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You may have come across a rental listing with an attractive rent price, only to discover the actual rent is more than the one in the ad. While this may come off as a surprise, it’s common for landlords to use net effective rent and gross rent interchangeably in rental listings. However, this can make it hard to know how much to budget for rent for both renters and landlords.
We outlined the difference between net effective rent and gross rent to help you distinguish the two types of rent prices.
What Is Gross Rent?
Gross rent is a flat monthly rent price renters are responsible for covering throughout the lease term. Gross rent is typically higher than net effective rent, since it does not account for any promotions landlords may offer.
What Is Net Effective Rent?
On the other hand, net effective rent is the average rent amount that accounts for any discounts the landlord offers. Some landlords add the net effective rent price on their rental listing to attract interest, but this will not match the gross rent amount listed in the lease agreement. Net effective rent is viewed more as a helpful calculation that can help you properly prepare your finances as a renter and income as a landlord.
The landlord can either require the net effective rent each month or only the gross rent for months that are not included in the promotion.
How Is Net Effective Rent Calculated?
Net effective rent is calculated by multiplying the gross rent by the total amount of months a renter is responsible for paying rent. That number is then divided by the lease term, which can be anywhere from six to 15 months.
For more context, let’s say you’ve come across a listing that has a gross rent price of $1,800 and two months free rent on a 12-month lease.
Because of the promotion, the rent the renter is responsible for will average to $1,500 per month — $300 less than the gross rent price. They can pay $1,500 each month (including the months that are considered free) or pay the gross rent price for only 10 months, depending on what the landlord prefers.
Pro tip: Check your lease agreement to ensure your landlord has listed which months you will not have to pay rent.
Find Available Rentals With Realtor.com®
Net effective rent and gross rent both equal the total amount of money that will be paid during a lease term, but can dictate when and how much rent is paid. While it’s normal for landlords to use both rent prices interchangeably, you’ll want to ensure you’re aware of the exact price you’ll need to pay each month during the lease term.
Now that you know the difference between net effective rent and gross rent, visit Realtor.com® to find available rentals near you.
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You’ve decided you want to pay rent online with Avail, but there’s still one step to complete — inviting your landlord to start using our software.
You don’t often hear of renters suggesting new ways for landlords to collect rent, but some landlords may not be aware of new or existing rental property management software. This can then lead to them thinking that physical checks and pen-and-paper records is the only way to go.
At Avail, we work on making the rental process easier for everyone. That’s why we outlined how you (a renter) can easily invite your landlord to Avail in less than five minutes while teaching you about Avail so you can feel confident when recommending our software.
4 Benefits of Paying Rent Payments Online With Avail
While some renters utilize popular platforms like Venmo, Zelle, and PayPal to pay rent, there are a handful of reasons why it’s better to use an official rental property management software like Avail.
In addition to making renting hassle-free, here are five benefits renters experience from paying rent online with Avail:
- Schedule recurring payments with AutoPay: Set recurring rent payments with AutoPay to automatically withdraw your rent each month.
- Focus on your credit health with CreditBoost: You can report your rent payments to TransUnion with CreditBoost, which will help you focus on your credit health for future purchases or even your next rental application.*
- Easily switch your payment method for rent: Switch between paying rent with a debit card, credit card, or checking account each month with no penalty.
- Split rent with your roommates: You’ll be able to see how much each roommate owes in your dashboard, as well as when a payment was received from everyone.
How to Explain Avail to Your Landlord
Suggesting a new process for collecting rent can be daunting to do as a renter, especially if you’re still getting to know your landlord. For that reason, we want you to feel just as comfortable with Avail so you can get them on board.
Here are the answers to frequently asked questions they may have when first learning about Avail.
- Is Avail free? Yes, Avail is free for unlimited rental units. Landlords can also upgrade to Unlimited Plus for $7/unit per month, which can be covered by account credit earned from the Avail referral program.
- Do rent payments get deposited into my account right away? Landlords with Unlimited Plus can take advantage of FastPay, which deposits rent into their account as soon as the next day. Otherwise, the money will be deposited into their account in three business days.
- Is Avail safe to use for rent collection? Yes, all online rent payments are cleared through the Federal Reserve and secured with bank-level encryption.
- How long does it take to set up an Avail account? The initial setup process only takes a few minutes. Once that’s complete, your landlord can schedule payments in advance and handle any maintenance issues directly through their dashboard. Everything from collecting rent to background screening is streamlined to make managing their rentals easy and less time-consuming.
- Does Avail keep track of all payments and receipts? Yes, landlords can easily access all payment records directly through their account in case there’s ever a dispute or concerns.
- Can I use Avail to manage more than one rental property? Yes, landlords can add more than one property to their account to manage all at once.
