The private rental sector can be tough – and for many renters can feel like a financial drain.
But, there are ways to make it easier.
Let’s look at how to achieve financial health when renting.
Here’s the good news, you can have both.
Top Tips to Follow
‘Financial health’ can sound like a weird term – but it’s pretty accurate. It refers to the state of your monetary affairs, such as savings.
Time to share some tips for improving it.
Manage Your Lifestyle
Budgeting is hugely important when renting, as failure to do so can limit your ability to save.
Sound easier said than done? Here’s some advice:
- Plan ahead – budget for the month in advance (note: every month is different)
- Track progress
- Put a small amount of money aside as a buffer
- Give yourself goals
- Schedule when to spend e.g. bills, monthly shop
- Spend mindfully – separate needs from wants
Check Your Credit Score
While renting with bad credit isn’t impossible, it can be tough. It’s vital you have a good idea of where you stand.
Check your credit score to gain the insight you need.
Keep a good one by making payments on time and managing your spend. Having a good credit score when renting will make achieving financial health much easier.
Make Sure You Can Afford Your Area
It goes without saying that some areas are more expensive to rent than others.
While being well-connected and living in your dream area sounds great on paper, you’ll need to ensure you can afford it – and won’t be sacrificing other things.
From council tax to bills, there’s a lot to factor in.
A property report can uncover things about an area you may not have found out otherwise, so ensure you do your research properly.
Switch Utility Providers
Is it your responsibility to pay your bills when renting? It’s your right as a tenant to choose your utility provider.
If you feel you’re paying too much, switch energy providers. It’s simple and easy to do – and could save you loads in the long run.
The same applies to switching broadband suppliers.
Why overspend when you don’t need to?
How to Make Renting Count
4m-6m private renters move to a new property each year. With each move, Renters have to verify their income, typically using bank statements.
Canopy not only makes it easier and faster to rent a home, but also cheaper.
It empowers renters to verify their income through Open Banking, and access a range of financial well-being products, improve their Experian credit score and ultimately, accelerate the path to homeownership.
Key features include:
- Rent Tracking – renters boost/build an Experian credit score by tracking monthly rental payments. Renters can now make renting count and use rental payments to build a credit history without having to rely on credit cards. Paying your rent on time can help to boost your score. So when you come to buy a house, for example, this will show on your credit file. Or this could simply make it easier to rent next time, by showing your new landlord your score
- Rental Affordability – helps renters understand the max amount they can afford to spend on rent based on their income and expenses
- Budget planner – helping you build a better and more stable life
- DepositFree insurance plan – say goodbye to your traditional cash lump sum with this new alternative deposit. It also protects you should you lose your job or get ill. If there are any disputes at the end of the tenancy, an independent arbitration system is used
- Support team – offering you great in-class service
In short: it’s your handy companion to help you achieve financial resilience.
You can download the app from Apple’s app store or on Google Play.
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Last Updated: January 25th, 2024
