4 Reasons Tenants Struggle With Their Rents
It is no longer a secret that the economy is experiencing a downward spiral and is in need of urgent attention to get it back on track. While we wait for that to happen, we all have a duty to survive whatever the economy throws at us in order to survive the crunch. One of the biggest fallouts of a poorly managed economy like ours is our inability to sustain our rent. More and more tenants are struggling to meet up with their rents, which can be traced to some of the following reasons:
This is the biggest challenge facing tenants as many people are not financially disciplined. An example of this is when a tenant continues to spend lavishly without being mindful of an impending rent issue.
Leaving above one’s means
Experts have advised that setting aside between 25% and 30% of one’s rent is usually the best way to cover your rent without issues. What this means is that a tenant should only rent a property that 25% to 30% of his monthly or annual income can sustain. Setting aside anything above 30% of your income could affect other plans including school fees and other recurring expenditures.
When your bills continue to spiral out of control
A tenant’s inability to control his bills can also lead to issues when his rent is due. Telephone bills, entertainment and a couple of others should be brought under control.
When you save less than 5% of your income
The economy may not be doing too well, but it shouldn’t discourage savings. As a matter of fact, saving at least 5% of your income will help you cushion the effect of paying your rents and probably buying a property of your own.