If your landlord still has questions about Avail, you can refer them to our growing library of educational content that takes a look at every part of the landlording process.
How Can I Invite My Landlord to Avail?
Inviting your landlord to Avail can be done in less than five minutes. Here’s how to do it:
- Create an account: Log into your account to invite your landlord directly from your renter dashboard.
- Click “Invite My Landlord”: Fill out all required fields such as your landlord’s name, email address, and information on the current apartment you’re renting. You have the option to add a message to your landlord where you can politely request to start paying your rent online through Avail.
- Track the status of your invite: Once you’ve successfully invited your landlord, you’ll be able to see the current status of the invitation in your dashboard.
Your landlord will need to create an account and set up the rental property you’re currently occupying in order for you to start paying your rent online.
Include answers to commonly asked questions in your personalized invite to increase the chances of your landlord adopting Avail.
What Are the Benefits of Collecting Rent With Avail for Landlords?
Popular online payment systems occasionally used to collect rent almost always exclude rental property-related transactions from any form of payment protection and can violate the platform’s terms and conditions.
With Avail, landlords can easily advertise vacant units, request rental applications and credit reports, sign leases, and collect rent — all online. Plus, with the Avail Referral program, your landlord can earn up to $500 in account credit by referring 10 friends looking for a rental property management software.
The $500 account credits can cover the cost of Unlimited Plus, future background screening, or Rent Price Analysis reports.
Pay Rent Online With Avail
Surprisingly, recommending a new method for rent collection can be easier than you think. All you have to do is send an invitation through your Avail account and we’ll take care of the rest.
Don’t have an account yet? Create an account today to invite your landlord to Avail. Avoid late fees, pay rent how you want, work on improving your credit score, and much more.
*CreditBoost results may vary by individual.
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]]>The post Paying Rent With Venmo, Zelle, PayPal, and Avail: Which Should You Use? appeared first on Avail.
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Paying rent online is easier than ever with popular platforms such as Venmo, Zelle, and PayPal. These electronic payment platforms can be more reliable and faster than a check, but that doesn’t mean that each site is without their faults. Here’s what every renter should know when considering the best way to pay rent online.
4 Common Ways to Pay Rent Online
While landlords have historically required a personal or cashier’s check as an acceptable form of rent payment, advances in technology mean landlords have new ways to collect rent electronically.
Let’s take a look at the best ways to pay rent online that are safe for both landlords and their renters.
1. Paying Rent With Avail
Avail is a rental management platform specifically designed with the needs of DIY landlords and renters in mind. From digital lease signing to paying your rent online, Avail keeps everything in one place that can be easily accessed from your phone or desktop.
Unlike other mobile payment apps designed to make one-time payments as opposed to recurring ones, Avail gives you the option to set up Autopay, a feature that withdraws your rent on a set day each month, so there’s no need to set your own reminders on a separate calendar or worry if you miss the rent due date.
Avail also makes splitting rent with roommates simple by letting each renter know how much they owe, when the money will be withdrawn, and when it’s deposited into the landlord’s account. Then, all renters are provided a confirmation email with a final receipt of the transaction as proof of payment.
Unlike Venmo and PayPal, Avail categorizes all expenses by type to clearly outline what each expense is for, such as rent, pet fees, security deposits, and more. Plus, if you’re in the process of building your credit, your rent payments can contribute to your overall FICO 9, FICO XD, and VantageScore credit scores with CreditBoost*.
If your landlord doesn’t currently use Avail, they can easily be set up in minutes with a referral link.
2. Paying Rent With PayPal
You may have come across PayPal when purchasing an item or sending money to a friend, but there are some instances where landlords use it to collect rent.
Though setting up an account is free, landlords are advised to set up a business account to avoid getting flagged for behavior that violates PayPal’s terms and conditions.
Business accounts also allow for recurring payments to be set up, but renters should be aware of the risks that come with paying rent through PayPal.
Collecting rent is technically excluded under PayPal’s Purchase program for both personal and business accounts because rent falls under real estate transactions, which are not allowed on the platform.
If you accidentally send your rent to the wrong person, then it may take some time to get your money back, if at all. Your personal account may also be flagged for irregular activity if you’re using PayPal to pay rent and an additional expense, like a $400 pet fee.
3. Paying Rent With Venmo
Venmo is used to pay friends and family for everyday expenses like restaurant tabs, gas, and more. There’s some convenience to setting up a free Venmo account, especially for those with roommates who split rent, though it’s safest to keep this account for personal use.
Similar to PayPal, Venmo offers a purchase program, but any payments that fall under real estate are not eligible for reimbursement. Payments related to your apartment are typically a few hundred to thousands of dollars, so if you accidentally send the wrong amount to the wrong person or need a refund, Venmo can only do so much to get that money back to you.
