Move-in feesĪnd if you didn't think that was enough, a relatively new expense is move-in fees. Remember, a deposit is money you get back, a fee is money you don't. If you leave by the proper terms of your lease, fully paid, this fee should be returned to you. If you move out before your lease is up and you still owe your landlord rent, he or she can keep this fee. First and last months' rentĪdditionally, your landlord might require an added deposit equal to two months' rent, known as “first and last month." This covers your landlord in case you skip town without paying rent you're contractually bound to pay by your lease. In many big cities, security deposits are being phased out in favor of Deposit-Free Renting, which is essentially an agreement for you and your landlord to co-carry “apartment damage insurance" managed by a third-party company. Like application fees, many states have laws concerning security deposits you should research before you sign anything. If you haven't caused undue destruction, you'll get this money back when you move out. This fee is usually requested before you move in, and normally runs the equivalent of one or two months' rent. The security deposit is money you loan to your landlord to ensure you haven't caused any major damage or left the apartment in need of excessive cleaning and painting at the time you move out. Since a criminal background check must be submitted for every tenant in the unit, this cost can get expensive and your prospective landlord will most likely wish to transfer that expense on to you, whether you pass or not. Sometimes, this is included in your application fee but often it's not, because – as opposed to your credit and employment – it must be run for every person moving in, not just the leaseholder. It varies state to state, so be sure to research yours.īefore you're given the OK to move in, your future landlord will run a criminal background check. But to protect you, some states have limits on the amount a landlord can charge for the application. Additionally, application fees can also cover the landlord's administrative costs and time to gather all the reporting on you, verify your employment and rental history and track down your references.Īpplication fees are usually non-refundable, even if you are rejected. However, it usually covers your landlord's cost of running a financial history on you, such as your credit statement and any prior evictions that have been reported. The term application fee can mean almost anything, depending on what your potential landlord wants to charge for. When you find your perfect apartment, you'll be asked to pay an application fee in order to start the process of securing your new home. The most common fee you'll come across is probably the very first check you'll ever write to your landlord. Here's a rundown of everything you might be asked to pay well before your first rent comes due. For that, you'll need to backtrack a few weeks.īoth at the time of the application and the time you sign your lease, you'll be responsible for a number of apartment application fees and deposits. However, as you budget for that initial month in your new place, you should be aware your first rent check isn't the start of your new apartment expenses. Are you getting the best value and does it fit in your financial plan? But your primary focus is most often rent. When you're on your apartment hunt, you look at everything from the number of closets to water pressure strength.
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