How To Save Money On Rent

How To Save Money On Rent: 13 straightforward ways to lower the cost of renting an apartment, condo, house, or primary residence. 

Renting instead of buying is often viewed as a waste of money.

However, if you know how to save money on rent, renting might actually be a smarter decision.

Renting can make expenses more predictable and help you avoid lawyer fees, interest on a mortgage, property taxes, and utility costs.

In addition, you don’t have to use your life savings on a down payment if you rent.

If you are a disciplined saver and investor that finds a way to rent for cheap, it can also help you become financially independent faster. 

In this post, I will show you how to save money on rent based on my own experience renting in Toronto, Canada.

Let’s dive right in.

How To Save Money On Rent

How To Save Money On Rent

1. Rent Close To Work 

One way to save money on rent is to find a place that is closer to your work or school.

If you can move within walking distance, you can put your transportation costs into the rent costs and afford a better place.

Instead of having a car and insurance payment, you can put that money towards the cost of rent and walk to work or school.

Let’s say your car payment and insurance cost $500 per month. In this scenario, you could opt to get rid of your car and insurance payment and find a place closer to your work. Even if you have to spend $400 more on rent, you could still save $100 per month.

Alternatively, if you take transit, you can move close enough to eliminate the cost of transit.

Before I worked from home, I spent roughly $120 per month on transit. But now that I don’t have to leave the house, I keep all that money in my pocket.

2. Rent Close To Transit

If you are unable to rent within walking distance, you could rent close to transit to avoid the cost of a car and insurance. 

At the very least, you can probably save a few hundred per month on the insurance.

Additionally, your expenses will be more predictable because you won’t have to worry about oil changes or car maintenance.

3. Negotiate With Your Landlord

Signing a twelve-month lease is a big commitment.

Usually, you have to pay first and last months’ rent upfront. 

Before you commit to such a large expense, you could try to negotiate with your landlord.

It’s possible they could say no. But you never know if there’s any wiggle room if you don’t try.

You never know what kind of situation your landlord is in either.

Maybe they are worried and haven’t received any other offers.

If that’s the case, you might be able to shave a few dollars per month off the cost of rent.

Even if it’s $25 to $50 per month, that will add up over the long term.

4. Stay In The Same Place For A Long Time

If you find a good, affordable rental unit, you could stay in the same place for as long as possible to save money.

Typically, landlords are only permitted to increase rent by a fixed amount each year. 

In Toronto, it’s usually around 2% annually. But as soon as a tenant moves out, the landlord can set whatever price they want.

To give you an example, my second apartment in Toronto was $1,300 per month in 2014. By 2019, the same apartment would have easily cost $1,800 per month. However, I was still paying under $1,400 per month just because I never moved.

5. Do Your Research

You absolutely must do your research in order to save money on rent.

I mean, you can’t just accept the first place you look at.

You have to study the market and look at different options and areas within a city.

After you visit a few places and do your research, it will become clear where to find the best value.

6. Be Open To A Basement Apartment

If you are open to a basement apartment, you can save a lot of money on rent.

Of course, you have to sacrifice privacy and natural sunlight.

But you will likely save hundreds per month.

Sacrifices are an excellent way to save money when you are looking to rent your first place. 

7. Make Sure Utilities Are Included

Utilities can be expensive and they add unpredictability to your budget.

So, let homeowners deal with them and make sure they are included. 

Out of the five places I’ve lived in the Toronto area, the cheapest one included utilities. 

8. Rent With A Roommate

If you are willing to live with a roommate or multiple people, you can save a lot of money.

I think this option is more suitable for students and younger people, though.

At this stage of my life, I value my privacy so I would only consider this option as a last resort.

But during school, in London, Ontario, I was able to keep my rent as low as $375 to $450 per month by living with roommates.

9. Look For Places In a Renter’s Market

Rent prices dropped like crazy in Toronto because of the pandemic. 

Since people required a larger space to work from home, many people moved out of the city.

Rent prices fell to the lowest they’ve been in years as a result. 

For landlords, this was a nightmare. For renters, it become a renter’s market. It was the perfect time to move, so I took advantage of it.

Obviously, situations like this are rare. But there are still lower rent opportunities every year if you are willing to rent in the winter. 

10. Build A Great Relationship With Your Landlord 

If you have a place you like and a great landlord, you should work on building a great relationship with them.

Some landlords enjoy the idea of helping tenants and providing affordable housing.

Even if they are just breaking even on the mortgage, they still own an asset that is increasing in value.

Furthermore, some landlords don’t want to deal with the hassle of finding new tenants. They just want an income stream that pays down their mortgage.

As such, they may be willing keep rent at the same price you originally agreed upon.

All you have to do is get along with them, respect their place, and build a good relationship.

11. Utilize The Bunz Housing Zone

If you are willing to do your research, decent rental prices do exist. 

You just have to know where to look.

One option to consider is the Bunz Housing Zone. You can visit the website or apply to join the Facebook group.

But once you gain access to it, you will find surprisingly affordable options posted all the time.

12. Move In With Your Significant Other

I recently wrote about how the key to financial independence might be a good relationship.

In short, moving in with your significant other allows you to split your expenses.

Of course, this is only a good option if your relationship is ready for it.

Because if you move in and your relationship is not ready, it could end up being a disaster. 

In fact, it might end up costing you more money if it doesn’t work out. 

13. Rent Out A Den Or Parking Space In Your Existing Place

If you have a parking space that you don’t use or a large enough den, you could consider renting it out to lower the cost of your rent.

In Toronto, I’ve seen people rent out small dens for $1,000 per month. And a parking spot could easily generate $100 to $200 per month.

If you do go this route, you should discuss it with your landlord to make sure you maintain a good relationship with them.

How To Save Money On Rent – Final Thoughts

Renting doesn’t have to be a complete waste of money.

An argument could be made that owning a house is a waste of money and that it’s smarter to invest in the stock market.

Frankly, if you learn how to save money on rent, the only advantage of buying a home is the leverage a mortgage provides.

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I am not a licensed investment or tax adviser. All opinions are my own. This post may contain advertisements by Monumetric. This post may also contain internal links, affiliate links to BizBudding, Amazon, Bluehost, and Questrade, links to trusted external sites, and links to RTC social media accounts.

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