Even if a landlord has a business account, this doesn’t eliminate the fact that choosing to pay rent with Venmo goes against the platform’s terms and conditions, which can be a huge risk for all parties involved.
Since renters can’t set up recurring payments or rely on customer support when needing a refund, it’s best to use a platform better suited for paying rent.
4. Paying Rent With Zelle
Zelle allows users to send payments directly from one account to another, so long as their bank is supported. There are no fees to send payments to others, but recipients will need to have a bank account that accepts Zelle. Unlike Avail, payments cannot be scheduled in advance so you’ll often be required to set up additional reminders to avoid paying a late fee.
If you don’t have a Zelle-affiliated bank account, then the most you can send in a week is $500. If you want to open a new bank account to be able to send more, it’s important to note that payments related to your apartment are not protected by any program since all requests are final once submitted.
Landlords also have no official way to track property-related transactions, since all Zelle payments must be set up using a personal checking account as opposed to a business one connected to an LLC.
This means that any payments made in connection with a business or commercial enterprise will violate the platform’s terms and conditions, resulting in a suspended payment or termination of the account.
Paying Rent With Avail vs. PayPal vs. Venmo vs. Zelle Comparison
How to Set Up Your Landlord on Avail
There are various platforms that allow renters to pay rent online, but only some are specifically intended to support rent transactions.
If your landlord currently uses Venmo, Zelle, or PayPal to collect rent, you can always invite them to create a free Avail account so that you can safely and reliably pay your rent online. You can follow these easy steps to get started:
- Create a free Avail account: Sign up for Avail to easily create your own account.
- Send an invite to landlord: Provide your landlord with a shareable link to create an account with Avail, as well as information on how to set up their account for free.
- Schedule your rent payment online: Once you’ve made your account, you can opt to pay rent with a credit, debit card, or checking account.
- Turn on Autopay: Schedule any upcoming rent payments with Autopay.
Securely Pay Your Rent with Avail
Paying rent on-time and securely is the first step to having a positive experience when renting an apartment. With Avail, you’ll never have to worry about purchasing checks or sending the wrong amount to the wrong person again.
Learn more about online rent payments with Avail to start conveniently paying your rent online each month from the comfort of your home.
*CreditBoost results may vary by individual.
The post Paying Rent With Venmo, Zelle, PayPal, and Avail: Which Should You Use? appeared first on Avail.
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No one wants to be put in the tight spot of being short on rent, but sometimes it happens. A sudden loss, personal emergency, or something like a global pandemic can put even the most prepared renters in a tough spot.
When worse comes to worst and you find yourself unable to pay rent, follow these pointers to help you navigate your best options.
5 Things To Do When You Can’t Pay Rent
While not every renter’s circumstances are the same, these five tips are a good starting point for renters who can’t pay their rent.
1. Check Your Lease
Before you do anything else, check your lease to find out exactly what your legal agreement says about paying rent — sometimes leases will allow for a grace period within the contract, or detail what your landlord’s options for recourse are, such as late fees. This will help you determine if you still have time to pay your rent or if you need to plan for another scenario.
2. Communicate With Your Landlord
One of the most important things you can do in a situation where you can’t pay rent is to be communicative with your landlord during the process. Although these conversations might be difficult to have at first, maintaining an open and honest discussion with your landlord will hopefully allow for some clarity and understanding when determining how to handle the situation.
Explain to your landlord why you can’t pay your rent — make sure to be specific about your circumstances and whether you’ll be able to pay a portion of the rent or none at all. A landlord will often request proof of financial hardship (this is a policy in some states during COVID-19), so be sure you have documentation like pay stubs or a letter of termination to back up your claim.
Next, ask your landlord if they’re open to other payment options, including paying rent on a later date (rent deferment), or paying it off in installments as opposed to the full amount upfront (a rent payment plan). See if one of these payment plans works for them, and be sure to get any new agreements in writing (preferably as an amendment to your lease) to avoid discrepancies in the future.
Be sure to have this conversation before your rent due date, as you will be more likely to reach an agreement with your landlord when they have time to prepare.
3. Look Critically at Your Budget
Once you have spoken with your landlord — and hopefully worked out some kind of agreement — the next step is to examine your budget. Perhaps you had a rough month financially or there was a costly emergency. Regardless of how you got to where you are now, it’s smart to assess your budget to try and avoid a late rental payment in the future.
Of course, there are circumstances where you aren’t able to rearrange your budget and may be faced with making hard choices between rent and other necessary expenses. If this is the case, make sure you communicate this to your landlord. Avail found that many landlords are willing to work with their renters during hard times (like the COVID-19 pandemic) to formulate some sort of rent payment system or other option.
