What are the Upfront Costs for an Apartment?

If you are planning on leasing an apartment, there are a lot of questions that you might have throughout the process: What is a security deposit and do I get it back? How much should I spend on rent, movers, and furniture? Do I need to buy renter’s insurance? It’s essential for you to know and understand all of the costs of renting. While this may seem daunting at first, having the knowledge of how much you can spend on rent and other home-related costs can make the process much easier.

Although rent can vary from place to place, below you will find some of the most common fees to expect to pay upfront when renting an apartment.

Application Fees

One of the most common non-refundable fees that you will come across when renting an apartment is an application fee. On average, this fee runs between $30 to $100 per renter, depending on your location. The money from application fees is used to cover the cost of credit checks, rental history, and background checks that must be done before accepting you as a renter.

Occasionally, landlords will count your application fee toward your first month’s rent. Be sure to check with your landlord if that is a possibility for you.

Security Deposit

Once your tenant application has been accepted by your landlord, or the leasing office, you will likely have to pay a security deposit. Security deposits for renting apartments typically run anywhere from $250 to $1,000. 

Before you move out of your apartment, it is typical for your landlord or property manager to analyze the state of your apartment to determine any appropriate deductions from the deposit. While they cannot deduct money for everyday wear and tear around the apartment, they can legally deduct the cost of necessary repairs from your security deposit. If you keep your apartment in good condition, you should receive your money back within a couple months after moving out.

First Month’s Rent

In addition to the application fee and security deposit, most apartment complexes will require you to pay the first month of rent. This may be a large upfront cost for you so be sure to prepare and save beforehand.

Moving Costs

Moving costs are often overlooked and forgotten in the moving budget. Renting a truck or asking some friends to help you move are both affordable options for moving. But if you are planning on hiring a moving company to move your personal belongings, it can get expensive. Make sure to getting price quotes from a few different moving companies so that you can find the best option for you.

Parking Fees

When it comes to the parking situations and fees, it varies from rental to rental. If you live in an apartment with limited parking, this may be a fee that’s worth paying. Make sure to do your research beforehand; some parking spots simply add an additional cost to your monthly rent, while others come in the form of an annual payment.

Utility Fees

Utility fees will vary based on the building and the city; however, the majority of apartment complexes will offer at least one type of free utility, such as water, gas, and even Wi-Fi. Before signing a lease, make sure to check with the landlord about any utility fees, as these extra costs can quickly add up.

Pet Fees

If you plan to bring your pet with you to your new apartment, you can expect to pay a pet fee. Similar to your security deposit, you can expect to get this back at the end of your lease if there is no damage from your pet. While the price can vary, cat fees generally range between $150 and $300 and dog fees can run anywhere from $300 to $500.

Renters Insurance

Renters insurance is often required by landlords; however, even if your landlord does not require you to have renters insurance, it is always a good idea. Thankfully, renters insurance runs fairly cheap, around $15 to $20 per month, which is a small price to pay in the event that something happens to the property or your personal belongings. It will cover theft, water damage, certain natural disasters, bodily injuries, and more.