If you are looking to rent a home, a condo/townhome, or even an apartment; there are certain expenses that you need to be prepared for.
Here are 6 Common Expenses that you need to prepare for as a Renter.
- When you are applying to lease a property, an application fee will be charged to you by either the landlord or property management company. This fee varies from state to state, and may be a per adult fee. The application fee is usually an administrative fee to cover background and credit checks.
Pet Deposit Fee
- The pet deposit fee can vary depending on the size of the pet and how many pets you may have. It is important to keep in mind that in most instances this fee is non-refundable. Be sure to ask your REALTOR®/Real Estate Agent for clarification. This fee is usually collected for any pet damages that may occur during the lease.
- The Security deposit will usually be due at lease signing. This amount is usually the same as the monthly rent. However, this amount can also be higher depending on your credit worthiness. This deposit is collected and kept in reserves to address any property damages that may occur during the lease period. The security deposit is usually returned to the tenant after the Move-Out inspection by the landlord/property management company.
First Month’s Rent & Advance Prorated Rent
- Once your lease is signed, it is typical for you to have to pay your first month’s rent at signing. Keep in mind that if you are Moving-In a couple of days before the 1st of the month, you will be charged advance prorated rent for those days.
- In most cases, the landlord or property management company, will require that you purchase a renter’s insurance policy as part of your lease agreement. A renter’s insurance policy protects you, as the renter, in the event of burglary, fire, natural disaster, etc. This policy will protect all your personal items and belongings.
- Homeowners and Landlords usually carry homeowner’s insurance policies on their properties. However, this policy does not cover personal items for a tenant.
Real Estate Brokerage Fees
- If you hire a REALTOR®/Real Estate Agent to assist you with the rental and leasing of your future home, you will be discussing their brokerage fees. This fee is charged for their professional real estate services and their assistance in helping you find the right rental/lease to meet your needs.
- They will also be introducing to you the Tenant Brokerage Agreement. Read more about this agreement here.
Of course fees can vary by state. Be sure to seek the guidance of a Real Estate Professional in your area to guide you through the entire leasing process.
Do you have any questions or comments? Please let me know!