4. Seek Out Places To Go for Rent Assistance
If you foresee a point where you could be facing an eviction or a termination of your lease, research what organizations are in your area and can help. Some groups that assist with rent include:
- The Salvation Army can provide one-time assistance if you are low on rent, as well as funding for utility bills. Any requests can be made through your local office.
- The U.S. Department of Housing and Urban Development provides rent relief through its Section 8 clause. A subsidy covering the difference between 30% of monthly rent and the total monthly rent will be paid to your landlord directly by the department on your behalf. This means that, though the majority of your month’s rent will be covered by the department, you will still be responsible for the other 30% of a given month’s rent. To see if you qualify for Section 8 funds, visit their website.
- Modest Needs offers rent grants for up to $1,000 as a one-time payment in case of an emergency. Visit their website to see if you qualify.
- Some local and state-level programs have also been enacted during COVID-19, including rent relief programs in these 11 states and local rent assistance programs like the COVID-19 Eviction Defense Project in Colorado.
- Emergency Rental Assitance program: The emergency Rental Assistance (ERA) program provides eligible landlords and renters with up to a year’s worth of rental assistance funds through state and local programming. Learn how to apply for the program and frequently asked questions about ERA.
5. Know Your Renter Protections
It’s important that you understand your rights as a renter in terms of current eviction policies in your area, since many cities and states have eviction moratoriums in place or have banned evictions altogether during the COVID-19 pandemic. This means that even if you can’t pay your rent, you cannot be evicted for a period of time set by the moratorium or by state guidelines.
Make sure that you’re also prepared to discuss rent payment issues with your landlord and offer evidence of financial hardship. Whether or not your landlord offers a rent payment plan, utilize local, national, and federal rent relief programs when possible.
For additional information on rent relief and rent assistance programs, check out consumerfinance.gov, which details federal protections for renters, legal resources, and where to get additional help if you can’t pay your rent.
Read more about renter and landlord challenges in this data-driven report, including how renters across the U.S. are paying their rent and what their main rental concerns are during the COVID-19 pandemic.
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When you live with roommates, one of the most complicated topics of conversation can be discussing how to split up the rent. While there are many viable options for splitting rent, and there is so one-size-fits-all, it’s important to consider each option and figure out what works best for you and your roommates.
Here are some of the most common ways for roommates to split rent, how to calculate what each roommate should pay, and how to make split rent payments.
What’s the Best Way for Roommates to Split Rent?
There are plenty of ways to split the rent (some more creative than others), but these four are the most popular among renters:
Split the Rent Evenly
The easiest option is to split the rent evenly among your roommates. This method does not factor in variations in room size, individual incomes, or cost of living. Because splitting the rent this way establishes everyone at an equal fiscal level, it works best when you and your roommates have relatively similar room sizes and amenities.
If those factors don’t matter or keeping track of finances between roommates is not something you are concerned about, this is probably the option for you.
Split the Rent by Room Size and Amenities
Another popular option is to split the rent by room size or other apartment amenities (like parking spots, ensuite bathrooms, walk-in closets, etc.). This is a smart choice if there are clear differences in the way that each roommate lives and the apartment resources that they have access to. For instance, if only one roommate uses the apartment’s parking spot for their car, it’s most sensible for that roommate to pay the extra fee for parking.
Many roommates also choose to split the rent based on bedroom size. To get an appropriate calculation for how much each roommate should pay depending on the size of their room, take the square footage of each room and divide by the total square footage of the apartment. This will give you a percentage for the size and value of each room, which you can apply to the total cost of rent.
Split the Rent by Income
Another way to split rent is to adjust each roommate’s portion of the rent depending on their individual incomes. As this can be a sensitive topic even among the closest of roommates, it’s best to discuss how much rent each person can take on depending on their finances. If one roommate is earning significantly more than the other roommates, they may be willing to pay more in rent. This rent-splitting strategy is less common, and often works best between couples who are already sharing other expenses.
Split the Rent Using a Rent Calculator
If you would rather not leave rent up to your own judgements, consider using a rent calculator to do the work for you.
Spliddit is a free site where you can divvy up what each roommate brings to the table. Not only will Spliddit calculate what each person owes in rent each month, but it will also give an explanation of how and why the final calculations are fair.
Splitwise is a similar tool, but a little more straightforward, and can also be used to calculate other expenses, like shared trips. If you want to calculate rent divisions quickly, Splitwise’s simple calculations are probably the way to go.
What’s the Best Way to Pay Rent With Roommates?
