Buying a house has generally been more expensive than renting, but that may not be the case anymore with skyrocketing rent prices. The good news is rent prices are increasing at a slower rate, which is a positive sign for renters. However, that doesn’t lessen the burden of covering a costly rent bill each month.
For that reason, we outline the different ways to save on rent when entering a new lease agreement or already in one.
How to Save Money on Rent in 2024
Rent can be one of the most expensive monthly bills you’ll be expected to pay. To reduce the financial impact each month, here are eight ways to save on rent.
1. Reduce Add-On Monthly Fees
If you’re already locked into a lease agreement, you can consider removing add-on fees from your monthly rental bill to save some money. This option is ideal if you have to wait until it’s time to negotiate a new rent price or move to a more affordable apartment.
Examples of these fees include parking or storage unit fees that range from $50 to $150 per month. If you no longer own a vehicle or have access to public parking, see if your landlord is willing to remove this fee for the duration of the lease. For the storage unit, consider selling the belongings if they’re no longer in use or necessary to have.
2. Pay Rent With a Checking Account
Rent collection platforms allow you to pay rent with a debit or credit card, but there’s a catch — they typically charge a processing fee that can quickly add up. For example, paying rent of $1,350 with a credit card that includes a 3.5% processing fee can add $47.25/per payment, totaling $567 annually.
However, some platforms waive processing fees when renters pay rent with a checking account. Knowing this, check to see what payment methods waive processing fees (if any) the next time you pay rent. That way, you have a general idea of what method to try using more (if able) to save on rent.
3. Research Online Sweepstakes for Renters
It’s no secret that rent prices are higher than they were several years ago. As a response, there are more opportunities to receive free rent through online sweepstakes and games, specifically for renters.
In fact, Realtor.com® recently launched the Great Rental Search Party — an online game of skill where one person can win daily prizes (selected at random) like a paid Netflix subscription ($120 value) or one month’s rent (up to $3,000 in cash value) anywhere in the US. Although the Great Rental Search Party has now ended, you can still visit Realtor.com® to help you find your next home.
4. Search for Apartments During the Winter
Rent prices are generally lower during winter due to the lower rental demand. If you’re flexible on your move-in date, try searching for apartments in December, January, or February to pay less rent than you would moving during the summertime.
5. Sign an Extended Lease
In most cases, landlords and property managers offer 12-month leases with the option to renew. However, you can commit to a longer-term lease like 15 months for a lower rent price. The longer the lease term, the more stability this offers the rental owner so they’re more open to reducing the rent price by a few hundred dollars.
This is a great option if you’re confident the rental property meets your needs and can provide a positive renting experience.
6. Get a Roommate
Having a roommate has its pros and cons, but it’s one way to save on rent by not having to cover the full amount. The key to a successful agreement is ensuring the roommate can afford the rent, has a positive renting history, and communicates issues in advance.
Before finding a roommate, check in with your landlord so they’re aware of your plans. The roommate may also need to complete a screening process before moving in, so it’s best to inform the landlord at each step. This is especially important considering you’ll still be responsible for the full amount of rent in the case the roommate can’t pay.
7. Rent Out an Extra Room for Short-Term Stays
An alternative to finding a roommate is rental arbitrage. This is when renters can temporarily rent out an extra room as a vacation rental on platforms like Airbnb or for short periods of time (generally less than three months).
However, this option requires careful consideration since there can be laws on short-term rentals, as well as limitations outlined in the lease. Firstly, review your lease agreement and talk to your landlord before pursuing rental arbitrage. If allowed, this can be a great way to generate additional income each month that can go towards your rent.
8. Move to a Different Neighborhood
Not all neighborhoods have the same rent prices for certain types of rentals. Some neighborhoods can be more affordable than others. With that in mind, research different neighborhoods that offer your ideal apartment, but at a lower price than your current location.
Food for thought: Neighborhoods closer to downtown cities tend to cost more than suburban neighborhoods.
Find Available Rentals With Ease
With rent prices continuously rising, putting more income towards one bill can be stressful. With these tips, you can find ways to save on rent and have a positive renting experience without the hefty price tag.
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