This article lists the different costs of renting an apartment that you should be aware of and prepare for when renting an apartment.
Most landlords will charge an application fee or administration fee when you apply to rent their apartment. This fee is usually non-refundable, so it shows that you are really interested in renting the apartment. For the landlord, it covers the costs of processing your rental application, such as ordering credit checks and background checks.
The Security Deposit can be anything from a few $100 up to the equivalent of a full month’s rent. It provides the landlord with a financial cushion to pay for any damage you might cause to the apartment during the lease. A security deposit is usually refundable if you leave the apartment in good condition at the end of your lease. It should be clearly stated in the lease agreement what the security deposit can be used for and how you get it back.
Pro-Tip: Take photos of the apartment on move-in day and send these photos to the landlord as proof of the condition of the apartment. When you move out, it will be easy to prove that the cracked tile in the bathroom floor was there when you moved in!
First and Last Month’s Rent. It’s pretty obvious that you’ll have to pay the first month’s rent upfront before you get the keys to move in, but in many cases, landlords also ask for the last month’s rent. It may seem steep to have to pay the equivalent of two months’ rent just to move in (three if you count the security deposit), but there are advantages to paying this upfront. The last month’s rent is refundable at the end of your lease and can be used towards the costs of moving to your next apartment.
Other Fees. Yes, there’s more… but this does depend on the apartment you’re renting. If you’re moving into a gated community or large apartment building, there might be a fee for the keycard or the remote to the gates or building. In case you’re moving in with a pet, landlords might also charge a Pet Deposit in case extra cleaning or repairs are needed because of your pet.
Be sure to ask if things like parking, or the use of other amenities, are included in your rent. The brochure might have pictures of a pool, fully-equipped fitness room, party room, laundry room, or extra storage, but these amenities sometimes cost extra.
Finally, let’s not forget the rent. Make sure you understand what is included in the rent. For example, you’ll want to know if the rent includes any utilities. This can vary from place to place, and not all rental markets are the same. It’s great if everything is included in your rent, but it’s more common for landlords to expect you to set up your own utility accounts.
We hope this article has been useful. The best way to avoid surprises is to ask questions and read the lease agreement carefully before you sign!
