Be Aware of Hidden Costs for a First Time Renter

When you’ve found the apartment of your dreams, you’ll probably start by checking the price of rent against your budget. When the two line up, it looks like you’re all ready to sign the lease and move right in. This may seem cut and dried, but if you’re a first-time renter, there are a variety of extra expenses that you may not have taken into account. Before choosing an apartment, make sure you fully understand the cost of rent, utilities, fees, and other miscellaneous expenses that may put your rent out of your price range.

Steps

Estimating the Actual Cost of Rent

  1. Be aware of application fees. Rather than covering the costs of background and credit checks for potential tenants, most landlords will request a payment from you to offset these costs. In many cases, application fees are between ten and fifty dollars. If your future landlord requests an application fee higher than that, you should ask them to explain the cost and what it is used for before agreeing to pay it.[1]
  2. Factor in the security deposit. Before moving in, you will likely need to pay a fee that will be refunded if you complete all the necessary cleaning and maintenance prior to moving out. In some cases, this deposit is a few hundred dollars, but other landlords may require as much or more than an additional month’s rent. Many rental units will also require a larger deposit for those tenants who have children or pets.[2]
  3. Take utilities into account. Rental units are rarely all inclusive when it comes to heat, water, electricity, gas, sewage, trash removal, and other utilities. It’s important to get an exact list of any utilities covered by your complex. For instance, apartments may claim they are all inclusive, but they only cover the basic utilities like water and electricity, not things like internet and television services.[3]
  4. Request average utility costs. This will help you better understand the total amount of money you’ll need each month. Most apartment complexes have this information on hand for potential tenants. If they don’t provide this data, you can speak to utility providers directly. If your utilities are included in your lease, make sure that aren’t limitations set by your landlords or overage fees.
    • For instance, some rentals cover the cost of electricity but require an additional fee during summer months when the air conditioning unit is used.[3]
  5. Learn about seasonal expenses. Ask about things like snow removal and lawn maintenance before you sign a lease. These seasonal costs can add up if you’re not expecting them in your budget. If you’re renting a townhouse, duplex, or single-family home, you may be responsible for your own seasonal outdoor maintenance. Apartment complexes typically include this cost in your rent, but don’t assume this is the case. Always ask.[4]
  6. Estimate the cost of laundry. If you have a washer and dryer in your unit, you’ll need to pay for the water bill and clothes detergent. If an apartment complex has a communal laundry facility, you’ll likely need to pay to use these machines in addition to paying for your own detergents and other cleaning products. If there are no on-site laundry facilities, you’ll have to take your laundry to an off-site location where you’ll need to pay to use public machines. Each of these options is increasingly costly and time-consuming.[5]
  7. Include the cost of renter's insurance. Many leases require this coverage. Renter’s insurance typically costs between $20 and $50 a month, and can often be combined with other insurance policies for discounted coverage.[6]
  8. Ask about pet rent and deposits. This is one of the ways that many landlords offset the potential damage caused by pets. Our furry friends can be smelly and destructive, and the rental agreement may reflect your landlord’s concerns about renting to a pet owner. In most cases, after an initial deposit, pet rent is typically no more than $10 to $50 per pet each month. Cost varies dramatically based on the size and breed of your pet.
    • For instance, aggressive dog breeds often require your landlord to purchase additional insurance, and you are likely to be expected to cover that cost through higher than usual pet rent.[2]

Planning for Miscellaneous Expenses

  1. Estimate the cost of cleaning. It may seem like a minor expense, but keeping your apartment clean is important. Regular cleaning prevents damage, wear, and tear that could cost you increased maintenance fees or your security deposit at a later date. Depending on the size of your rental unit, you can spend between $15 and $100 on cleaning per month.
    • In many complexes, there is an additional fee for cleaning when you move out that can be several hundred dollars. Some complexes include this fee as a non-refundable deposit when you move in.[7]
  2. Consider the cost of maintenance. Are you responsible for replacing smoke detector batteries, unclogging toilets, and dealing with other minor home repairs? If so, you need to take all of that into account. Ask your landlord how they handle regular maintenance. Make sure you specifically ask about things like air filters for the heating and cooling system, light bulbs, and the availability maintenance assistance during emergencies.[5]
  3. Check for fees associated with moving out. This includes security deposits you paid when you moved in that may or may not be returned to you, depending on whether or not you have cleaned the apartment to your landlord’s specifications. Many apartment complexes ask that you have the carpets or other floors deep cleaned prior to moving out, and you may also need to repaint.
    • Ask for a checkout list when you move in so there are no surprises later on.[8]
  4. Factor in rent increases. Many landlords will raise rent after a remodel, at the end of your lease, or when they add amenities. Make sure to ask your landlord about any planned additions or refurbishments that may increase the cost of your rent. In most cases, you can’t avoid an annual rent increase, but if you don’t feel anything has significantly improved, you shouldn’t shy away from negotiating for a lower amount.
    • For instance, if your landlord requests a $100 a month increase at the end of your lease, you can say something like, “Can you offer me a lower fee for my continued loyalty since there haven’t been any major updates this year? I’d be willing to pay an extra $50 a month.”[9]

Including Payment for Additional Spaces

  1. Consider additional storage fees. Sometimes an apartment just isn’t enough space to hold all of your things. Some apartments have extra storage space that you can rent, or you may need to consider renting a storage facility. Regardless of where you find extra storage space, it’s important to consider these costs as part of your overall rental expenses.[1]
  2. Pay for vehicle parking. In some complexes, you’ll need to pay an additional fee to park your car. If you don’t own a car, this will obviously not be a concern, but if you do, ask about the complex’s parking policies. Some apartments only charge for covered or garage parking, but others will request a per car fee as part of your monthly rent.[1]
  3. Understand the costs of shared spaces. If your apartment complex has a pool, gym, dog park, or other amenities available for all occupants, you are likely paying to maintain these areas as part of your rent. Ask how much of your rent goes towards shared amenities. If you regularly go swimming, workout at the gym, or take your dog to the dog park, these expenses may be worthwhile for you. However, if you don’t think you’ll use these spaces, you may want to look for rental properties with fewer amenities.[5]

Related Articles

Sources and Citations

  1. ↑ 1.0 1.1 1.2 http://www.moneytalksnews.com/13-hidden-costs-renting-apartment/
  2. ↑ 2.0 2.1 https://www.trulia.com/blog/renter-rip-off-10-ways-to-fight-hidden-apartment-fees/
  3. ↑ 3.0 3.1 http://www.apartments.com/blog/utilities-who-s-responsible-for-paying-what
  4. ↑ http://www.apartmentshowcase.com/blog/tips/2015/08/budgeting-for-the-hidden-costs-of-renting-an-apartment
  5. ↑ 5.0 5.1 5.2 http://www.apartmentshowcase.com/blog/tips/2015/08/budgeting-for-the-hidden-costs-of-renting-an-apartment
  6. ↑ http://www.moneytalksnews.com/13-hidden-costs-renting-apartment/
  7. ↑ https://www.thumbtack.com/p/apartment-cleaning-prices
  8. ↑ http://www.moneytalksnews.com/13-hidden-costs-renting-apartment
  9. ↑ http://www.apartmenttherapy.com/8-ways-to-avoid-a-rent-increase-this-year-206098
Retrieved from "https://kipkis.com/index.php?title=Be_Aware_of_Hidden_Costs_for_a_First_Time_Renter&oldid=283757"