Apartment Fees and Costs to Prepare for When Renting

Whether you’re actively looking for a new place or considering a move, you’ll want to take into consideration all expenses that impact the overall cost of renting an apartment. In addition to your monthly rent, you’ll also need to have cash on hand for a few additional renting fees and payments that may impact your renting budget.

Read on for more information about five commons renting fees and how much you can expect to spend on each one.

1. Application fee

Most property owners and property management companies require that all prospective tenants pay a nonrefundable application fee. If you are applying with a roommate, significant other, or another adult like a sibling, each of you will be required to pay an application fee.

Most landlords and property management companies require that all prospective tenants pay an application fee. It may just be around $20 but could go up as high as $75 depending on where you live.

If you’re applying with a roommate, you’ll both have to pay separately because it goes towards performing a background check. While the landlord shouldn’t be making a profit on this fee, they can use the money to find out information about you and any potential roommates before deciding on your application decision.

The background check typically looks at your credit history, eviction history, and criminal history. The landlord can also use the information you provide to verify your employment and income. All of this information is used to predict how likely you are to pay your rent on time each month. But even if you have a negative aspect on your background check like bad credit, you could still qualify to rent an apartment.

Regardless of whether or not your application is approved, you won’t receive a refund on your application fee since it’s used to pay for the background and credit check services. While an extra $25 or so may not seem like a huge sum, it’s important to factor that amount into your budget, especially if you end up having to apply to more than one apartment in order to find the right one.

2. Deposits

Security deposit

The cost to rent an apartment doesn’t just include your rent and an application fee. Once your application is approved for an apartment, you’ll probably be required to pay a security deposit, which is usually equal to one month of rent. This is used as collateral so that the landlord can be reimbursed if there’s any damage to the apartment, if you end up getting evicted for non-payment, or if you break your lease early (depending on the terms of your lease agreement).

In most cases, the security deposit is due at the time you sign your lease with your landlord. As long as you take good care of the property and make your rent payments on time, you should get it back when you move out. In some ways, you can think of it as a long-term savings account. You’ll usually get a check mailed to you within 30 days of moving out.

First and last month’s rent

Some property owners and managers also require you to pay the first and last month’s rent at the beginning of the lease. This is meant to protect the property owner if you vacate the unit before the lease term is up. However, this means an additional cost of two months of rent.

Pet deposit and fee

If you have a pet, your landlord may require an additional pet deposit since there’s a greater likelihood of stained flooring or scratched on the doors and window frames. This extra cost varies depending on your landlord, but expect to pay anywhere between $200 and $500. Pay careful attention to the wording in your lease because while a pet deposit is refundable assuming there are no damages to the rental property, a pet fee is non-refundable. It’s simply the cost required by the landlord to allow a pet to live in the property.

3. Moving costs

Moving your furniture and other belongings from one place to another requires extra hands, time, and money, especially if you aren’t moving things yourself. Moving costs can include renting a moving truck and the accessories like dollies to help with transporting large appliances and furniture. Don’t forget to include the cost of moving day meals, gas, or transportation between locations, and the cost of purchasing new furniture and items.

Many renters hire professional moving companies to transport their items. Before you decide on a moving company, whether renting a truck or hiring a professional crew, conduct diligent research. Compare prices, services, reviews, and quotes. Verify that the company is reputable, licensed, and insured.

4. Renters insurance

Another cost of renting an apartment is renters insurance, which is required in most leases.

Most rental agreements require that the renter obtain renters insurance. Renters insurance protects your property in the unit from damage and theft and provides liability coverage in the case that someone is injured in your home and sues you. Your monthly payment will depend on several factors including where you live, whether you have a pet and their type, and the value of your belongings. Some policies allow you to add the property owner to your insurance as an additional insured, which offers them limited coverage for damage to the property.

In addition to your monthly premium (which may be charged annually), you’ll also be required to pay a deductible anytime you file a claim for reimbursement. Usually it’s around $500 so if there’s a break-in and your television and laptop are stolen, you’ll only be reimbursed for the estimated value, minus $500.  

5. Utilities and internet

Depending on the type of property you rent, you may be responsible for your monthly utility and internet bills. In most cases, renters are responsible for maintaining electric, gas, water, trash disposal, cable, and internet service. Some property owners provide one or several utilities, such as water and trash disposal, in the monthly rent. Your lease will clarify which utilities and services are provided and which you are responsible for.

If you’ve never had utility service or you have a negative credit history, you may be required to pay a deposit. If you are moving to a unit serviced by the utility company, you will likely be responsible for services provided at your previous apartment as well.

Budgeting for extra costs when renting an apartment

To help you budget for your move, check out the cost of a move to an apartment for $1,200 a month with trash disposal and water included.

1. Application fees: $30. Depending on your location, fees can range from $25 to $75.
2. Security deposit: $1,200. Usually equal to one month’s rent.
3. First and last month’s rent: $2,400. Equal to two months’ rent.
4. Pet deposits and fees: $250. Pet fees and deposits can range from $150 to $500.
5. Moving Costs: $500: These costs range from $500 for local moves to over $2,000 for long-distance relocations.
6. Renters Insurance: $35. Policies usually cost up to $45 per month, although you could get a discount if you bundle it with your auto insurance company.
7. Utilities and internet: $300. For electricity, gas, and internet set up and installation fees.

The total renting fees for this move is $4,715. Your total cost will depend on the above factors.  If you are concerned about managing costs, consider getting a roommate. You can split rental costs between each other and reduce your renting fees and monthly budget.

Frequently asked questions

Final thoughts

Renting a new apartment is an exciting experience, you just need to make sure you’ve got your finances in order to avoid depleting your savings or going into debt. With these costs in mind you’re ready to be in control of your wallet every step of the way during your next move.