Once you all come to an agreement about how you will split rent, make sure you get it in writing. Then check your lease or check in with your landlord to find out how you can best split up rent payments — some landlords will accept separate rent payments from each roommate, but some won’t. If your landlord won’t take separate payments, you’ll need to determine which roommate will be in charge of paying the full amount to the landlord each month.
If your landlord uses an online rent payment platform like Avail, you and your roommates can easily split up rent and pay your landlord separately. Each roommate can see a monthly charge for what they owe individually, and can see when other roommates pay to ensure rent gets paid on time. Because rent is one of the month’s bigger expenses, renters also have an option to boost their credit scores with each timely rent payment.
While broaching the subject of splitting up rent with roommates can be uncomfortable, having this conversation is necessary and will be helpful in the long run. Regardless of what you decide, it’s essential that you figure out a system of rent that all roommates can agree on, get the agreement in writing in order to avoid any rent disputes down the line, and find a simple and easy-to-use payment platform that works best for your rent payment needs.
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Making monthly rent payments online is an easy way to simplify your life. And if you choose to use a credit card for those payments, you might be able to accrue extra benefits while you’re at it.
From choosing a card with valuable rewards to boosting your credit score as you build a history of on-time payments, being strategic about your biggest monthly bill can have a positive impact on your overall financial health.
How to Pay Rent With Your Credit Card
The first step is asking your landlord if they allow renters to pay rent online. If they do, find out which platform or rent collection app they use and make sure it’s trustworthy and secure. If they don’t accept online payments, you can invite them to use the secure payment system through Avail.
With Avail, you can pay rent with a bank account, credit card, or debit card — whichever method you prefer. You can log in to make individual payments, or set up automatic payments for the same time each month using Autopay. If you and a roommate split the rent, you can each set up your own profile and payment amounts rather than having to coordinate reimbursement every time. You can also choose a day for the funds to be withdrawn, with information on when the payment will deposit in your landlord’s account so you can avoid late fees.
However, there are other options as well like PayPal and Venmo, but they often have less payment protection in place for rent-related payments.
What Are the Benefits of Paying Rent With a Credit Card?
Credit bureaus calculate your credit score using a variety of factors meant to predict the likelihood that you’ll be able to repay your debts on time and in full. The higher your credit score, the better your odds are of being approved for loans, offered lower interest rates, and looking like a prime candidate to future landlords.
To boost your FICO® score (the credit score referenced in 90% of all lending decisions), the single best thing you can do is to never miss a bill payment. When you pay your landlord by check or cash, it’s up to them to report the payment — but it’s not required that they do so. As a result, many tenants don’t get their good behavior reflected in their credit score.
Paying by credit card, however, ensures the payment is automatically reported to the credit bureaus. It also gives you the option to set up recurring payments to ensure you never miss a deadline. Using a credit card also allows you an extra level of flexibility if the rent is due a couple days before your next paycheck arrives.
Be careful here though: The benefits of using a credit card to pay rent only work out if you’re able to pay off your credit card balance promptly each month. If not, you’ll be charged interest and your credit utilization (another factor in determining your credit score) can start to work against you if your balance creeps up.
What Are the Best Credit Cards for Paying Rent?
Generally, you want to choose a card with no annual fee, a low interest rate, and the best perks for your lifestyle. If you know you have the financial stability to immediately and fully pay off your credit card balance every month, the interest rate is less of a factor, but in general it’s best to avoid high interest rate cards.
Cards that offer cash back for monthly purchases over $500, for example, could be a great choice if you know your rent payment is more than that. By making that one payment every month, you’ll earn cash back every time. Making rent payments with a credit card usually includes a small processing fee (3.5% through Avail), and while many renters find paying with a credit card to be worth it despite the fee, be sure to account for it in your budget.
Credit cards that offer travel rewards may also be a good perk. Some cards offer 50,000 airline miles if you spend at least $2,500 within the first three months of opening the card. Since rent payments are a larger, fixed cost, you’ll know before you apply for the card if you can meet the threshold for the perk.
Rewards toward “everyday spending” are another category of credit card perks that could work in your favor. The more you use these cards, the more cash-back rewards you can accumulate toward household expenses like groceries and streaming services, often with no expiration date for use.
Ultimately, the best credit card to use to pay rent is the one that yields the biggest benefits for the way you spend money.
Should I Pay Rent With a Credit Card?
If you can easily pay off the rent amount before the next billing cycle to avoid accruing interest, then paying with a credit card may be a good idea. If that’s not the case and you struggle with credit card debt, then it may make more sense to pay rent with a debit card or checking account to save on fees and avoid having to pay interest.
Most payment platforms also charge higher fees when paying with a credit card versus a debit card or checking account, which is another factor to consider.
Does Paying Rent With a Credit Card Affect Credit Score?
