10 Ways to Save Money on Rent Payments

If you’ve been in the market for an apartment or rental home, you know how deep you have to dig into your pockets to find a place you can afford.

On average, rent has increased each year by 3.18% since 2012. Apartments that were $1,300 are up to $1,800. As prices continue to rise, renters must spend more and more of their income on rent, which makes it harder to save up for major expenses like purchasing a home or paying off debt.

If you’re struggling to pay for rent you may feel inclined to cut down on expenses and save your income for essential purchases. While this is a solid first step in the right direction, below we will review some tools and tips that can help pay for or reduce monthly rent payments.

Why Is Rent So Expensive?

The soaring cost of owning a home, plus a shortage of affordable rental properties has made leasing a residence a real strain for U.S. consumers.

The National Association of Realtors has an index that measures mortgage affordability, and their index says a family with a median income can’t afford a median-price home in 2023.

It doesn’t help that interest rates have soared from 2.9% in 2021 to 7.7% in late 2023, making it even more difficult for people to afford a home. In just one year, the average monthly mortgage payment went from $1,770 a month to $2,234.

This is similar to what happened in 2008 when the housing market crashed and homeowners underwater on their mortgages had to abandon their houses and find a place to rent.

The rental market wasn’t ready for them, and rents started soaring because there were not enough properties available. That challenge is now being faced by individuals and families who can’t afford the down payment or monthly mortgage in the current housing market.

There are some choices that can ease the strain, some agreeable, and some may not be so palatable, depending on your situation.

How to Save on Rent

There are several ways to save money on rent, but the best way will depend on your unique financial goals. Here are 10 tips to help get you started.

1. Get a Roommate

This one is obvious, and it will save by far the most money. The average cost of a one-bedroom apartment in the U.S. in 2023 is $1,505. The average cost of a two-bedroom apartment is $1,862, or $931 per individual. That is $574 a month in savings or $6,888 over the course of a year. And that doesn’t include shared savings on expenses like utilities, kitchen supplies, toiletries, and groceries.

2. Rent out an Extra Room for Short Term Rentals

Like living with a roommate, renting out an extra bedroom in your home or apartment can save you money on monthly rent. Try posting on sites like Airbnb and VRBO that let users advertise open rooms for short-term rentals, with stays typically lasting a few days or weeks. Make sure to discuss this arrangement with your landlord as some leases may not allow tenants to rent out the property.

3. Consider Private Rentals Instead of Corporations

A private rental is a property owned by an individual or family as opposed to a corporation, as is the case with most large apartment complexes. A private rental could be a house, apartment, or even a guest house separate from the main property.

Private landlords may be laxer when it comes to application fees or deposits. They don’t have strict corporate guidelines to adhere to. This means they may be more willing to negotiate rent amounts or overlook past evictions that could bar you from renting elsewhere.

However, every landlord will be different. Some may go as far as to complete background checks out of pocket. Be upfront about your situation and expectations to avoid any inconvenient surprises down the line.

4. Negotiate When You Renew a Lease

Landlords want to keep good tenants. It costs them money to move you out and bring someone else in. That means you have some leverage.

Research similar apartments in your area and come in with a number in mind. If the landlord won’t budge, tell them you’re going to look elsewhere. If you’ve been a good tenant, they’ll want to keep you.

Word of caution: Know who you are dealing with. Independent landlords have a lot more wiggle room than property management companies. Maybe they have multiple renters in the complex and aren’t willing to make concessions, so try to sweeten the deal by offering something in return. Each time something breaks down, your landlord has to pay someone to fix it, so they may be willing to work with you instead if it saves them time or money. Consider offering to do some work around the property in exchange for lower rent payments.

5. Sign an Extended Lease

What a landlord wants is stability. You can give it to them by signing for a year-and-a-half or two years instead of six months or a year. The longer the lease, the lower the landlord should be willing to go.

6. Give Up Your Parking Space

If you don’t have a car, you don’t need a parking space. Offer to give it up in exchange for discounted rent. The landlord would be able to sell the space to another tenant, who might need extra parking.

7. Referral Fees

Ask your landlord if they offer tenant referral fees. Some landlords will offer you money in exchange for referring a new tenant. This is more likely to work with the larger apartment companies since they would need to have an excess of vacancies before offering you money to help fill them. A private lender with one or two properties probably won’t offer you much or anything for a referral, but it never hurts to ask.

8. Consider a New Location

This can be one of the most cost-effective ways to save money on rent. Big cities like New York and Los Angeles are attractive and expensive. The average one-bedroom in New York was $4,742 in 2023, while in Los Angeles it was $2,742. If you need an urban vibe, but can’t afford those prices, consider cities like Houston or Las Vegas where you could get a 2-bedroom for $1,550, or maybe Columbus, where it’s just $1,350. This can be a great solution for remote workers who have the flexibility to work in a different state or city from their employer.

