Here are seven strategies tenants can use to save money while living on rent:
1. Choose Your Location Wisely
Location plays a key role in rent and living costs. While prime locations offer convenience, they also come with higher rent, maintenance, and lifestyle expenses. Selecting an affordable locality close enough to work, schools, or essential services can significantly reduce monthly costs without sacrificing comfort.
2. Consider Getting a Roommate
Sharing your rental space with a roommate can split rent and utility costs. Many landlords allow renting on a per-room basis, especially in metro cities like Delhi, Mumbai, Bangalore, and Hyderabad. Check the rental agreement for subletting clauses before moving in a roommate.
3. Opt for a Smaller Configuration
If privacy is important but you want to save money, choose a smaller apartment. For example, a 1 RK (studio) typically costs less than a 1 BHK and has lower maintenance charges.
4. Avoid Fully Furnished Rentals
Furnished apartments may seem convenient but usually come at a higher monthly cost. Renting an unfurnished apartment and making a one-time investment in essential furniture can be more economical, especially if you plan to move later.
5. Check for Composite Rent Options
Composite rent packages include rent along with electricity, water, and other charges in one fixed monthly payment. This simplifies budgeting, as you won’t have to worry about fluctuating utility bills, making it easier to save.
6. Pay Your Rent in Bulk
If financially possible, paying rent or utilities in advance (monthly, quarterly, or yearly) may help you negotiate discounts or avoid administrative hassles. Always discuss this option with your landlord first.
7. Opt for a Longer Lease to Avoid Frequent Hikes
Extending your lease from 11 months to 2–3 years can help avoid annual rent hikes. If you’re unsure about the duration of stay, check the lease for penalties or clauses for early termination. You can also negotiate lower increment rates at renewal instead of automatically accepting the standard hike.
Conclusion
With careful planning, tenants can save money while living on rent. From choosing the right location to negotiating longer leases, these small strategies can help reduce monthly expenses and keep your finances under control.
Frequently Asked Questions (FAQs)
You can reduce rental expenses by choosing affordable localities, sharing rent with a roommate, opting for smaller or unfurnished apartments, paying rent in bulk, or negotiating longer lease terms.
In most Indian states, landlords are allowed to increase rent once per year, usually capped at 5–10% of the existing rent, depending on state-specific rental laws. Always check your state’s regulations.
Yes. If you are salaried and live in a rented house, you can claim House Rent Allowance (HRA) under Section 10(13A) of the Income Tax Act, which helps reduce taxable income and effectively saves money.
Infinity Housing emphasizes that by following these strategies, tenants can balance comfort and affordability while keeping rental expenses in check.
