It\u2019s the news no tenant wants to hear: the rent is going up.<\/strong><\/p>\n But while no one wants to fork out more cash than necessary, it is possible to survive a rent rise \u2013 using a healthy dose of realism and some planning.<\/p>\n Belinda White, who runs The Fierce Girl\u2019s Guide to Finance<\/em>, a \u201cfinancial literacy resource for smart women\u201d, says it\u2019s wise to plan for potential rent hikes.<\/p>\n \u201cRental rises are governed by laws in each state and the restrictions on how often they can be imposed, and by how much, varies from state to state, so there are some protections for you as a tenant,\u201d she says.<\/p>\n Try and save money above and beyond the rent for emergencies, but also long-term goals like a home deposit. Picture: Getty<\/p>\n<\/div>\n \u201cHowever, it\u2019s best to assume that rent increases are a fact of life every year or two. Then, if you don\u2019t get one, happy days!\u201d White says.<\/p>\n Tenants should \u201cfactor in\u201d possible rent hikes and not choose a property which stretches them to their limit, she says.<\/p>\n \u201cThe bigger buffer you give yourself with fixed costs like rent, the easier you\u2019ll sleep at night.\u201d<\/p>\n White says consistently putting money away can also help soften the blow.<\/p>\n \u201cIt\u2019s always a good idea to have an emergency fund for anything life throws up at you; ideally at least three months\u2019 living costs, ie rent, bills and groceries.<\/p>\n \u201cBut even a month\u2019s savings is better than nothing and can really help get you out of a pickle, without resorting to costly credit cards,\u201d she says.<\/p>\n Another trick is to offset rent rises by keeping a close eye on the other costs of renting, like insurance, internet and energy<\/a> bills.<\/p>\n \u201cYou can often get a better deal after a year or two by shopping around or negotiating with your current provider. Don\u2019t be afraid to talk them down,\u201d White says.<\/p>\n For many tenants, a rent rise prompts them to consider moving, but don\u2019t be rash.<\/p>\n \u201cDon\u2019t be afraid to negotiate! As annoying as it is to move, it\u2019s also annoying for a landlord to find a new tenant. Check the local market and see if you can convince them of a reasonable amount,\u201d she says.<\/p>\n \u201cIf it really is a done deal, do the sums. Is the annual cost as much as a removalist? What about the mental stress? It\u2019s going to come down to the questions of can you afford the extra rent and the extra stress?\u201d White says.<\/p>\n Renting can also be a \u201cdry run\u201d for life with a mortgage<\/a>, according to White.<\/p>\n \u201cRenting is definitely the time to form good habits that set you up for success later. Find a budget system that works for you; whether it\u2019s an app, a spreadsheet or a nice notebook. Track your spending and look for leakages,\u201d she says.<\/p>\n White recommends a free budgeting app from the Federal Government called TrackMySpend.<\/p>\n \u201cIt can be a real eye-opener! Try and save money above and beyond the rent for emergencies, but also long-term goals like a home deposit.<\/p>\n \u201cThere are advantages\u00a0of renting, but in the long-term, home ownership can provide the peace of mind that comes with \u2018owning your own patch\u2019 and is often a good way to build wealth,\u201d White says.<\/p>\n
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