How to Save Money on Rent: 9 Tips to Save While Renting

Renting in Canada is more expensive than ever. As of early 2025, the average monthly rent across all property types is hovering around $2,200. That’s a significant burden, especially when compared to the general guideline that rent and related housing costs should not exceed 35% of your gross income, a target that’s becoming increasingly unrealistic for many Canadians with rising rent prices.

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Whether you’re living in downtown Toronto, suburban Calgary, or a mid-sized city like Halifax, rent is taking up more of the monthly budget than it used to. For many, there’s little extra money left for savings or other financial goals after housing is paid. The pressure is especially strong on younger renters, newcomers to Canada, and single-income households.

The good news: there are realistic ways to reduce how much you spend on rent. From strategic moves and negotiation tactics to government rebates and rent-to-own programs, there are practical solutions for every situation. Here are nine actionable tips to help you save money on rent, plus a smart alternative if you're ready to stop renting altogether.

Key takeaways

• You can save money on rent by downsizing, getting a roommate, or moving neighbourhoods can save hundreds each month.
• Reducing utility bills, subscriptions like streaming services, and offering trade work or help with property maintenance to your landlord can help you earn extra cash and cut living costs.
• Renting-to-own is an increasingly popular way to turn rent into a path to homeownership.

9 ways to save for a house while renting

1. Get a roommate to split rent costs

Sharing your space is one of the most effective ways to cut housing expenses. Renting a two-bedroom with a roommate often costs far less per person than leasing a one-bedroom on your own. In high-rent cities, this can mean savings of $500 or more each month.

How to make it work:

• Use trusted platforms like Roomies.ca, Facebook housing groups, or university housing boards to find reliable, verified roommates.
• Set clear ground rules upfront—covering cleaning duties, shared expenses, and guest policies—to avoid misunderstandings.
• Choose the right layout: units with two bathrooms, larger bedrooms, or extra living space help maintain privacy and reduce friction.

While co-living may not suit everyone long-term, it’s a highly effective strategy to make rent more manageable—especially in major cities.

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2. Turn rent payments into equity

Rent-to-own programs can help you save for a down payment while living in the home you plan to buy, bridging the gap between renting and ownership.

With Requity Homes, a portion of your monthly payment goes toward your future down payment. It’s a structured way to save while renting and helps turn your monthly payments into long-term value. Read more about rent-to-own contracts and agreements

How rent-to-own can help you save money on rent:

• Rent-to-own companies buy the home: Rent-to-own companies like Requity Homes purchase the home that you select. You can browse rent-to-own home listings online or bring your own preferred property, as long as it fits within the program’s budget and location criteria.
• You move in and pay rent: Each month, you pay market rent plus a “premium” that is credited toward your future down payment.
• You strengthen your credit profile: Throughout the rental term, you have the opportunity to improve your credit score by maintaining consistent, on-time rent payments, making it easier to qualify for a mortgage when the time comes.
• You build equity while renting: Over 2–3 years, these rent credits accumulate as savings.
• You buy the home: At the end of your rental term, you have the option to purchase the home at a pre-agreed price using the savings you’ve built.

This model helps renters who have stable income but limited upfront savings move toward homeownership without traditional barriers.

Tip: Use this free rent-to-own payment calculator to see how much home you can afford through a rent-to-own program

3. Find a smaller place to rent

Downsizing is one of the simplest ways to lower your monthly rent. A move from a two-bedroom to a one-bedroom—or from a one-bedroom to a studio—can reduce your costs by several hundred dollars each month, depending on the market. Often, you’re paying for space you don’t fully use.

Tips for making a smaller space work:

• Declutter before moving to avoid bringing unnecessary items into your new place.
• Choose multi-functional furniture such as beds with built-in drawers, wall-mounted desks, or nesting tables to maximize space.
• Look for smart layouts—a well-designed studio with an open floor plan can feel more functional than a poorly laid-out one-bedroom.

Smaller units also tend to have lower utility bills, which adds to your total monthly savings. If location and affordability are your priorities, less space might be a worthwhile trade-off.

