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Making monthly rent payments online is an easy way to simplify your life. And if you choose to use a credit card for those payments, you might be able to accrue extra benefits while you’re at it.
From choosing a card with valuable rewards to boosting your credit score as you build a history of on-time payments, being strategic about your biggest monthly bill can have a positive impact on your overall financial health.
How to Pay Rent With Your Credit Card
The first step is asking your landlord if they allow renters to pay rent online. If they do, find out which platform or rent collection app they use and make sure it’s trustworthy and secure. If they don’t accept online payments, you can invite them to use the secure payment system through Avail.
With Avail, you can pay rent with a bank account, credit card, or debit card — whichever method you prefer. You can log in to make individual payments, or set up automatic payments for the same time each month using Autopay. If you and a roommate split the rent, you can each set up your own profile and payment amounts rather than having to coordinate reimbursement every time. You can also choose a day for the funds to be withdrawn, with information on when the payment will deposit in your landlord’s account so you can avoid late fees.
However, there are other options as well like PayPal and Venmo, but they often have less payment protection in place for rent-related payments.
What Are the Benefits of Paying Rent With a Credit Card?
Credit bureaus calculate your credit score using a variety of factors meant to predict the likelihood that you’ll be able to repay your debts on time and in full. The higher your credit score, the better your odds are of being approved for loans, offered lower interest rates, and looking like a prime candidate to future landlords.
To boost your FICO® score (the credit score referenced in 90% of all lending decisions), the single best thing you can do is to never miss a bill payment. When you pay your landlord by check or cash, it’s up to them to report the payment — but it’s not required that they do so. As a result, many tenants don’t get their good behavior reflected in their credit score.
Paying by credit card, however, ensures the payment is automatically reported to the credit bureaus. It also gives you the option to set up recurring payments to ensure you never miss a deadline. Using a credit card also allows you an extra level of flexibility if the rent is due a couple days before your next paycheck arrives.
Be careful here though: The benefits of using a credit card to pay rent only work out if you’re able to pay off your credit card balance promptly each month. If not, you’ll be charged interest and your credit utilization (another factor in determining your credit score) can start to work against you if your balance creeps up.
What Are the Best Credit Cards for Paying Rent?
Generally, you want to choose a card with no annual fee, a low interest rate, and the best perks for your lifestyle. If you know you have the financial stability to immediately and fully pay off your credit card balance every month, the interest rate is less of a factor, but in general it’s best to avoid high interest rate cards.
Cards that offer cash back for monthly purchases over $500, for example, could be a great choice if you know your rent payment is more than that. By making that one payment every month, you’ll earn cash back every time. Making rent payments with a credit card usually includes a small processing fee (3.5% through Avail), and while many renters find paying with a credit card to be worth it despite the fee, be sure to account for it in your budget.
Credit cards that offer travel rewards may also be a good perk. Some cards offer 50,000 airline miles if you spend at least $2,500 within the first three months of opening the card. Since rent payments are a larger, fixed cost, you’ll know before you apply for the card if you can meet the threshold for the perk.
Rewards toward “everyday spending” are another category of credit card perks that could work in your favor. The more you use these cards, the more cash-back rewards you can accumulate toward household expenses like groceries and streaming services, often with no expiration date for use.
Ultimately, the best credit card to use to pay rent is the one that yields the biggest benefits for the way you spend money.
Should I Pay Rent With a Credit Card?
If you can easily pay off the rent amount before the next billing cycle to avoid accruing interest, then paying with a credit card may be a good idea. If that’s not the case and you struggle with credit card debt, then it may make more sense to pay rent with a debit card or checking account to save on fees and avoid having to pay interest.
Most payment platforms also charge higher fees when paying with a credit card versus a debit card or checking account, which is another factor to consider.
Does Paying Rent With a Credit Card Affect Credit Score?
Paying rent with a credit card can affect your credit score if you’re unable to pay off the amount before the next billing cycle. In those instances, your credit score may change if your credit utilization increases or you’re unable to make consistent on-time payments.