Paying rent with a credit card can affect your credit score if you’re unable to pay off the amount before the next billing cycle. In those instances, your credit score may change if your credit utilization increases or you’re unable to make consistent on-time payments.
If you’re looking to build your credit, you can pay rent with a debit card or checking account and report those on-time payments to TransUnion with CreditBoost.* For $3.95/per reported month, you can build your FICO 9, FICO XD, and VantageScore credit score with each on-time rent payment. You’ll need to invite your landlord to join Avail, but you can easily take advantage of CreditBoost once your landlord has set you up to pay rent online through the platform.
Pay Rent Online With Avail
The process is quick and easy on Avail and comes with the option to turn on CreditBoost to build up your credit score with timely rent payments. Create an account today to invite your landlord to join Avail and get you set up to make online rent payments.
*CreditBoost results may vary by individual.
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Negotiating rent can seem like a daunting task, especially if you’re not accustomed to bargaining or have never done it before. Whether you are a returning renter or you’ve found a new apartment that you love but it’s just outside of your budget, negotiating rent with your landlord can be an advantageous next step.
To guide you along the process, we share how to negotiate rent while remaining polite and fair.
How to Negotiate Rent As a Returning Renter
Oftentimes, landlords will adjust rent to a higher price each year to accommodate inflation and tax rate increases in your area. If this is something you anticipate happening in your apartment building and you plan on renewing your lease, here are a few things to keep in mind if you want to avoid a significant rent increase.
1. Plan Ahead
Ensure you are asking to negotiate rent within a reasonable amount of time before your lease ends, which is typically 60 to 90 days before the lease end date. If you ask just weeks before the end of your lease, you are less likely to have your request considered or approved.
2. Make a List of Outdated Features of the Rental
It is also important to have a game plan in mind for the points you want to make while discussing your rent. To ensure your expectations are realistic, it may be helpful to compile a list of outdated apartment amenities that can justify lowering the current rent price.
If you can prove that certain features in the rental are outdated and contribute to a negative renting experience, then this can potentially help in convincing your landlord to reduce the rent price or install new amenities before the new lease term starts.
3. Offer Documentation
Whether you present your case in-person or virtually, it is essential to have important documentation on hand to build your case when asking for a lower rent. Some examples of this might be to highlight your strengths as a renter, show your new and improved credit score, or present example prices for similar rental listings in your area, which can be found on a variety of apartment-listing websites.
If your credit score is something you are looking to boost before you have this conversation, consider using a platform like CreditBoost that can help you improve your credit score by making rent payments on time*.
4. Sign a Longer Lease
Since finding new renters is quite a hassle for landlords, your landlord might be more inclined to let you sign a longer lease at a discounted rent rate if you’ve been a great renter. Longer lease terms generally range from 13 to 24 months, depending on the landlord and local landlord-tenant laws.
How to Negotiate Rent As a Prospective Renter
The key to negotiating rent as a newcomer to an apartment is looking for something to offer the landlord in exchange. If it comes down to dollars, look for ways in which services or maintenance can be put on the table when discussing a cheaper rent price.
1. Pay Rent in Advance
Some renters offer to prepay several months in advance for a slightly lower rate. Keep in mind that while some landlords allow this, many don’t, so be sure to check with the landlord first.
2. Time the Market
During peak rental season (usually the summer months), rent rates will be higher since demand is higher. But if you move outside of these peak moving months, you may have more room to negotiate your rent or find rent-related deals on apartments.
3. Assess the Quality of the Amenities
If you can live with giving up something like a parking space that comes with the building, you can avoid the associated costs and help lower your rent.
If there is something about the apartment that you believe could be updated or added within reason, such as newer appliances, a parking spot, or an AC unit, be sure to bring these up to your future landlord to further your case for a lower rent.
4. Have a Rental Resume
For a prospective renter, having a rental resume allows landlords to gain a sense of how trustworthy you are as a renter, highlighting your past apartments, your education, any information about you and your roommates, credit score, work history, or anything that may be relevant to a landlord.
Report On-Time Rent Payments With CreditBoost
The important thing to remember when negotiating rent is that, in the end, both parties should be content with a mutually agreed-upon price. That might require friendly negotiating with a landlord and compromises made on both sides, which may seem intimidating at first, but can be accomplished with a friendly conversation and a proper plan. To know if you’re satisfied with the final decision, ask yourself: Is what comes with this negotiation worth the effort?
Once you’ve determined the best way to negotiate a rent price with your landlord, invite your landlord to join Avail to allow you to report on-time rent payments to TransUnion with CreditBoost. Create an account to easily build your your FICO 9, FICO XD, and VantageScore credit score all in one place.
*CreditBoost results may vary by individual.
