Let’s assume you currently pay $1200 per month in rent.

A common misconception is that you need 20% down in order to purchase a home. False. If you have good credit, you need as little as 3% down.

For this example I’ll use the home below, listed at $394,000. This home is a 3 bed 2 bath constructed in 2013. It is located on the east side within 2 miles of downtown.

It has 2 extra bedrooms for you to rent out to friends. The home is in a desirable area for young singles to live, and is a pretty neat place.

Rooms in this area typically rent out for $750-$1000 per month depending on the quality of the home.

To purchase this home using 5% down, you only need $19,700.

As you see below, monthly payments for the mortgage on this home, including principle, interest, taxes and insurance, land you at $2,890 per month. That is for everything!

Now, let’s assume you rent each room out for $850 a month to be conservative.

Suddenly you are only paying $1,190 per month, and you own your new home. All the while, your roommates are paying $1600 of your monthly mortgage.

This is completely doable, and a very smart way to build valuable equity in a home instead of spending it all on rent.

Reach out to a realtor like myself and run the numbers. It is worth it! I do this with clients all the time, and I promise it will pay off!

There are 3 options when it comes to renting in Austin. You can rent an apartment, a home, or a condo (there are different variations including town homes, attached or detached).

The process for renting an apartment is different than renting a condo or home. Apartments are owned or run primarily by large management companies; whereas homes and condos are privately owned by individual investors, and are rented out using realtors in the Austin market.

Knowing which route you want to take will help you save time in your search. If you aren’t sure which you’d like to end up in, no worries, you can always run both searches at the same time.

I highly recommend using a realtor or apartment locator. First off, we are FREE to use in Texas. If you rent an apartment, the complex pays the realtor. If you rent a condo or home, the owner of the home pays the realtor commission. So either way, its in your best interest to use a realtor.

The real reason to use a realtor is to save TIME and MONEY. Realtors typically run the same search repeatedly, and are much more familiar with your options. I work on 3–4 leases a week, and typically they are in similar price ranges. This means I know every building in Austin like the back of my hand, which translates to saving you tons of time when running your search. Chances are whatever you’re specifically looking for, I already know the best fit for your needs.

APARTMENTS:

When renting an apartment, there are key questions to ask. Its important to understand that because apartments are run by large companies, their units are typically priced using a computer algorithm. Instead of trying to haggle on price with a complex, which typically doesn’t get you anywhere, ask what specials they are running. Complexes will often offer incentives to get you to sign. These include 1 month free rent, look and leases specials, or promotional gift cards.

Look & Lease Specials are what apartments do to help get you to sign. They give you 24–48 hours after you tour their property to apply for a unit, and will wave fees like app and admin.

Without knowing which questions to ask, you could lose out on $100-$200 a month.

My other favorite questions to ask is: “What is the lowest price unit that you have available for my timeframe that meets my criteria?” By starting with this question, you keep them from trying to get you to rent their most expensive units.

CONDOS / HOMES:

It is much more necessary to use a realtor for this search. In Austin, realtors have access to the MLS, which has all legitimate listing currently on the market. Using craigslist is a sure way to end up in a weird situation. I’m not saying it never works, but craigslist is best for short term subleases. If you are looking for a nice place, with a good landlord, I would stick to listing using the MLS.

Once set up on a proper MLS search, narrow down your options based on your criteria (Price, TimeFrame, Location, Quality).

Then, begin visiting your final options. At this point, have your realtor negotiate price. On average, I typically get my clients $100 off of the asked rental rate. I use comps in the area to justify my negotiations. And since I do more leases than most agents, I typically win these negotiations.

By offering a longer lease term, you can also get reduced rental rates sometimes.

In conclusion, there are too many ways to save money when leasing. Knowledge is power, and knowledge is FREE. Even saving $100 a month translates to a round trip ticket to Europe. Don’t be lazy, let a professional help you out.

BONUS TIP: The Golden Rule to saving money on rent in Austin also happens to be the easiest way. GET A ROOMMATE!!

Step 1- Find an awesome agent Kyler Ferris — Pure Gold Realty.

Step 2- Get pre-qualified with a lender to see what amount you qualify for, this way we have the green light to begin looking at homes.

Step 3- Set up property search.

Step 4- Go view properties.

Step 5- Make an offer on a property.

Step 6- Once offer is accepted, you enter the option period. (typically a 5–10 day period in which you get the home inspected and further negotiate terms. If you need to back out during this time, you only lose your $100 option money + the cost of the inspection.)

Step 7- Have home inspected.

Step 8- Negotiate based on inspection report.

Step 9- Exit option period.

Step 10- Wait for appraisal to ensure the home is worth what you are paying for it.

Step 11- Get final approval from lender to close.

Step 12- Go to closing, and get lavished with gifts by me.

Step 13- Throw a house warming party.