How to Save Money on Rent

If rent is taking up too much of your budget, you have several ways to spend less. You can negotiate your rent, choose a cheaper apartment, share costs with a roommate, cut extra fees, or lower your utility bills.

The cheapest apartment isn’t always the cheapest place to live, so look at your total housing costs, not just the rent.

Choose a cheaper apartment you can still live with

One of the simplest ways to save on rent is to choose a home that costs less. That could mean:

• Choosing a smaller apartment
• Living in a less expensive neighborhood
• Renting an older property
• Giving up amenities you don’t use
• Choosing a place with less space

The key is finding a place that’s affordable and still tolerable for you. Saving $200 a month may not be worth it if the apartment creates safety concerns, makes daily life uncomfortable, or adds expensive transportation costs.

Living in a cheap apartment to save money can work when you’re comfortable with the trade-offs.

Compare rental prices before renewing your lease

Before renewing, check what similar apartments are currently renting for in the same area.

Compare:

• Monthly rent
• Apartment size
• Utilities
• Parking
• Amenities
• Deposits
• Other recurring fees

Two apartments with a $100 difference in rent can end up costing about the same once everything is included.

If your landlord offers a higher renewal price, knowing what comparable homes cost gives you useful information for discussing the new rate.

Try negotiating your rent

It’s worth asking whether your rent is flexible, particularly when your lease is up for renewal.

You could ask about:

• A lower monthly rate
• A longer lease in exchange for a better price
• Removing an unused parking space
• Removing paid amenities you don’t use
• Available rental incentives

There’s no guarantee the landlord will agree, but asking gives you a chance to discuss the price before signing another lease.

Consider moving during a lower-demand period

Rental prices and availability can change throughout the year depending on the local market.

If you’re flexible about when you move, compare rental prices across different periods. You may also find landlords offering incentives when they want to fill a vacant property.

These could include:

• Reduced rent for a certain period
• Waived fees
• Free or discounted services
• Other rental concessions

Compare the full lease cost before signing. A discounted first month doesn’t necessarily make the apartment cheaper over the entire lease.

Get a roommate

Sharing a home can reduce the amount each person pays toward rent and utilities.

For example, a two-bedroom apartment costing $1,600 per month would mean $800 in rent per person if two people split it equally.

Before moving someone in, check your lease and agree on:

• How rent will be divided
• How utilities will be split
• Who pays for shared household items
• Cleaning responsibilities
• Privacy and shared spaces

For the financial side of sharing a home, tips for splitting bills with roommates can also be useful when working out how much each person should pay.

Rent a room instead of an entire apartment

If you don’t need an entire apartment, renting a room can reduce your housing costs.

You may have a private bedroom while sharing areas such as the kitchen, bathroom, or living room.

Before agreeing to the arrangement, check:

• What’s included in the rent
• Who pays the utilities
• How long you can stay
• Whether there’s a written agreement
• What happens if either person wants to leave

A room can cost less than an entire apartment, but the arrangement needs to work for your lifestyle as well as your budget.

Cut extra rental fees and add-ons

Rent isn’t always the full cost of housing.

Look at charges for:

• Parking
• Storage
• Internet
• Utilities
• Pet fees
• Amenities
• Insurance
• Other recurring services

For example, giving up a $100 monthly parking space you don’t use would save $1,200 per year.

When comparing apartments, also check whether certain costs are already included. A slightly more expensive apartment may cost less overall if parking or utilities are included.

Lower your utility bills

Utility bills can add a noticeable amount to your monthly housing costs, especially when you’re paying for electricity, heating, cooling, or water separately from your rent.

A few areas worth checking include:

• Turning off lights and appliances when they’re not needed
• Using heating and cooling more efficiently
• Checking whether your appliances use a lot of electricity
• Reviewing your internet or utility plans
• Using less hot water where practical
• Checking whether your provider offers different billing options

For more ideas, you can also look at these guides on reducing electricity bills, saving on energy bills during winter, and cutting your AC bill. If your utility costs vary a lot from month to month, budget billing is another option worth understanding.

As a renter, check your lease before making changes to appliances, fixtures, or the property itself.

Look for apartments with utilities included

A higher advertised rent doesn’t automatically mean a higher monthly housing cost.

For example:

In this example, the apartment with the higher rent costs less overall.