If you’re looking to build your credit, you can pay rent with a debit card or checking account and report those on-time payments to TransUnion with CreditBoost.* For $3.95/per reported month, you can build your FICO 9, FICO XD, and VantageScore credit score with each on-time rent payment. You’ll need to invite your landlord to join Avail, but you can easily take advantage of CreditBoost once your landlord has set you up to pay rent online through the platform.
Pay Rent Online With Avail
The process is quick and easy on Avail and comes with the option to turn on CreditBoost to build up your credit score with timely rent payments. Create an account today to invite your landlord to join Avail and get you set up to make online rent payments.
*CreditBoost results may vary by individual.
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Renting an apartment on its own can be a stressful and confusing task. There are specific move-in and move-out times, plans to be made for moving furniture, varying lease agreements, and constant changes to local renting laws.
On top of that, renting fees, which can get expensive quickly, are often overlooked. In order to avoid any unnecessary confusion or guesswork when signing a rental agreement and moving in, it’s important to familiarize yourself with the common fees that could be involved.
Application Fees
One of the most commonly seen non-refundable fees is an application fee. This money goes towards the cost of credit checks, rental history, and background checks that your landlord or management company runs before accepting you as a renter.
On average, an application fee runs between $40 to $100 per renter. Sometimes, landlords will count application fees towards your first month’s rent, so ask your landlord if this is a possibility for you.
To avoid multiple rental application fees during the apartment hunting process, use an Avail Renter Profile that can be shared with as many landlords as you need.
Move-In and Move-Out Fees
Move-in fees are typically paid before you move into a rental unit or apartment building. These fees are nonrefundable and are sent to the homeowners association, usually ranging between $200 to $400, depending on the building.
Move-out fees are more typical in high-rise apartment buildings, but they can apply to a wide range of rental units. Move out fees are nonrefundable, and usually range from $150 to $350.
Parking Fees
Not every building offers parking — especially in big cities — and if it is offered, the charges and parking situations differ from rental to rental. It’s smart to evaluate how important this is to you as a renter. Some parking spots tack on an additional cost to your rent, while others come in the form of an annual payment of a few hundred dollars.
Security Deposit
A security deposit is one of the fees that you’ll hopefully see back in your pocket at the end of your lease. This fee is used as an incentive for renters to take care of their apartment during their lease and is used by the landlord to cover the cost of any damages caused by the renter.
Before you move out, it’s typical for your landlord to analyze the state of your apartment to determine any appropriate deductions from the deposit. A landlord can legally deduct the cost of necessary repairs from the security deposit, but can’t deduct money for everyday wear and tear. As long as you keep your apartment in good condition, you should receive your deposit money back about two months after moving out.
Utility Fees
While utility fees range depending on the building and city, most apartments have at least one kind of utility fee. These can include water, gas, electricity, and even WiFi. Be sure to ask your prospective landlord about the situation surrounding utility fees before signing a lease, as these extra costs can quickly add up in addition to your monthly rent.
Elevator Fees and Deposits
Particularly in condos and high-rises, you might see an elevator fee or an elevator deposit as an additional part of your move-in and move-out costs. Some buildings will charge a fee just to use the elevators for moving, while others will hold a deposit while you’re moving in case of damage. If you are moving into an apartment building that has an elevator (or a freight elevator), be aware that additional costs may come with it.
Administrative Fees
It is not uncommon to pay a several hundred dollar administrative fee when you apply for an apartment, either through a property management company or with an independent landlord. If you do pay an administrative fee and your application is denied, you can expect the full amount back. However, the fee is non-refundable once your application has been accepted.
Pet Fees
Oftentimes, a landlord will charge another fee or set of fees if you plan on having a pet in the apartment. In some buildings, cat fees will range from $150 to $300, while dog fees could cost anywhere from $300 to $500.
Similar to a security deposit, many landlords ask for a “pet deposit,” which you can expect to get back at the end of your lease if there’s no damage done to the apartment by your pet.
