Understand the Costs of Renting

The landlord may charge a fee to review your application, perform credit and criminal background checks, and verify income and employment. In most cases, this fee is nonrefundable, even if your application is denied — which means these fees could add up quickly if you apply to multiple properties.

Some properties charge a fee for moving in, which covers expenses like elevator or loading dock reservations, changing the locks, and making new keys.

If you have a pet, some properties charge an extra fee or deposit up front. You may also be charged an additional monthly amount (i.e., “pet rent”).

If the property is part of a homeowners association (HOA) or has shared facilities like a gym or pool, you may be charged a one-time or monthly amenity fee.

There may be a one-time fee to connect your unit to water, electricity, or gas upon move in.

Other than your first rent payment, the largest up-front cost is usually a security deposit. Before moving in, you may pay one to two months’ rent to the landlord. They can use this money after you move out to restore the apartment to its original condition including cleaning and repairing any damage above ordinary wear and tear. In some cases, the security deposit can be applied to unpaid rent and fees. If you pay your rent and fees and take care of the home, you could get some or all of your deposit back when you move out.

Although this money isn’t paid to the rental property, it’s important not to forget about the cost of moving your belongings into your new place. This might include hiring movers, renting a truck, and buying boxes and packing supplies.

Be prepared to pay for electricity, gas, trash, water, internet, and other utilities not included in the monthly rent payment.

In some places, parking a vehicle can be a significant expense.

Some properties require you to pay rent using a property management system that charges an extra fee to make electronic payments. This can sometimes be avoided by paying in cash or check.

Some properties may require you to have insurance that covers your personal belongings in case of theft, fire, or disaster. You can shop around for the best rate and policy to meet your needs.

In some cases, you may need to pay a service charge to have specialized maintenance that falls outside normal repairs. When you’re exploring rentals, confirm the properties’ policies before signing the lease agreement.

If your lease term ends and you want to stay, you’ll need to sign a new lease, which may have a higher rent payment. You’ll need to determine if you can afford the new cost. Keep this in mind if you choose to rent a property near the top of your budget.