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Renters Save With Lease Renewal

Photo Source: Supermama

Renters, did you know that by renewing a lease instead of moving to a new rental you can save thousands of dollars? Well, Zillow has just released an analysis that points out the potential savings, and how those savings could go to a potential down payment on a home.

Researchers found that an average $3,946 in savings by assessing the most recent data from the United States Census Bureau. Findings reveal that the market rate rose more than the rent for a tenant who remained in the same rental for five years or more. The savings, however, depends largely on location.

Dr. Svenja Gudell, chief economist at Zillow said “With the country in the middle of an affordability crisis, it is important for renters to understand how much they can save if they renew their lease instead of finding a new rental unit. Nationally, rental rates have slowed and the savings from renewing are not as significant for renters today; however, in some of the hottest rental markets, where rents are still rising aggressively, continually renewing a lease can mean saving thousands of dollars.”

 If the rental unit is good for the tenant, and it generates savings that could possibly go toward home ownership why wouldn’t any renter consider lease renewal?   

Save Rent Money, Don't Move [Zillow]