Before comparing properties, check:

• Which utilities are included
• Whether there are usage limits
• Whether certain services have separate charges
• Whether the included costs can change later

Consider work-for-rent arrangements

Certain rental arrangements allow tenants to exchange work for reduced rent. This might involve:

• Cleaning
• Gardening
• Maintenance
• Property care
• Other agreed responsibilities

House sitting and live-in caretaker roles can also include housing as part of the arrangement.

These opportunities vary widely, so make sure the responsibilities, hours, housing terms, and payment are clear before agreeing.

Your time still has value even when part of your compensation comes in the form of housing.

Look at the total cost of living in a place

A cheaper apartment isn’t necessarily cheaper to live in.

Imagine:

Apartment A

• Rent: $800
• Transportation: $200
• Total: $1,000

Apartment B

• Rent: $950
• Transportation: $50
• Total: $1,000

The cheaper rent doesn’t create a lower overall cost in this example.

When comparing homes, look at:

• Rent
• Transportation
• Parking
• Utilities
• Internet
• Insurance
• Other regular housing costs

This gives you a better picture of what the home will actually cost each month.

Reduce other household expenses when rent can’t change

Sometimes the rent simply won’t budge. If your landlord won’t negotiate and moving isn’t practical, look at the other expenses in your household budget.

You could review:

• Subscriptions
• Groceries
• Insurance
• Transportation
• Phone plans
• Internet
• Eating out
• Other recurring bills

You can also look at how to reduce household expenses when reviewing the rest of your monthly budget.

You don’t need to cut every enjoyable expense. A few larger recurring bills can have more impact than trying to save a dollar here and there.

13. Save the difference when your rent goes down

If you manage to reduce your rent, consider keeping the difference separate from your regular spending.

For example:

Old rent: $1,200
New rent: $1,000
Monthly difference: $200
Yearly difference: $2,400

That extra money could go toward:

• An emergency fund
• Future moving costs
• A house deposit
• Other savings goals

If you’re saving for a deposit while renting, keeping the difference separate can make it easier to track your progress.

14. Think about moving costs before chasing cheaper rent

Moving to a cheaper apartment comes with its own expenses.

You may have:

• A security deposit
• Application fees
• Moving costs
• Cleaning costs
• Utility connection fees
• Overlapping rent

For example, saving $150 per month sounds good, but if moving costs $1,500, it would take 10 months of lower rent to recover that amount.

Before moving, compare:

Monthly rent savings × expected months in the new home

with

Total cost of moving

A move that saves $150 per month looks very different if you’re staying for three years compared with staying for six months.

If you’re preparing to move out, how much to save before moving out can also help you think about the upfront costs beyond your monthly rent.

What if you can’t lower your rent?

If your landlord won’t negotiate, cheaper apartments aren’t available, and a roommate isn’t practical, you can still look at the rest of your housing costs.

Start with expenses you have some control over:

• Utilities
• Internet
• Transportation
• Parking
• Subscriptions
• Other recurring bills

You can also prepare for your next lease by researching cheaper areas and setting aside money for future moving costs.

Sometimes the change that saves you money happens when your current lease ends rather than during it.

How much should you spend on rent?

There isn’t one rent amount that works for everyone. Income, debt, transportation, family size, location, and other expenses can make the same rent comfortable for one person and difficult for another.

Instead of looking at rent alone, calculate your total monthly housing cost.

For example:

Home A has lower rent, but the total monthly cost is only $50 lower.

Your own budget is more useful than choosing a rent amount based on a single percentage of your income.

Saving money while renting and preparing for a house

Renting doesn’t have to stop you from working toward other financial goals.

If you’re saving for a house, lowering your housing costs can create more room for your deposit savings. A cheaper apartment, roommate, lower utility bills, or reduced rental fees can change how much you have available each month.

For example, saving $200 per month after reducing your housing costs gives you $2,400 over a year.

If you’re saving for a house while renting, your housing decision and savings goal can be looked at together as part of the same budget.

Find the rent-saving option that fits your life

There isn’t one perfect way to save on rent.

You might:

• Choose a smaller apartment
• Share your home with a roommate
• Negotiate your lease
• Move to a cheaper area
• Reduce utility costs
• Remove fees you don’t need
• Choose a home closer to work
• Rent a room instead of an entire apartment

Another renter may decide that paying a little more for a shorter commute or a better location is worth it.

The important part is knowing what you’re actually paying for. Rent is only one part of housing costs, and the cheapest listing isn’t always the cheapest place to live.