When you are looking for a new apartment to rent, there is a ton of excitement that goes along with that. You are going to be moving into someplace new, have new neighbors, a new location……the whole process can be quite exciting!
Something that a lot of potential tenants overlook when going into a new apartment is all of the unexpected costs that can hamper the excitement of the move-in process.
There is a strong possibility that you are going to have to budget considerably more than just the first month’s rent. You are going to have a security deposit, possibly more than one month’s rent to pay upfront depending on the lease, and a plethora of move-in costs. Some of these costs are not inconsequential.
Let’s go over some of the fees that you may have to incur as you consider your move into a new apartment so you can be prepared for them when they come.
Application Fees
These are going to be the first fees that you are going to come across when applying for a new apartment. This cost is going to be used by the landlord to offset the time, effort, and energy it takes to screen a new applicant to the complex.
Most times, this is also going to involve a credit check as well. This is going to be something done by the landlord to verify that you not only make enough money to afford the complex but also don’t have creditors after you that may inhibit your ability to pay for the apartment in the future.
The cost of the application is going to depend on the landlord and complex but can be a general fee for really anything that the landlord wants to charge for. It can also be used as a threshold that the landlord wants the applicant to jump over before applying.
By the applicant clearing this hurdle, it lets the landlord know that the applicant is serious about renting the apartment, serious enough to pay the application fees that are charged upfront. If the applicant isn’t serious or potentially not a good renter and knows they are not going to pass the background and credit checks, they are going to be less likely to pay those application fees.
Application fees, depending on whether or not they include the credit check and background check are going to run you somewhere between $25-$75 dollars.
Background Check
Something that virtually every single landlord is going to insist upon is the standard background check. This is going to include a criminal background check as well. The landlord wants to know who they are renting to, and if they have had problems with the law in the past.
The rest of the tenants at the complex also depend and rely on the landlord to undergo these checks on their behalf. They are willing to pay the cost for their own background check, knowing that everyone else is going to have to pass the same scrutiny as well.
Background checks are the first step in maintaining good clientele at any apartment complex. And while the fees for performing these checks may be annoying up front, you are going to want to have these standards in place. That way you have at least a bit of knowledge of who the landlord is letting into the units.
Standard background checks cost anywhere between $25-$50.
Security Deposit and Last Month’s Rent
A security deposit is virtually guaranteed when you are moving into a new apartment. The security deposit is typically around the price of one month’s rent at the complex. So, if your first month’s rent is $800, the security deposit is likely going to be around this amount.
The security deposit is an amount of money that you are giving the landlord to essentially hold until your rental term is up. This money is held in case you do damage or incur expenses to the landlord that they are forced to cover to make the unit whole again before the next renter.
Sometimes, an apartment complex is going to also ask that you pay the last month’s rent as well. This is a guarantee that you are not going to skip out on the lease toward the end of the contract, leaving the landlord holding the bag.
The last month’s rent is kind of an extension of the security deposit. If the security deposit was enough to ensure that the landlord was going to be made whole at the end of the lease agreement, this wouldn’t be necessary. It goes to show just how many renters have abused this and what you can gain in value if you are a good renter.
Pet Fees
If you are renting at a complex that allows pets, more than likely they are going to charge you a fee for this. Regardless of how cute and cuddly the pet of your choice is, they can smell, potentially cause damage, and annoy other tenants into leaving. These costs are offset by “Pet Fees”.
These fees most often act like security deposits. If your pets don’t cause any damage to the apartment you are living in, more than likely you can get this money back at the end of the lease.
Pet Fees are going to vary between apartment complexes but can range anywhere from $25-$100 or more per month.
Move-In Fees
Move-In Fees are expenses that the landlord must incur to make the apartment move-in ready. These are fees and expenses that are not covered by the last tenant’s security deposit. They include things like updating and putting new locks on the door and having new keys made, making sure the mailbox is ready for you to receive mail and any other things in the apartment that needs to be completed before a new tenant moves in.
The move-in fees are not meant to be spent toward things that the last tenant’s security deposit was supposed to cover, but like it or not, there is a lot that goes into making an apartment habitable and looking and feeling good for the next applicant who comes to the complex.
You could also consider Renter’s Insurance(Hyperlink the Renter’s Insurance site here once you get it up), Utilities, and the setup of TV and Internet as move-in costs as well, as you are going to have to pay for these to be set up as well.
We have written an entire article on Move-in Fees, what they are and what they consist of.
How Much Money Do I Need To Move Into An Apartment?
So how much money DO you need when moving into your new apartment?
First off, you are going to need the First Month’s Rent and Deposit. So, think about this as 2x your monthly rent. If the apartment complex requires that you provide them with the last month’s rent as well, up that number to 3x monthly rent.
Next, you are going to have costs for the application fee and the background and credit checks. This is going to run you normally somewhere between $50-$100 dollars altogether.
If you are going to want to have pets in your apartment, plan on spending another $25-$50 per month on top of your rent.
For Move-In Costs, plan on a couple hundred dollars minimum, just to be on the safe side.
In total, you are going to need somewhere between 2x-4x the amount of your normal monthly rent when you are looking at moving in. And these costs do not touch base on some of the other expenses like furnishing your apartment as well.
What Is A No-Fee Apartment?
A “No-Fee” Apartment is one in which there is no broker fee charged to the tenant to find the apartment. Sometimes, brokers or real estate agents are used to help pair potential tenants and the landlords. This service costs money, which is what the fees are for in this instant.
The vast majority of the time, you are only going to find these types of fees in more upscale apartment complexes, as the landlords are going to want the real estate agents and brokers to help with the pre-screening process of the applicant.
Moving into a new apartment can be extremely exciting! You are about to start a new chapter of your life in a new place, at a new location, possibly even with someone new. Just make sure you plan for costs that can be unexpected if you are not aware of them.
As we detailed in the article above, there are more costs to moving in than just giving the landlord the first month’s rent. There are Move-In costs, pet fees, utilities, security deposits, and background and credit checks that have to be taken care of before the landlord is going to toss you the keys. Being prepared for these costs is going to make the difference to you having a good rental experience or not.