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Almost half of all U.S. renters spend more than 30% of their income on rent, which is why it’s important to know how to budget for an apartment to avoid financial hardship. Considering rent prices are anticipated to rise, properly budgeting for rent can ensure you don’t overpay in rent and have enough income to cover other monthly expenses.
In this article, we walk you through the process of budgeting for an apartment to help you save on costs.
Rent Budgeting Rules to Follow
There are two widely-accepted budgeting rules you can use: the 30% rule and the 50-30-20 model. Here is how both rules differ from one another to determine which method makes the most sense for you.
The 30% Rule
The 30% rule suggests you should try to spend around 30% of your gross income on rent. However, more financial experts are turning away from this rule since more renters are paying more than 30% due to inflation and the growing costs of renting.
The 50-30-20 Rule
According to this model, 50% goes towards fixed expenses, 30% goes towards “fun” costs, and 20% is set aside for savings. This budgeting rule provides more flexibility on how much to spend on rent, which is why experts recommend using this method instead of the 30% rule.
How to Budget for an Apartment
When budgeting for an apartment, there are certain steps to complete. Here are steps to help you determine how much to spend on rent and other renting-related expenses.
1. Determine Your Current Monthly Expenses
While budgeting can be an effective way to manage your finances, it only works if you account for all of your monthly expenses. For that reason, determine what your total monthly costs are, what bills you need to pay each month, and how much you can afford to spend on rent. Keep in mind that some costs can vary throughout the year, so account for seasonal changes based on previous charges.
2. Forecast Renting-Related Costs You’ll Need to Cover
Once you’ve determined what your current expenses are, consider what renting-related costs you’ll need to cover. Examples of costs include:
- An application fee
- Moving expenses
- A security deposit or move-in fee
- First month’s rent
- Pet fee and pet rent (if applicable)
- Monthly parking fee
- Renters insurance
- Utilities (i.e., internet, gas, electricity, water)
These costs vary depending on where you live, so get estimates to help you figure out how much to budget.
3. Use a Spreadsheet or a Budgeting App to Manage Finances
Actively tracking your monthly expenses can help you stay within your budget and cut down on costs that make it harder to build an emergency fund. A spreadsheet may make more sense if you prefer to track your expenses manually. But a budgeting app can streamline the process for you if you prefer a less time-consuming option.
6 Tips for Budgeting for an Apartment
In addition to budgeting for an apartment, some tips and tricks can help you save on expenses as a renter and reduce the financial burden of renting. Here are some tips for first-time and seasoned renters:
- Use a budgeting app to track your monthly spending
- Save up to three months of rent before moving to a new rental
- Look for rentals that include utilities in the rent price
- Use apartment-hunting sites to find rentals within your budget
- Create an Avail Renter Profile to save on application fees and limit credit checks
- Thoroughly review the lease to avoid violating rules that result in expensive fees
- Get renter’s insurance to protect your personal belongings
Save on Application Fees With Avail
Budgeting for an apartment is a great way to save money as a renter and feel confident during your search. Once you’ve determined how much rent you can afford, you can explore apartment-hunting sites to help you find local rentals near you. To help you save on application fees, you can create an Avail Renter Profile to easily share your profile with multiple landlords and retract your information once you’re no longer interested in a rental property.
Create an account today to fill out your profile and share it with landlords in minutes.
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What if you could win prizes just by paying your rent?
We’re kicking off the first-ever Pay Rent, Win Prizes giveaway, and you’re invited.
Here’s How It Works:
1. Anyone can enter to win by signing up below and clicking “Daily Bonus Entry.” You can enter for a chance to win once a day, every day until the end of the giveaway.
2. Click “Schedule Rent” to start paying contactless rent through Avail.
3. Click “Share on Facebook or Pinterest” to invite your friends. When your friends sign up, you earn more entries to win.
4. Last but not least, click “Check out CreditBoost” to learn how to improve your credit by reporting on-time rent payments.
Here’s What’s up for Grabs:
- KitchenAid Mixer (1)
- Oculus Rift (1)
- Beats by Dre Headphones (1)
- $100 Netflix (1)
- $50 Target (2)
- $25 Dominos (4)
Signing up to win takes just a few clicks. Simplify the way you pay rent, start using contactless payments, and stop worrying about paying on time.
Enter to Win Now:
Double Your Winnings
Want to double your prize? It’s simple — just set up Autopay in your Avail account. Autopay puts your rent payments on cruise control so you never have to worry about scheduling or making a payment, and you can forever avoid late rent fees.
If you’re chosen as the winner and you have Autopay activated in your account, your prize will be automatically doubled!