4. Find a more affordable location

Where you choose to live has a major impact on your monthly rent. Even within the same city, rental prices can vary significantly from one neighbourhood to the next. Shifting just a few kilometres can make a noticeable difference—without sacrificing safety, amenities, or convenience.

Tips to lower rent by changing location:

• Compare average rents by postal code using local listing sites or rental market reports.
• Look outside the city core—areas further from downtown typically offer better value per square foot.
• Consider nearby suburbs or smaller cities with lower overall living costs but access to transit, shopping, and services.

Example: Moving from downtown Ottawa to nearby Nepean or Kanata can reduce rent by as much as 30%, with only a modest increase in commuting time. Similar savings are possible in other cities by looking just outside the urban core.

5. Lower your monthly utility bills (heat, water and hydro)

Utility costs can quietly eat into your budget, especially during the winter months. If you're paying for heat, water, or hydro separately from rent, even minor adjustments in how you use energy can lead to monthly savings of $30 to $100.

Simple ways to cut utility costs:

• Look for rentals with utilities included—this can help you avoid seasonal spikes, especially in older buildings with baseboard heating.
• Use LED bulbs and smart power strips to reduce electricity use.
• Install temporary weather stripping or window film in winter to keep heat in and drafts out.
• Unplug electronics when not in use, and run appliances like dishwashers and washing machines during off-peak hours if your province uses time-of-use billing.
• Wash clothes in cold water—it uses less energy and helps clothing last longer.

These small changes can add up, especially if you're in a unit where you're responsible for all utilities. Being energy-aware also benefits the environment—an added bonus.

6. Reduce other housing-related bills and costs

While utilities can add up, other recurring housing costs—like internet, tenant insurance, and shared household services - also take a bite out of your budget. Cutting back on these non-rent expenses can free up extra cash each month without changing your living situation.

Tips to lower additional housing expenses:

• Share internet and streaming subscriptions with roommates or neighbours, where feasible, to avoid paying for multiple accounts.
• Review your tenant insurance policy annually—bundling with auto insurance or switching providers could reduce premiums.
• Minimize service overlaps (e.g., avoid paying for both cable and multiple streaming platforms).
• Buy shared household supplies in bulk and split the cost with roommates for better value.
• Ask your landlord about appliance upgrades—even minor changes like switching to LED lighting or efficient washers can reduce long-term costs for both of you.

By trimming multiple small expenses, you could save $20 to $50 or more each month. These savings may seem minor individually but can have a big impact over the course of a year.

7. Trade work and property maintenance for lower rent

Not all rent reductions come from negotiation alone—some landlords are open to bartering. If you have useful skills or are willing to take on small responsibilities, you may be able to exchange work for a discount on your monthly rent.

Ways to offer value in exchange for savings:

• Take care of property tasks like shovelling snow, mowing the lawn, or cleaning shared spaces.
• Offer basic handyman services such as painting, fixing door handles, or installing shelves.
• Propose a written agreement outlining your responsibilities and the rent reduction amount to avoid confusion.

This arrangement works best with independent landlords or in smaller rental properties, where the owner manages maintenance personally.

Example: Ask your landlord if they’d consider reducing your rent by $50 to $100 per month in exchange for taking care of tasks like seasonal snow removal and front yard maintenance. Just a few hours of work each month could add up to $1,000 in annual savings, with no extra out-of-pocket cost.

8. Commit to a longer lease

Many landlords value stability and are often willing to offer lower rent to tenants who commit to staying longer. If you know you’ll be in the same place for at least a year, a longer lease could help you lock in a better monthly rate.

Tips for negotiating a longer lease:

• Ask if a 12- or 24-month lease comes with a rent discount or protection against rate increases.
• Balance savings with flexibility—a longer lease may limit your ability to move if your circumstances change.
• Review the lease carefully for early termination clauses, automatic renewal terms, and notice periods.

If you're confident in your living situation, this is one of the simplest ways to reduce your monthly rent without changing where you live.

9. Use housing assistance or rebates

Many renters aren’t aware that financial help is available through government programs and non-profit housing options. If you meet certain income or household criteria, you may qualify for support that reduces your monthly rent or provides annual rebates.