9. Look for Apartments in the Winter

Landlords have a tough time finding renters in winter. It’s cold outside in most of the country and people don’t like to leave their cozy homes. Vacancies can go on for months, and landlords lose money with each month they’re not collecting rent.

Rents increase in the summer. Some of that has to do with the weather, and a lot of it has to do with the school schedule. College graduates flood the market during this time of year, and high school graduates enter the market in college towns. Families with children in elementary school will wait until the school year is over to make a move to ease their children’s transition to a new school.

All that makes for an increase in demand, which means higher prices. Look for apartments in the winter and offer to sign an extended lease that ends in the summer. That ensures the apartment hits the market at a good time for the landlord when you move out, and the landlord gets some stability in the meantime. They’ll be willing to work with you for those tradeoffs.

10. Pay Upfront

Offer to pay for the entire lease or at least a few months upfront for a discount if you can afford it. The landlord may cut a deal to have cash in hand, but it’s only an option if you have enough savings to cover and then some. You don’t want to rack up credit card debt because you emptied your bank account to save a few dollars on rent. The savings would be lost to credit card interest. And if you do pay upfront, make sure you pay the money back into your savings each month.

How to Save Money While Renting

If you’re having trouble securing a low rent, or obligations keep you living in an expensive city, consider some of these cost-effective strategies to trim down on your monthly expenses and save money.

1. Saving on Utilities

Americans spend an average of $429 a month ($5,151.96 a year) on basic utilities like electricity, water, natural gas, sewer, recycling, and internet. About half of that cost goes to heating and cooling, where adjusting the thermostat to proper levels (78 degrees in summer, 68 in winter) can save a boatload of money. Energy also is wasted by inefficient appliances, drafty windows, and doors that make it harder to maintain a comfortable temperature. Wasted energy equals wasted money. You can save money on utilities by upgrading old appliances or making some repairs around the house. However, you should talk to your landlord before making any major changes.

2. Researching and Switching to Cheaper Providers

If you have cable, consider switching providers or downgrading your package. Cable options may be limited where you live, and the most affordable option may not be available there. It’s still worth negotiating with your provider for a lower rate. If you threaten to switch providers or ditch the service, they may be more open to negotiations. While you’re at it, look into switching up other services like internet, security systems, and renter’s insurance. Do not settle for the initial offer or assume you’re already on the most cost-efficient plan. Take some time to research different providers and determine which services you should update to save more money.

3. Cutting Cable Completely

More Americans are cutting the cord. According to Samba TV, 52% of Americans no longer pay for cable TV. They’re doing it because it’s cheaper to stream the content you want. Consider switching to one of the major streaming services. Most of these cost between $10-$20 a month for a basic package. Several streaming services offer bundle deals that let you access multiple platforms at a discounted rate. For example, Disney, Hulu, and Max offer a bundle deal that lets you stream each platform at a reduced rate compared to signing up for each individually.

4. Cooking at Home

You don’t have to cook three meals a day every day, but eating out constantly will drain your funds, forcing you to tighten your budget elsewhere. Most people won’t go broke from eating out once a week, but if you try to eat out every meal, you will end up spending more on food than rent. Consider learning a few easy recipes that you can knock out after work when you’re tired and most tempted to call it in and order takeout. The grocery store is full of tasty and affordable options that may surprise you, and shoppers can go a step further with their budgeting by following a meal prep routine, which can also save time and energy spent on cooking.

5. Don’t Use Credit Cards for Rent

You may hear it’s a good idea to pay rent with a credit card so you can cash in on mileage rewards or cash back from credit card companies. It’s not. Property managers typically hit you with a service charge that will exceed any benefit, and you’re also risking overloading your credit card.

If you don’t pay your balance monthly, it will hurt your credit score. And the last thing you want to do, while trying to save money, is to add credit card debt.

You don’t have to follow every one of these tips to save a good chunk on rent. Analyze your situation and decide what makes the most sense for you. Some of the tips are big changes, like moving halfway across the country to save on housing costs. Something like that may not be possible. But others involve a lot less effort. Assess your options and find what works for you, and you may find it a lot easier to scrape up the rent money every month.

If this all seems overwhelming, put a call into a nonprofit credit counseling agency and ask them for a free budget review. Putting your income and expenses down on paper should make it easier to trim spending and afford where you live.

More Ways to Save Money

• How to Stop an Eviction
• What to Do When You Can’t Afford Rent
• How to Find Out How Much Debt You Have
• How To Save Money on Food at Restaurants and the Grocery Store
• Budgeting for Couples: Tips to Budget as a Team