It's not anyone's business how much someone decides to pay on rent, I pay a lot but I also live in a fabulous apartment that makes me happy, and don't really care how much of a saving I could make if I lived somewhere else. If you are paying in USD then the second year increase shouldn't apply - my landlord told me that the rent would increase because of inflation but I argued that I am paying in USD so it shouldn't apply and she reluctantly agreed. Also, paying a huge slab upfront is not a stupid idea, it gives you some extra bargaining power, I negotiated the monthly rent down by 25% that way - and a lot more considering how much the aussie dollar has dropped since then.