Easy Ways to Cut Rental Costs

Rent is likely your highest monthly expense. It’s also a recurring cost that you can’t easily reduce once you’ve signed your lease.

If rent takes up too much of your paycheck, it can have short- and long-term effects on your overall financial picture. Here are a few ways to keep costs down.

Key Takeaways

• Once a lease is signed, it’s very unlikely that you’ll be able to lower the rent.
• However, there are ways to save on rent before signing a lease.
• Selecting less desirable neighborhoods, getting a roommate or two, accepting lower quality amenities, and properly budgeting your living expenses are good strategies to save on rent.

1. Choose an Affordable Location

If you decide to live in a highly desirable area, you may have to pay more for that privilege. On top of that, some densely populated neighborhoods will require an additional monthly fee for a parking space. Others will require a neighborhood association fee.

If you choose to live just a few miles away from those popular neighborhoods, though, you’ll pay substantially less each month.

Besides, when you live within easy walking distance of shops, restaurants, and bars, it’s much easier to make impulse purchases or overspend on entertainment. Living further away may force you to give a little more thought to your shopping trips and help control your spending.

Keep in mind that there is a balance to be struck. Higher-paying jobs are often in the same areas that are the most desirable to live in. If you work in one of these areas, don’t relocate too far away, or the savings in rent may get eaten up by increased transportation costs.

2. Be Flexible

Instead of looking for an apartment with granite countertops and stainless steel appliances, your definition of “nice” could be amended to simply mean a place that is free of major maintenance problems, insect infestations, safety issues, and bad neighbors.

You’re unlikely to find a shiny new dream apartment for a bargain-basement price. However, you might be able to find a solid place if you can overlook some things that will have minimal impact on your overall quality of life. Shabby carpets can be covered with area rugs, for example. And an ugly building exterior simply doesn’t matter.

3. Find a Roommate (or Three)

Getting a roommate could cut your rent in half. If you have two or three roommates, you could save even more.

If you’re able to sacrifice some privacy and peace and quiet, having roommates can allow you to spend less, get a nicer place, or live in a nicer location. Who knows—you might even make new friends.

4. Be a Smart Shopper

Although it can require a significant investment of time, patience, and flexibility, finding an apartment at below the market rate is not impossible. In addition to perseverance, you’ll need some familiarity with the real estate market. Do your research in advance, so you’ll know what constitutes a high, low, and average rent in your target neighborhood. You’ll also have to stay on top of the listings so you’ll be able to view places as soon as they go on the market. Apartments that are a good value get snapped up fast.

Know what you’re looking for in advance, which puts you in a position to take decisive action if you find the right place. Make a list of the key qualities your apartment must have, must not have and would be nice to have.

Cats and Dogs

If you have a pet, it’s customary to pay an additional pet deposit or even a small monthly “pet rent.”

5. Get the Details

If your rental application is approved, don’t impulsively sign the lease. First, ask your potential landlord lots of questions about the unit before you contractually obligate yourself to a year’s worth of rent. Ask if the unit and building have had any insect or rodent problems or other significant issues, plus any noise issues. Perhaps your neighbor-to-be has a baby, or there is an airport nearby that you aren’t aware of.

Also, be wary of large security deposits. Local laws will dictate legal limits for deposits. In most areas, it’s possible to move in with just the first month’s rent and a deposit equivalent to one month’s rent. Some landlords will ask for the first month’s rent, last month’s rent, and a deposit.

6. Know the Potential Costs of Any Outcome

Be aware of the rules for breaking your lease before you sign it. If you end up hating the apartment or the neighborhood, what are your options for leaving? What if you have to relocate for a promotion or job change? Make sure the penalties for leaving and the rules for subleasing are clearly stated in your lease. Don’t take the landlord’s word on anything.

The lease should also outline any fees for late rent payments or the repair of problems caused by you (such as unclogging a drain or letting you in if you lock yourself out). Also, ask about the typical rate and amount of rent increases. Some areas have rent control or reasonable landlords who stick with cost-of-living adjustments (COLA).

Which Cities Has the Most Affordable Rent?

The five most affordable cities for rent as of 2024 were: Wichita, Kansas (with a median rent of $680); Shreveport, Louisiana (with a median rent of $750); Akron, Ohio (with a median rent of $760); Lincoln, Nebraska (with a median rent of $800); and El Paso, Texas (with a median rent of $830), according to data collected by Earnest.

How Much Rent Can I Afford?

For most people, the amount of rent shouldn’t be more than 30% of your monthly income. However, in some areas of the country, it may be difficult to find an apartment for that amount of money.

Is Paying More for a Nice Apartment Worth It?

The old adage goes, “you get what you pay for,” but sometimes, that isn’t necessarily true. An upscale apartment with amenities may be desirable—but is it truly what you need? Maybe it’s better to try to find a clean, safe apartment in a neighborhood you like.

How Can I Save on Rent?

One way to save on your rent is by getting a roommate or two to help to split the bills. If you want to live alone, you should shop around for affordable properties, and be flexible on your definition of what constitutes a “good” or “nice” apartment.

How Much Money Do I Need to Rent an Apartment?

Some landlords ask for a security deposit and one month’s rent, but there are building owners who ask for as much as two month’s rent (first and last) plus a security deposit. Always ask in advance before signing a lease.

The Bottom Line

If you’re willing to make compromises and invest the time it takes to read lots of ads and look at numerous places, you’re more likely to find the perfect apartment for you at the perfect price. The extra time and effort will be worth it. Otherwise, you might end up regretting where you end up, next to rambunctious neighbors in a shoddy unit that’s always in need of repairs, with a hefty rent check that forces you to sacrifice other goals, like paying off debt, taking a vacation, or saving for a down payment on a house.