With more than one-third of Americans renting their residences, and with some spending half of their salaries on rent, finding ways to save money in this area is a hot topic. Depending on your location, rent for a two-bedroom apartment can be as low as $750 per month or as high as $2,000+ per month.
If you are renting an apartment, we look at five ways you can save money on rent:
#1. Negotiate
If you’re renting an apartment or renting from a large property management firm, negotiation can be tough. If, however, you’re renting from a private landlord, negotiating can be a successful tactic in lowering the price.
You can ask for the pet deposit to be waived (assuming you have a pet), ask for half off the first month’s rent, or ask for $200 off the rental price if you pay by the 25th of the month instead of the 1st.
Landlord Note: Learn how to hold your real estate in your retirement account.
#2. Take on Some of the Maintenance
When renting, things in the home are just as likely to break or need replacing as if you were to own your home. The difference is these responsibilities lie with the homeowner, not with the renter.
Are you able to maintain the home yourself and pay for basic upkeep, such as changing the light bulbs, changing the AC filter, or replacing a broken screen? If so, consider asking for a discount on rent in return for you maintaining the home.
#3. Sign a Longer—or Shorter—Lease
Be willing to be flexible on your lease terms to save some money. Apartments typically offer discounts for longer leases and private landlords might prefer a shorter or a longer lease. Ask them to see what would be in their best interest. A private landlord might be willing to offer you $150 off of your rent if you signed an 18-month lease, for example.
#4. Don’t Be Picky About Location
When you buy a home, location is everything and people are willing to spend more money to be closer to their job, their children’s school, or entertainment in the city. Unless you plan on renting for five years or more, consider sacrificing location now so you can save more money to purchase a house in your desired location.
Living “in the city” can cost significantly more than living in the suburbs. The extra money you save on rent can be used to put toward a down payment on a house.
Note: Before signing a lease in the suburbs, make sure to factor in the cost of gas (and your time) when commuting to and from work. The savings may not be worth it if your commute triples in length.
#5. Get a Roommate
Depending on your situation, you might be able to get a roommate and split the cost of rent, utilities, and even food. The ideal candidates for living with a roommate are single and kid-free, but there’s absolutely nothing wrong with having a roommate with kids, either.
Just make sure you’re willing to put up with noise and potential lack of privacy. Remember, renting is short-term and if you can save money now, it could pay off down the line.
Bonus Tip: Buy Used Furniture
Another easy way to save money when you’re renting is by purchasing used furniture and keeping your home décor simple. The layout of the home you’re renting will probably be different than when you purchase a home, so keep the your décor simple and cheap for an additional way to save money.