Some landlords will simply increase your rent per month, often by $25 to $50, if you plan on living with a pet as a form of “pet rent.” Be sure to ask your landlord before you sign your lease if you plan on bringing a pet as every building’s pet fees are different.
Renters Insurance
A fee that’s sometimes required by a landlord — but is always important to consider — is renters insurance. With all the other rental fees to consider, renters insurance might be the last thing on your mind. However, it’s wise to consider this extra cost in case your apartment is broken into or personal items are lost, stolen, or damaged during your lease.
Many landlords require that their renters have renters insurance to live in their property, so it’s worth looking into affordable renters insurance that just covers the things you need.
Renting an apartment can seem like a whole list of hidden fees, but it doesn’t have to feel overwhelming. Clarifying with your landlord what fees on this list apply to you, and what is included or excluded from your rent, will give you an idea of what’s ahead before you sign a lease.
Since moving and rental fees can add up, make sure you protect the deposit money you can get back by using a move-in and move-out checklist.
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Negotiating rent can seem like a daunting task, especially if you’re not accustomed to bargaining or have never done it before. Whether you are a returning renter or you’ve found a new apartment that you love but it’s just outside of your budget, negotiating rent with your landlord can be an advantageous next step.
To guide you along the process, we share how to negotiate rent while remaining polite and fair.
How to Negotiate Rent As a Returning Renter
Oftentimes, landlords will adjust rent to a higher price each year to accommodate inflation and tax rate increases in your area. If this is something you anticipate happening in your apartment building and you plan on renewing your lease, here are a few things to keep in mind if you want to avoid a significant rent increase.
1. Plan Ahead
Ensure you are asking to negotiate rent within a reasonable amount of time before your lease ends, which is typically 60 to 90 days before the lease end date. If you ask just weeks before the end of your lease, you are less likely to have your request considered or approved.
2. Make a List of Outdated Features of the Rental
It is also important to have a game plan in mind for the points you want to make while discussing your rent. To ensure your expectations are realistic, it may be helpful to compile a list of outdated apartment amenities that can justify lowering the current rent price.
If you can prove that certain features in the rental are outdated and contribute to a negative renting experience, then this can potentially help in convincing your landlord to reduce the rent price or install new amenities before the new lease term starts.
3. Offer Documentation
Whether you present your case in-person or virtually, it is essential to have important documentation on hand to build your case when asking for a lower rent. Some examples of this might be to highlight your strengths as a renter, show your new and improved credit score, or present example prices for similar rental listings in your area, which can be found on a variety of apartment-listing websites.
If your credit score is something you are looking to boost before you have this conversation, consider using a platform like CreditBoost that can help you improve your credit score by making rent payments on time*.
4. Sign a Longer Lease
Since finding new renters is quite a hassle for landlords, your landlord might be more inclined to let you sign a longer lease at a discounted rent rate if you’ve been a great renter. Longer lease terms generally range from 13 to 24 months, depending on the landlord and local landlord-tenant laws.
How to Negotiate Rent As a Prospective Renter
The key to negotiating rent as a newcomer to an apartment is looking for something to offer the landlord in exchange. If it comes down to dollars, look for ways in which services or maintenance can be put on the table when discussing a cheaper rent price.
1. Pay Rent in Advance
Some renters offer to prepay several months in advance for a slightly lower rate. Keep in mind that while some landlords allow this, many don’t, so be sure to check with the landlord first.
2. Time the Market
During peak rental season (usually the summer months), rent rates will be higher since demand is higher. But if you move outside of these peak moving months, you may have more room to negotiate your rent or find rent-related deals on apartments.
3. Assess the Quality of the Amenities
If you can live with giving up something like a parking space that comes with the building, you can avoid the associated costs and help lower your rent.
If there is something about the apartment that you believe could be updated or added within reason, such as newer appliances, a parking spot, or an AC unit, be sure to bring these up to your future landlord to further your case for a lower rent.
4. Have a Rental Resume
For a prospective renter, having a rental resume allows landlords to gain a sense of how trustworthy you are as a renter, highlighting your past apartments, your education, any information about you and your roommates, credit score, work history, or anything that may be relevant to a landlord.
