Where You Can Lower Apartment Rental Costs

Keep in mind that rental markets can be dynamic, and the exact impact of each factor can vary over time. To come up with the price difference, we used West Toronto’s rents as a reference. Here\’s a list of ways to lower apartment rental costs in Toronto:

Move in with a partner: Up to $1,200 savings/month

We know this might not be an option for everyone, but the savings are too good to ignore. Unfortunately, your biggest rental savings are not related to apartment choice. Perhaps after reading this, you might feel compelled to share your bed with a potential partner or that BFF.

Toronto is a city where living with a working partner pays off big-time financially and can be the difference between a life of scarcity and a life of abundance. Moving in with your partner instantly cuts your rental costs by half ̶ no need to upgrade to a bigger apartment, especially if you already live in a one-bedroom. However, check if your landlord will raise rent if another person moves in.

Other than that, the risk is low since the worst-case scenario is going your separate ways and returning to your previous situation. Or even worse, you might want to stay in a bad relationship just because of the savings!

Move in with a roommate: Up to $900 savings/month

Again, this might not be an option for everyone, especially if you prefer to live alone. However, moving from a studio to a two-bedroom apartment with a roommate can result in significant savings since you\’ll split rental costs. What’s more, if you’re moving from a one-bedroom to a shared two-bedroom, the savings will be even more significant.

The only caveat is that you should be prepared for potential changes in your living arrangement, particularly if your roommate moves out and you must cover the entire cost: high risk, high reward.

Property age and condition: Up to $500 savings/month

In our research, property age and building condition play a pivotal role in reducing rents. Older buildings command a lower rent due to factors like outdated amenities and fixtures. Apartments in newer buildings tend to cost more.

On Dupont Street, new studio apartments range from $2,400 to $2,600 ̶ or even more ̶ however, you can find an older unit for around $2,000 to $2,200.

While new apartments provide a fresh, modern feel to your home, older units can offer a unique and budget-friendly living experience. They provide potential savings and the advantage of better sound insulation, which can greatly enhance your quality of life.

Unit size: Up to $500 savings/month

Smaller studio and one-bedroom apartments usually have lower rents compared to larger units. The price difference is directly related to the square footage.

While price difference for studios and one-bedroom apartments may blur at times, you can still save a significant amount by downsizing within the same building or considering smaller units in your apartment search. Smaller apartments not only offer potential monthly savings but also promote a simpler and more efficient way of life.

In High Park, the rent gap between studios and one-bedrooms within the same buildings is usually around $300-400. At Bloor and Dufferin, the gap can reach $500. Much of the difference has to do with the square footage.

Location and neighbourhood: Up to $250 savings/month

Apartments located in less trendy or central neighbourhoods tend to be more affordable. Higher-demand neighbourhoods usually come with a premium because of factors like proximity to public transport, workplaces, and amenities.

Nevertheless, with a lower availability of units, the price gap between living in the downtown area and the suburbs has narrowed over time. The pandemic reduced the gap further as the suburbs became more attractive.

For that reason, while you can generally find cheaper units farther from the city centre, you should not expect a jarring difference in price. For that reason, staying in more affordable central areas for the same price you’d pay living 10-12 kilometres from Union Station is possible.

Off-peak rental season: Up to $200 savings/month

Rental prices can fluctuate throughout the year due to the demand and supply dynamics of the rental market. During higher vacancy rates, landlords might lower rents to attract tenants.

This especially happens when college students’ leases expire in the spring. This makes spring one of the best times to search for apartments, as landlords compete to fill their vacant units.

Conversely, the period before the start of the university semester is typically the worst time to search for apartments. Many students are actively looking for housing, creating a surge in demand and potentially driving up prices.

Balcony: Up to $200 savings/month

A 100-square-foot balcony on the 12^th floor is a nice perk but it comes with a substantial cost. When looking for apartments in the same building, apartments with a smaller or no balcony are more affordable.

Parking: Up to $200 savings/month

Apartments with dedicated parking spaces can come at an additional cost. If parking is not a priority for you, looking for apartments without parking could save you money, especially since the price difference can be as much as $200.

Privacy and view: Up to $150 savings/month

Ground-floor and basement units or those with less desirable views (e.g. facing a wall or an alley) might have lower rents than units with better views or on higher floors.

Amenities: Up to $150 savings/month

Apartments with fewer or no amenities (such as gyms, pools, or communal spaces) tend to have lower rents. Buildings with extensive amenities usually come with higher maintenance costs, which are passed on to tenants. The difference between an apartment with amenities and one with few to none falls in the range of $100-200.

Lease length: Up to $150 savings/month

Landlords may offer lower monthly rents to tenants who commit to longer terms. Consider signing a longer lease, such as a 13- or 18-month lease instead of a 12-month lease, especially when dealing with corporate landlords. In some cases, transitioning from a month-to-month arrangement to a longer-term lease can save hundreds of dollars per month.

Furniture: Up to $100 savings/month

Unfurnished apartments are generally more affordable than furnished ones. If you have your own furniture, consider choosing an unfurnished apartment to save on monthly costs.

Laundry: Up to $60 savings/month

Apartments with in-unit laundry facilities might have higher rents than those with shared or no laundry facilities. While you can save up to $100 by opting for no in-unit laundry, on average, you will spend around $8 each time you wash and dry using shared laundry facilities

Utilities: Up to $50 savings/month

Apartments with included utilities (such as water, electricity, and gas) often have slightly higher rents than apartments where tenants pay utilities separately.

While you cannot avoid utility costs – which can vary from $150 to $225 – you can have better control over their use when you pay them separately, especially when it comes to hydro use in the winter.

Discount: Up to $50 savings/month

You shouldn\’t expect significant rental discounts in the current rental market. However, after demonstrating that you are a good tenant, you can try to negotiate lower rent rates. Our experience shows discounts can be as much as 2-3% of the monthly total.

Thank you for taking the time to read our blog. We\’d love to hear your thoughts on this topic. What\’s your experience with this? Please share in the comments below. Your insights can help others in our community learn and grow together.