How To Save Money On Rent (Biggest Expense)

Rent is one of our biggest monthly bills, and looking at the current market it doesn’t look like we are going to be getting a break on rental prices anytime soon.

In fact, if you take a look around, the average price for rent has skyrocketed over the last few years. Studies by Redfin have highlighted that the average price for rent in the US hit a 15% increase for the past 12 months.

Finding a way to save money on rent is huge.

Below we share with you how you can save money on rent. Designed to help you save regardless of where you stay, an apartment, or a house.

Let’s jump right in, shall we?

How To Save Money on Rent

In order to save money on rent, it is important to consider the concept of cost-cutting by implementing a frugal lifestyle.

This can be achieved through a process of budgeting and mindful spending, which involves carefully allocating funds while taking into account the opportunity costs associated with foregone expenditures.

Here are a few ways you can save on your rent.

Haggle with Your Landlord

Believe it or not, the overwhelming majority of landlords there today are not looking to squeeze every single penny out of their renters but are instead real people that recognize just how tough things are getting out there – and are willing to work with their renters (even if it’s just a little bit).

If you are nervous about making rent it’s a good idea to reach out to your landlord and see what you can do to negotiate those prices to tell a little bit in your favor.

Don’t be afraid to look at other apartments in the area, see what they are going for, and generally just get a feel for the economic reality of your local community. All of that might help you get a few hundred dollars knocked off of your monthly payment.

Bring in a Roommate (or Two)

Often the simplest way to get a major price reduction on your rent (but not necessarily the easiest thing in the world to pull off), tracking down a roommate – or two – can halve your rental payment immediately.

Of course, there is a little bit that goes into finding the right roommate, going through the vetting process, making sure that they are a good fit for your living situation, and so on.

You’ll also have to get comfortable with the idea of sharing your private space with someone that’s going to start their relationship with you off as a stranger (unless of course, you can find a friend or family member to split your rent with).

Always Hunt and Price Match New Apartments

Just like with your career you should always be on the hunt for new opportunities that can help you financially.

Even if you have just recently signed a lease it’s a good idea to get a feel for what prices are in your area for apartments comparable to your own, as well as those that are maybe a little less “flashy” – or even a bit more luxurious.

If you don’t know what the rental market in your area is like it’s impossible to negotiate for better rent prices. You just won’t be coming from an educated position or a position of strength.

Get that data, though, and you’ll be able to bring some hard facts to the negotiating table that might help you drop your rent prices considerably. Especially if you’re able to hold even just the idea of you leaving your lease and going somewhere else in these tough economic times as a trump card.

Look for Ways to Barter Your Rent Down

This is a more creative solution for reducing your rent payment but it’s one that millions and millions of landlords all over the country are more than happy to take advantage of, and a situation that helps everyone feel like they are coming away a winner.

Think about the kinds of things you could do for your landlord at your property to lower your overall rent payments.

How much would your landlord knock off if you handled all of the landscaping and snow removal?

How much would your landlord knock off if you planted trees and shrubs, grew a garden and shared your vegetables with them, or made some minor improvements that boosted the value of the property?

If you don’t have any of these hard skills that can add value to the renter/landlord relationship or the property itself maybe you have other skills that you can bring to the table.

Do you know a little bit about graphics or web design? A little bit about online marketing and sales? Do you make something, do you cook, do you have special skills or talents that they might have otherwise been willing to pay for – but are now happy to give you a break on your rent for?

It’s worth asking!

Ask for a Prepay or Cash Discount

The number one thing that landlords are nervous about is the renters that aren’t able to make their monthly payments consistently.

It’s a gamble that these people take every single month, hoping that the rent is going to arrive in full and on time.

If you’re able to eliminate those fears by prepaying even just a little bit of your rent at a time (maybe paying two months at a time, maybe paying three months in advance, or maybe floating the entire year upfront) it’s not at all unreasonable to expect a significant discount.

There are also a lot of landlords out there that will give you a pretty hefty discount if you are able to pay your rent in cash every time.

It’s always worth checking in about.

Extend Your Lease for a Price Decrease

The next big fear that landlords have is that great renters are going to up and leave one day, with very little notice, and the people that they get to replace them are going to be a real nightmare to deal with.

If you have a new lease signing that’s coming up it might be a good idea to talk to your landlord about extending that lease, giving them a bit of extra peace of mind, but asking for some kind of discount in return.

The longer you extend that lease the higher your discount is likely to be.

Don’t ever overextend yourself and sign on the dotted line for a time block that you’re not comfortable with. But if you plan on sticking around for a couple of years and like your place it’s an easy way to get a huge discount!

Sublet Space When Possible

Subletting can be a little fraught with risk and danger, if only because you’re never really sure who you’re bringing in as you act as the “middleman landlord” in a subletting situation.

On top of that, some landlords have the right explicitly in their lease agreements that they aren’t at all cool with people subletting. Breaking that agreement can have pretty disastrous effects on you moving forward.

On the flip side of things, though, if you sublet to someone you know you can trust – and you really do your due diligence, and maybe even ask for a decent-sized chunk of prepay upfront – you might be able to drop the price of your rental significantly.

There are some logistics you are going to have to hammer out on your own if you choose to go this route to be sure. The rental savings, though, can be so significant that they are well worth pursuing.

Put Together a Referral Deal

Maybe the place you’re renting at has a number of empty units that are just sort of sitting there, rental units that are costing the landlord money every day that they go empty.

And maybe you know a couple of people on the hunt for apartments right now, good people with the financial means to securely rent these places for at least 12 months – and the kind of people that aren’t going to cause your landlord any headache or hassle.

Reach out to your landlord and let them know that you might have people that can put cash in their pocket but that you’d like some sort of referral fee kickback coming your way.

You might even be able to negotiate better rent for yourself as well as your friends!

Why Should You Save Money On Rent?

Saving money on rent can be beneficial from both economic and psychological perspectives.

From an economic standpoint, reducing the amount of money spent on rent necessarily has a few benefits:

  • More funds are to be allocated to other financial priorities.
  • The propensity toward frugality is accompanied by increased saving behaviors.

From a psychological perspective, saving money on rent can be beneficial for several reasons:

  • Lead to a greater sense of financial security, as individuals are less likely to feel the pressure of future financial obligations due to their reduced spending.
  • An increased sense of financial security can be linked to better mental and emotional well-being due to the decreased stress associated with worrying about money.

Rent can be one of our largest expenses, so cutting back here can certainly help improve your budget. Saving money on rent can give you more flexibility and freedom in other areas of your life, such as travel or leisure activities.

Closing Thoughts

At the end of the day, finding creative ways to save money on your rent isn’t anywhere near as challenging as a lot of people make it out to be.

Truth be told, if you take advantage of the eight tips and tricks we highlighted above you’re probably going to be able to significantly reduce your monthly rent payment. There’s also no reason you couldn’t stack a couple of the tips and tricks mentioned above together, combining them to get even more substantial discounts than you would have ever imagined possible.

When you get right down to it though, there’s never anything wrong with reaching out to a landlord, talking to them about rental prices, and just trying to see if there’s a way the two of you can come together to bring your prices down and make them a bit more manageable.

Read Also:

Join 900+ BUDDIES who are growing their wealth with our weekly Income Newsletter

Similar Posts

What are your thoughts?