Are you looking for a new apartment rental but intimidated by the costs? You're not alone! Rising rent prices and unexpected fees can make it tough to stick to your budget. However, if you know how to shop around, there are plenty of great deals out there. In this blog post, I'm going to walk you through some cost-saving strategies that will help make your dream rental more affordable.
Why Is Rent So Expensive?
Rent prices in the United States have reached high levels due to various factors. In the past two years, the median rent has experienced an 18% increase, primarily driven by a competitive housing market and higher mortgage rates, which have made it challenging for many individuals to afford homeownership. Additionally, a robust job market and a shortage of available housing inventory have further contributed to the surge in rental prices.
How to Save on Rent?
Consider Having a Roommate
This suggestion is quite evident, but it can significantly reduce your expenses. In 2021, the average monthly cost of a one-bedroom apartment in the United States was $1,663, while a two-bedroom apartment averaged at $1,934. By splitting the cost of the latter, you can save $696 per month. Multiply this by 12, and you'll see substantial savings. Moreover, this calculation doesn't even account for shared expenses such as utilities, kitchen supplies, toiletries, and groceries.
Negotiating at Lease Renewal
Landlords value reliable tenants as the cost of finding new occupants and the associated expenses can be burdensome. This gives you some bargaining power.
Before discussing the lease renewal, conduct research on comparable apartments in your locality and determine a specific figure. If the landlord remains unyielding, express your intention to explore other options. If you have been a responsible tenant, they will likely want to retain you.
However, exercise caution and assess the landlord's nature. Independent landlords often have more flexibility compared to property management companies. It's possible that they have multiple tenants in the complex and are reluctant to make concessions. In such cases, consider offering something in return to enhance the negotiation.
Consider Upfront Payment
If you have the financial means, you can propose paying the entire lease amount or a few months' rent upfront in exchange for a discount. This arrangement can entice the landlord to agree since they would receive immediate cash. However, this option is only viable if you have sufficient savings to cover the upfront payment and additional expenses. It's important to avoid accumulating credit card debt by depleting your bank account in an attempt to save on rent. Otherwise, the interest charges on the credit card would nullify any potential savings. If you do opt for upfront payment, ensure that you replenish your savings each month by repaying the amount you used.
Opt for a Lengthy Lease
Landlords often value stability, and you can provide that by considering an extended lease duration. Instead of signing for the typical six months or one year, you can offer to commit to a year-and-a-half or two years. The advantage of a longer lease is that it may encourage the landlord to offer a lower rental rate, as they benefit from a longer period of guaranteed tenancy.
Give Up Your Parking Space
If you do not own a car, you can consider relinquishing your parking space and propose a discounted rent in return. By offering to give up the parking spot, the landlord can potentially lease it to another tenant who requires additional parking. This arrangement benefits both parties, allowing you to save on rent while providing an opportunity for the landlord to generate additional income from the parking space.
Seek Apartments During Winter
Winter can be a favorable time to search for apartments since landlords often face challenges in finding tenants during this season. The cold weather and people's inclination to stay indoors contribute to extended vacancy periods, causing landlords to experience financial losses without rental income.
Rent prices tend to rise during the summer, partly due to weather conditions and largely influenced by the academic calendar. This period sees an influx of college graduates entering the rental market, particularly in college towns. Additionally, families with school-aged children often wait until the end of the school year to relocate, aiming to facilitate a smoother transition for their kids.
Considering these factors, it's beneficial to look for apartments in winter and propose signing an extended lease that concludes during the summer. This timing ensures that the apartment becomes available when the landlord can attract a larger pool of potential tenants. By offering stability to the landlord in the interim, you increase the likelihood of them being open to negotiation and accommodating certain trade-offs.
Explore Private Rentals
Private rentals are properties owned by individuals or families, in contrast to large apartment complexes owned by corporations. These private rentals encompass various types of accommodations, including houses, apartments, or even separate guest houses.
When dealing with private landlords, you may find them more flexible regarding application fees or deposits. They are not bound by strict corporate guidelines, which can make them more open to negotiating rent amounts or disregarding past evictions that might hinder your ability to rent elsewhere.
Nevertheless, it's important to note that each landlord has their own approach and policies. Some private landlords may even cover the costs of background checks themselves. To avoid any unforeseen inconveniences, it is advisable to be upfront about your situation and expectations from the outset of your communication with them.
Explore Alternative Locations
One of the most effective ways to save on rent is to consider relocating to a different area. Major cities such as New York and Los Angeles are known for their attractiveness but come with high rental costs. In 2022, the average rent for a one-bedroom apartment in New York was $3,650, while in Los Angeles, it was $2,680. If you desire an urban lifestyle but find these prices unaffordable, it's worth exploring emerging cities like Oklahoma City ($750) or El Paso ($930). These locations offer a more budget-friendly option while still providing an urban vibe.
Propose Maintenance Work in Exchange for Rent Discount
If you possess skills in appliance repairs or plumbing, you can propose to handle necessary repairs for your landlord in exchange for a reduction in rent. Landlords often incur expenses when hiring professionals to fix maintenance issues, so they might be open to this arrangement if it saves them time and money. Even if you're not particularly skilled in those areas, you can still offer to perform tasks such as lawn mowing or hedge trimming, which don't require special expertise.
Inquire About Tenant Referral Incentives
It can be beneficial to ask your landlord if they have a tenant referral program in place. Some landlords, especially larger apartment companies, offer monetary incentives for referring new tenants. This is more likely to be available when there are multiple vacancies that need to be filled. However, private landlords with only a few properties may not offer significant rewards or any at all for referrals. Nevertheless, it's worth inquiring about referral opportunities as it doesn't hurt to ask and you may discover an opportunity to earn some extra benefits.
Conclusion
In conclusion, there are various strategies to save money on apartment rentals. These include having a roommate, negotiating at lease renewal, considering upfront payment or a lengthy lease, giving up a parking space, searching for apartments during winter, exploring private rentals and alternative locations, proposing maintenance work, and inquiring about tenant referral incentives. Thank you for reading! We hope this article was helpful in answering the question how to save money on an apartment rental.