Ways to access housing-related assistance:

• Apply for provincial programs like Ontario’s Rent-Geared-to-Income (RGI) housing or British Columbia’s SAFER program for seniors.
• Look into housing co-operatives, which often offer lower-than-market rent in exchange for light volunteer participation or community involvement.
• Check your eligibility for federal tax credits, such as the Canada Housing Benefit, which supports low- and moderate-income renters in many provinces.

These programs can offer long-term relief or temporary support if you're between jobs, new to Canada, or managing on a fixed income.

Stop wasting money on rent: Consider rent-to-own with Requity

If you feel stuck in the rental cycle with little to show for it, you’re not alone. Many Canadians want to buy but can't break through the upfront cost barrier. Requity Homes provides a clear and reliable rent-to-own solution.

We partner with respected institutions like CMHC and have been featured in CBC, Financial Post, and The Globe and Mail. Their model allows you to build equity, plan for ownership, and live in your future home now. Read rent-to-own success stories and reviews from our customers

Get pre-qualified for rent-to-own in minutes - No gimmicks. No guesswork. Just a real path to homeownership.

Frequently asked questions (FAQs) about saving money on rent

What’s the easiest way to reduce rent immediately?

Getting a roommate or moving to a cheaper neighbourhood are the fastest ways to reduce your monthly housing costs.

What is rent-to-own and how does it help you save money on rent?

Rent-to-own lets you rent a home now while saving part of your monthly payment toward buying it later, typically within 2–3 years.

Can I negotiate rent with a landlord?

Yes, especially if you’re a good tenant, renewing a lease, or moving during the off-season.

Are there government programs to help with rent in Canada?

Yes. Many provinces offer rent supplements, housing co-ops, or tax credits for eligible tenants.

What is the best way to budget rent?

A good rule of thumb is to keep your rent below 30% of your gross monthly income. Use a budgeting method like 50/30/20, where 50% of your income covers needs (including rent), 30% covers wants, and 20% goes to savings or debt. If rent exceeds 30%, look for ways to reduce other fixed costs or consider shared housing to rebalance your budget.

How can I save on rent in Canada?

To save on rent:

• Move to a less expensive area or smaller city.
• Get a roommate to split costs.
• Negotiate your lease, especially during renewal.
• Trade services (like maintenance or snow removal) for a rent discount.
• Consider rent-to-own programs, like Requity Homes, to turn payments into equity.
• Look for units with included utilities to avoid extra monthly bills.

Can I write off my rent in Canada?

Generally, residential rent is not tax-deductible in Canada for individuals. However, if you run a home-based business, you may be able to claim a portion of your rent as a business expense. Some provinces, like Ontario, allow renters to report rent paid for property tax credit eligibility, but this is not a direct deduction.

Why is rent so expensive in Canada?

High rent in Canada is driven by:

• Limited housing supply in major cities.
• Strong population growth and immigration.
• Delayed construction and zoning restrictions.
• High mortgage rates, pushing would-be buyers into the rental market.

These factors combine to keep demand high and supply low, especially in urban centres like Vancouver and Toronto.

What is the cheapest rent in Canada?

As of 2025, cities with the lowest average rent include:

• Regina, SK
• Winnipeg, MB
• Moncton, NB
• St. John’s, NL
  These cities offer 1-bedroom apartments for under $1,200/month, compared to over $2,500 in Toronto or Vancouver.

Is it better to rent or own in Canada?

It depends on your financial goals and stability. Renting offers flexibility and fewer upfront costs. Owning builds equity and long-term value but requires a down payment, good credit, and ongoing maintenance. For those who want to own but aren't mortgage-ready, rent-to-own programs can offer a middle ground.

Why is housing so unaffordable in Canada?

Housing is unaffordable due to a combination of:

• Rapid demand growth outpacing new housing supply.
• Zoning and development delays in key areas.
• Labour and material shortages in construction.
• High interest rates, which affect both buyers and developers.
• Speculative investment, especially in urban condos and detached homes.

Affordability challenges are especially severe in large cities, but they’re spreading to smaller markets too.