Sure, the landlord is generally the one in charge should a major bug infestation occurs or the dishwasher sputters its last breath; that's one of the perks when you are signing a lease instead of a mortgage. But you still need to have that financial cushion to keep your head above water in any situation.
Here are 4 reasons why renters need and emergency fund, now more than ever according to Trulia:
Your landlord can raise your rent without much notice
In most states, it is not allowed to increase a rent during the term of a lease. However, if you are on a month-to-month basis rental, a rental increase could come with as little as 30 days' notice.
New York and Texas allow rent increases given that both tenant and landlord consent to the change. However, the lease has to be terminated if the tenant doesn't agree with the rent raise. This also means that inaction legally indicates the tenant's approval.
Disaster can strike anyone at a time
It all happens to us - suddenly, the car needs a major repair, a long-forgotten doctor's bill resurfaces, and your dog needs emergency surgery after mistaking something else (that he shouldn't be eating) for a bone.
The sad fact is, these situations don't wait until we're financially prepared; so you have to anticipate for these crises before they even occur. Ideally, you need to have enough emergency funds to get you through at least 3 months of rent if you lose your job - giving you just enough time to find a new one and not having to accept a less-than-stellar job offer to pay for your emergency rent money.
Paying off debt? You still need that emergency fund
Debt payoff shouldn't make you take your mind off having that emergency fund.
Consider this: After you have spent months paying off debts, you unexpectedly lose your job or you could face a mountain of medical bills. In this unfortunate situation, you are left with one and only option: go back to using your credit cards and joining the debt cycle again.
While it's good to be debt free, it is still important to have an emergency fund should you hit any brick wall on your path.
Lessen your money stress
According to a survey conducted by American Psychological Association, 72% of the respondents said that money contributed to their stress in the previous month, while 64% said that money was a somewhat or significant source of stress in their lives.
What makes money management difficult is being faced with circumstances that you are not financially prepared to handle. So if you want to have that peace of mind, build an emergency fund.