How to save on the cost of renting an apartment in Canada
When you think of renting, what comes to mind?
If you’re looking to save money on rent, you might think of the price you pay for your home or apartment, as well as the type of home you rent.
But you can also look at the quality of the homes you rent, the services you’re offered and even the rental amenities you enjoy, says Peter Maclean, senior economist with BMO Nesbitt Burns.
“We’re talking about renting that’s not cheap and also a quality product,” Maclean says.
In Canada, a quality home means a home that’s built to last, is well maintained and provides the same quality of living that you’re used to in your home.
That means a lot of the time, a home is a great investment.
If the home is rented for an average of four months a year, you can expect to save $8,500 in rent each year, according to RentHop.com.
RentHop has found that a quality, well-maintained home is worth $12,000 a year compared to $8.50 a month on average for a similar home with a smaller yard.
A new home can also be a great place to start if you want to find a new home, says Maclean.
“It’s a good place to learn about the different aspects of living in your new home.”
For a comparison, Maclean compares the median income of people renting versus those renting.
For example, a new owner who’s renting could be in the top 20 per cent of earners in Canada.
However, the median house value for new owners renting is $3.8 million.
The average income of those renting a home compared to those renting an average $3,200-a-month apartment is $42,800, according the Canadian Real Estate Association.
How much you’ll save As a new homeowner, you’re paying rent for the first six months, but your income increases during the first two years.
You’ll need to make more money than you had in your first home to pay the rent, so it’s a little harder to keep up with rent increases.
Also, you may have to work a few extra jobs to pay for rent, MacLean says.