With rents skyrocketing across the U.S. it can be hard to find somewhere affordable. But there are things you can do to reduce your rent. One won't come as a surprise, but the second just might...
1 - Split the cost of living by sharing with roommates
It's simple - by sharing an apartment you pay less. The cost of the shared spaces is split between more people and everyone's rent is cheaper. Not only that, by sharing you can often live in a better neighborhood than you could afford on your own. We get it though, lots of you will already be doing this, so what can you do to save money?
2 - Join an existing lease
With rents hitting all-time highs in most major metro areas over the past year, even signing a new lease with roommates is going to be expensive. However, if you join an existing lease (either by replacing someone's roommate who's moving out, or even finding someone who didn't previously have a roommate but has decided to get one) you could save a lot.
Think about it - if you join an existing lease, you could well be paying rent set a year ago, or longer. In the past 12 months, rents in New York went up by 24%. But it's not just a New York thing. Since the start of 2022, here's how much rents have gone up in the following major metro areas:
- New York - 24%
- Washington D.C. - 16%
- Boston - 15%
- Miami - 14%
- Dallas - 13%
Just by signing up to last year's rent levels, you could be saving up to $350 per month. Over the course of the next 12 months that could really add up. Just saving $100 per month makes you $1,200 better off by this time next year.
You'll also avoid paying a broker’s fee and a security deposit, which saves you even more. Even if the lease only has a few months left to run, before the rent goes up, the savings could outweigh the increase.
3 - Consider living with a homeowner
The other thing to consider is living with a homeowner as their roommate. On average these types of rooms are cheaper than the average rent charged by landlords or brokers.
A note of caution
It's important to remember that being someone's roommate means you won’t be on the lease, so you may have fewer protections in place. On the other hand, if the rent does go up more than you can afford when it's time to renew, it's easier for you to leave if you need to.