularly when faced with the burden of high monthly rent.