How to Save Money on Your Next Apartment

Like a mortgage, rent on an apartment is one expense that will never go down; at least until you move. That’s why it’s so important to find the right apartment with rent (and utilities) you can afford, lest you get stuck paying way more than you should until the lease runs out.

Here are a few money-saving tips to keep in mind the next time you go apartment hunting.

Don’t Rush

Leave plenty of time to find an apartment before you have to move. Start looking at least two months before your moving date. You’ll be able to see and apply for more apartments that way, and you’ll have the upper hand in any potential negotiations with the landlord because you aren’t desperate for a new place.

Don’t Pay a Fee

Realtors and brokers often post apartment listings on the Web and elsewhere, show you one or more units, and don’t explain that if you take the pad, they’ll hit you with a finder’s fee of up to a month’s rent. No thanks. Renting an apartment isn’t nearly as complicated as buying a home, so there’s usually no need for an intermediary between tenant and landlord. Ask if the person showing you the apartment is the owner. If not, make sure you won’t be charged a fee before you sign the lease.

Negotiate, Negotiate

Everything is negotiable, including your rent. That is, it’s negotiable until you sign the lease. When you’re interested in taking an apartment, call the landlord and offer to move-in for less rent than asked. If he or she balks, point out anything in the unit in need of repairs (outdated appliances, old tile in bathrooms, etc.). If you’re looking at apartment complexes, shop around for any that have move-in specials. Many will give you a month’s free rent with a year lease if you move-in during a slow month (February-April and October-November are the best months for apartment deals).

Know Your Utility Costs Before You Move

Landing a cheap apartment will do you no good if the unit is so poorly insulated it costs a fortune to heat it. Ask your landlord for copies of the previous few months’ electric, water, and oil or gas bills to get an idea what your additional monthly expenses will be.

Get the Utilities Included If You Can

Although unusual at apartments that are professionally managed, some independent landlords will include some or all of the utilities in the rent. This may be an incentive to attract tenants, or perhaps because the building isn’t set up for individual unit billing. Either way, you’ll usually score a good deal when the utilities are included, because you’ll pay the same monthly fee regardless of how much heat or electricity you use.

Read Your Lease Carefully

Leases are designed to protect both tenants and landlords, so read yours carefully. Pay attention to any costs you may incur above and beyond your rent. What is the penalty for moving-out early? How much notice do you have to give to avoid such a penalty? The landlord should be responsible for any repairs, appliances, and maintenance. Sometimes, however, landlords will specify that they will not provide certain services like snow removal.

Go Month-to-Month

Ask prospective landlords if they would consider a tenant-at-will or month-to-month lease. Rather than requiring you to pay a year or more of rent or face penalties, a tenant-at-will agreement will give you the right to move out anytime (with proper notice) without being responsible for fees or legal fees.

Protect Your Deposit

When you move in, many landlords collect a security deposit of between one half and a full month’s rent. Landlords can use this money to cover any damage you cause to their property. If you move out and everything is still in top shape, however, that money belongs to you, plus any earned interest. Be sure your lease clearly outlines the terms under which your landlord may take your deposit and when and how you’ll get your money back.

Do you have any tricks for saving money on your rent when you’re shopping for a new apartment? Let me know!

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Jake 22 October 2008 at 2:30 pm permalink

Who does not know this stuff, seriously? This is like common sense apartment hunting information. My impression after reading this was, duh. This blog over all seems like it is written for people with no life skills, no idea how to manage money and no idea how to be responsible with a credit card.
It is fun to glance at the blog once and a while because most likely it will make you feel superior because all the information/advice is common sense.

Here is a tip for everyone. If you can not afford to pay cash for something then do not buy it. Pretty simple. If you really want it, then maybe you should find a higher paying job or go back to school get an advanced education and get a better paying job.

Set goals and look at them everyday!

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Money Under 30 22 October 2008 at 3:15 pm permalink

Jake,

Congrats on being superior to everybody, seriously.

If you have already learned–through life experience, your parents, or wherever else, everything there is to know about living cheaply, paying cash, saving, etc., then you have no reason to read this blog nor any of the thousands of personal finance books available.

The truth is most people–and especially people in their twenties–need this info. If you’ve never looked for an apartment before, you very well might NOT know that broker fees are NOT normal, or that you’re supposed to earn interest on your security deposit.

One of my goals for this site is to create a base of information on basic financial topics like this. YES, it’s common sense to many, but not to a lot of people, and it’s critical information for those just starting out.

As for your last point, you’re right. Those are the basics of getting rich. Problem is, it’s easy to write it in two sentences; it’s far harder for most people to get it done without understanding why, and getting some inspiration along the way.

Thanks for reading, even if it’s just to inflate your own ego.

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Jake 23 October 2008 at 3:38 am permalink

All the letters after my name inflate my ego not blog postings.
Well keep up the good fight. I do agree with you though, common sense to one person may not be to another depending on a persons’ education and parents. Point taken.

You have been writing with a financial focus for 5 years, I am just curious to see more more substance in the posting with that kind of experience.

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