Boost Your Credit by Paying Rent
Did you know you can help boost your credit by paying your rent on time each month? Avail offers renters the ability to build their credit by reporting rent payments through CreditBoost.
Avail will report your on-time rent payments to TransUnion every month to help you improve your credit score. You can choose to report future on-time payments made through Avail, or up to 24 months of past payments, regardless of how you paid*.
Learn more about CreditBoost and start getting something in return for your rent payments.
*CreditBoost results may vary by individual.
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Paying rent online is the easiest, most straightforward way to get money to your landlord each month. It’s convenient, contactless, and doesn’t require stamps, envelopes, or mailboxes.
Here’s how you can start paying your rent online (with a bank account or credit card), avoid any late fees, and help boost your credit score with the rent you pay.
What’s the Best Way to Pay Rent Online?
When you’re initially looking at rental properties, it’s a good time to ask the landlord whether they accept online rent payments. Many already do and likely use one of several different platforms. Examples of these platforms include:
- ACH electronic transfer: This is a simple way to pay rent online from your bank account to your landlord’s. While this method is more secure than a paper check, payments can take three days to process and deposit to your landlord’s bank account.
- Direct money transfer apps: Some landlords prefer to use money transfer apps like Venmo, Zelle, and PayPal to collect rent. Although these apps are convenient, payment protection isn’t guaranteed. You also won’t be able to report on-time rent payments, or split payments between roommates.
- Rent collection apps: A rent collection app is one of the best ways to pay rent online. Some options like PayRent and RentTrack are exclusively for rent collection, while platforms like Avail allow you to handle other parts of renting as well. These apps tend to offer features like reminders, the ability to set up automatic payments, and credit-building incentives.
If you want to pay rent online through a rent collection app, invite your landlord to Avail. They’ll receive an email and assistance setting up their profile, and you’ll be able to easily pay your rent from anywhere while your landlord receives the payment directly into their account.
How Do Online Rent Payments Work?
Setting up online rent payments through Avail is simple. Once you set up a renter profile, you’ll be prompted to set up your preferred payment method. Choose the amount of rent you want to pay and when you want to pay it. You can see when your landlord will receive the money in their account based on the date you select. This way, you can make sure your rent always arrives on time.
Here’s how it works:
1. Pay Your Rent Online With a Bank Account, Debit, or Credit Card
With Avail, you have the option to pay rent with a bank account, debit card, or credit card. Most renters opt to pay their rent using a bank account, but since rent is one of the month’s more significant expenses, some renters prefer to pay with a credit card to maximize their rewards.
You can also connect multiple payment methods to your Avail account. This way, you can switch between payment methods depending on the month or your budget.
2. Set up Automatic Payments and Avoid Late Fees
It’s not fun to be hit with a late fee on top of your rent — especially if you just forgot to pay. With Avail, you can set up Autopay in your account so this doesn’t happen. Specify the rent amount and payment date, and each month the funds will be deposited into your landlord’s account so you don’t have to think about it.
3. Split the Rent With Roommates
Splitting the rent with roommates can complicate rent each month, but Avail helps you break it down. If you’re paying the rent with roommates through Avail, you’ll be able to see what each person owes, the date each roommate’s rent money was withdrawn, and the date that rent money will arrive in the landlord’s account. It’s easy to see who hasn’t paid if there’s a remaining balance.
4. Build up Your Credit With Rent Payments
Rent is probably one of your most significant monthly expenses, so it’s worth getting something for it. In most cases, renters cannot report rent payments to a credit bureau on their own, but rent collection apps like Avail make it easy to do so with each payment.
With CreditBoost*, you can report your on-time rent payments to Transunion every month to help you build your credit for $3.95 per reported month. You can also report past payments so you don’t miss out on raising your credit with the rent you’ve already paid — even if you paid rent in cash, Avail can help you report up to 24 months of past rent payments.
Securely Pay Your Rent Online With Avail
There are plenty of ways you can get money to your landlord each month, but it’s smart to use a platform built for online rent collection. All electronic rent payments with Avail are cleared through the Federal Reserve, which is the gold standard for transferring money between banks and unrelated parties (i.e., a renter and a landlord). All account information is secured with bank-level encryption, so you don’t have to worry about your data getting out.
Unlike other payment platforms, Avail lets you know the exact date your rent money will hit your landlord’s account. Given varying processing times, this is important to ensure you avoid any late fees.
Plus, all of your rent payment receipts are stored in your account. When you make a payment, you’ll get a confirmation email and a final transaction receipt, so if you ever need proof of payment or access to payment history, it’s easily accessible.
If you’re ready to avoid late fees, use your chosen payment method, and report on-time rent payments, create an account to invite your landlord to join Avail today.
*CreditBoost results may vary by individual.
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