Whether this is your first rental or your tenth rental, preparing financially for your new home makes renting an apartment a pleasant experience. Expenses have a way of sneaking up on your budget. Take a few moments to consider potential expenses so that you have time to budget and save for your moving-related costs.
1. Application Fees
When you submit your apartment rental application, be prepared to pay an application fee. Your potential landlord will complete a credit check and background check to determine whether you have the potential to be a good renter; the fee covers the associated costs.
Though this fee is generally inexpensive, ranging from $25 to $35 on average, multiple application fees quickly add up to a significant cost if you are applying for multiple apartments.
2. Deposits
Most prospective renters know that a deposit is required to rent an apartment. However, how the deposit is calculated varies dramatically. Some rental agencies may require the first month's rent and the last month's rent as your deposit. If your rent is $750 a month, this is a whopping $1,500.
Others may only require the first month's rent or a designated sum. Take the time to read your lease so that your wallet knows what to expect.
In addition to the apartment deposit, be prepared to pay utility deposits, especially if you have a poor credit history or poor payment record with the utility company. Some utility companies enable you to bypass the deposit by having credit-worthy cosigner on your account.
3. Pet Fees
Your deep love for Fido or Kitty comes at a cost, as many property managers charge some type of pet fee. This may come in the in the form of an additional deposit, an extra amount due each month, or both. Some property owners charge a fee for each pet that you have.
Though this does not decrease your costs now, you can look for units that offer refundable pet fees so that you may be eligible to get a portion of your money back.
4. Renter's Insurance
When your expenses are snowballing, it is tempting to pass up renter's insurance. Without renter's insurance, your belongings are left unprotected from theft or damage. Even if you don't think you have anything of value, the cost to replace clothes, furniture, and basic electronics quickly adds up.
On average, renter's insurance costs $144 a year for $30,000 of property coverage and $100,000 in liability coverage. The liability coverage covers potential harm to people that you have in your apartment that is caused by your negligence.
When you move to a new apartment home, you start a new chapter in your life. Don't start this chapter broke and penniless. By getting an accurate estimate of your rental costs, you are able to start this new chapter on firm financial footing. Click here for more information on apartment homes for rent.
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