Common Expenses to Note Before Signing a Rental Lease

Monthly rent prices continue to rise nationwide, making financial planning increasingly difficult for renters. Unfortunately, your monthly rent isn’t the only cost you must consider when moving into a rental. Living expenses, utilities, parking fees, and more must be calculated into the equation. That’s why we’re breaking down all the common expenses associated with leasing a rental so you can budget smarter! Learn what fees, deposits, and miscellaneous charges you can expect to pay as a renter:

‍

1. Application Fees

Application fees are non-refundable fees submitted along with your rental application. They’re collected by either your management company or landlord, who then uses the money to conduct credit and background checks and investigate your rental history to determine your eligibility as a renter. Application fees typically cost anywhere between $40 to $100. 

‍

2. Security Deposit 

Once your rental application is approved, you’ll be asked to submit a security deposit—a fee that signifies your intent to move into the rental. Additionally, since security deposits are commonly returned to the renter partially or in full at the end of your lease term, they’re an incentive to take care of your rental for the duration of your lease. Before you move out, your landlord will assess the condition of your rental; if they find any damage, the cost of repairs will be deducted from your security deposit and the rest will be returned to you after your move-out date. Security deposits are typically equivalent to the cost of one month’s rent but may be variable depending on the property qualification requirements. 

‍

3. First and Last Month’s Rent

Upon signing your lease, your landlord may ask you to pay the first and/or last month’s rent upfront. This ensures your landlord is covered in the event you fall behind or default on your rent payments. Tenant laws differ from state to state, so research if your area limits how much landlords can charge you upfront. Depending on these regulations, the first and last month’s rent payments are typically equivalent to the cost of one to two month’s rent. 

‍

4. Moving Costs

Aside from the fees associated with leasing and moving into a rental, the moving process will also come with various costs. You’ll want to save up for packing materials, storage spaces, truck rentals or moving services, any potential flights or road trips, and cash tips for anyone hired to help you with your move. Moving expenses vary depending on whether you do it yourself or hire professionals, but you should plan for anywhere between $400 to $3,000. If you plan on hiring movers, always do your research! Moving companies will offer different rates and insurance coverage will vary, so compare prices to ensure you get the best deal and budget accordingly. 

‍

5. Pet Fees

Many landlords require pet owners to pay an additional fee at the beginning of their lease term. These pet fees are not designed to defray any potential property damage caused by your pet, such as stains, scratches, holes, broken appliances, and flea infestations, and with such your security deposit could still be impacted by your pet's behaviors. The cost of pet fees can vary depending on the kind of animal you have, and sometimes these charges may even be tacked onto your monthly rent instead; if paid up front, they typically cost between $50 to $500.

‍

6. Utility Bills

In addition to rent, most single-family home rentals also require you to be responsible for your own utility usage. Utilities often include electricity, heating and cooling, cable and TV, internet and WiFi, trash removal, water, sewer, gas, etc. Check with your landlord which expenses you’ll be responsible for to create an accurate monthly budget. Utility bills typically cost between $150 to $250 per month. Some utility services also charge a start-of-service or installation fee. Inquire with your landlord or service provider about the cost of these fees to create a budget. 

‍

7. Renter’s Insurance

Renter’s insurance is a monthly fee that protects your personal belongings in the case of theft or damage, and it also covers you if a guest gets hurt on the premises of your rental. Some landlords will require you to purchase renter’s insurance before signing your lease, but even if your landlord doesn’t, it’s wise to consider the benefits. Renter’s insurance typically costs about $15 per month.

‍

8. Home Essentials

Congratulations! You’ve paid all the fees listed above, and you’re ready to move into your new rental. Now you just have to worry about paying for furniture, laundry, groceries, cleaning supplies, toiletries, decorations, and other miscellaneous expenses that come with being a renter. The cost of home essentials can seem daunting, and indeed, the initial expense for these supplies may be steep upon first moving in. But rest assured, the monthly cost of home essentials will decrease after you’re settled with the essentials. 

‍

First-time renters may be surprised to learn how many expenses come with leasing a rental property. However, with this breakdown of common rental costs, you’re prepared to budget for the future! 

‍

A Better Living Experience

At Bridge Homes, we believe everyone deserves a quality home. With thousands of new or renovated home rentals in desirable neighborhoods across the United States, our dedicated team ensures each property adheres to our standards of quality, cleanliness, and safety. We are proud to offer high-quality houses you'll love to call home. Explore our listings today to discover your dream home!

‍

‍

Sources:

7 First Apartment Expenses You Need in Your Budget

7 Renting Costs to Consider In Your Budget

9 Common Costs of Renting an Apartment

April 2024 Rent Report

The Most Common Fees to Expect When Renting an Apartment

‍