Report On-Time Rent Payments With CreditBoost
The important thing to remember when negotiating rent is that, in the end, both parties should be content with a mutually agreed-upon price. That might require friendly negotiating with a landlord and compromises made on both sides, which may seem intimidating at first, but can be accomplished with a friendly conversation and a proper plan. To know if you’re satisfied with the final decision, ask yourself: Is what comes with this negotiation worth the effort?
Once you’ve determined the best way to negotiate a rent price with your landlord, invite your landlord to join Avail to allow you to report on-time rent payments to TransUnion with CreditBoost. Create an account to easily build your your FICO 9, FICO XD, and VantageScore credit score all in one place.
*CreditBoost results may vary by individual.
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Almost half of all U.S. renters spend more than 30% of their income on rent, which is why it’s important to know how to budget for an apartment to avoid financial hardship. Considering rent prices are anticipated to rise, properly budgeting for rent can ensure you don’t overpay in rent and have enough income to cover other monthly expenses.
In this article, we walk you through the process of budgeting for an apartment to help you save on costs.
Rent Budgeting Rules to Follow
There are two widely-accepted budgeting rules you can use: the 30% rule and the 50-30-20 model. Here is how both rules differ from one another to determine which method makes the most sense for you.
The 30% Rule
The 30% rule suggests you should try to spend around 30% of your gross income on rent. However, more financial experts are turning away from this rule since more renters are paying more than 30% due to inflation and the growing costs of renting.
The 50-30-20 Rule
According to this model, 50% goes towards fixed expenses, 30% goes towards “fun” costs, and 20% is set aside for savings. This budgeting rule provides more flexibility on how much to spend on rent, which is why experts recommend using this method instead of the 30% rule.
How to Budget for an Apartment
When budgeting for an apartment, there are certain steps to complete. Here are steps to help you determine how much to spend on rent and other renting-related expenses.
1. Determine Your Current Monthly Expenses
While budgeting can be an effective way to manage your finances, it only works if you account for all of your monthly expenses. For that reason, determine what your total monthly costs are, what bills you need to pay each month, and how much you can afford to spend on rent. Keep in mind that some costs can vary throughout the year, so account for seasonal changes based on previous charges.
2. Forecast Renting-Related Costs You’ll Need to Cover
Once you’ve determined what your current expenses are, consider what renting-related costs you’ll need to cover. Examples of costs include:
- An application fee
- Moving expenses
- A security deposit or move-in fee
- First month’s rent
- Pet fee and pet rent (if applicable)
- Monthly parking fee
- Renters insurance
- Utilities (i.e., internet, gas, electricity, water)
These costs vary depending on where you live, so get estimates to help you figure out how much to budget.
3. Use a Spreadsheet or a Budgeting App to Manage Finances
Actively tracking your monthly expenses can help you stay within your budget and cut down on costs that make it harder to build an emergency fund. A spreadsheet may make more sense if you prefer to track your expenses manually. But a budgeting app can streamline the process for you if you prefer a less time-consuming option.
6 Tips for Budgeting for an Apartment
In addition to budgeting for an apartment, some tips and tricks can help you save on expenses as a renter and reduce the financial burden of renting. Here are some tips for first-time and seasoned renters:
- Use a budgeting app to track your monthly spending
- Save up to three months of rent before moving to a new rental
- Look for rentals that include utilities in the rent price
- Use apartment-hunting sites to find rentals within your budget
- Create an Avail Renter Profile to save on application fees and limit credit checks
- Thoroughly review the lease to avoid violating rules that result in expensive fees
- Get renter’s insurance to protect your personal belongings
Save on Application Fees With Avail
Budgeting for an apartment is a great way to save money as a renter and feel confident during your search. Once you’ve determined how much rent you can afford, you can explore apartment-hunting sites to help you find local rentals near you. To help you save on application fees, you can create an Avail Renter Profile to easily share your profile with multiple landlords and retract your information once you’re no longer interested in a rental property.
Create an account today to fill out your profile and share it with landlords in minutes.
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