Finally finding a place to rent is definitely a reason to celebrate. All your hard work searching for a place is over, but before you begin packing for the big move, there are a few expenses you’ll need to take care of first. Unfortunately, signing a lease for a new rental can be costly – as much as four times more than your usual monthly rent, if not more. Below, we’ve made a list of the things you’ll likely be responsible for paying when you sign your lease.
Many landlords require new tenants to pay their first and last month’s rent at lease signing. While this seems like a lot of money, think of it this way:By paying the first and last month’s rent when you sign the lease, you’ve already paid 1/6
th of your rent for a one-year lease. You’ll only be responsible for paying the rest of the months as they come due.
Responsible landlords require new renters to pay a security deposit before moving in. This amount is usually equal to one- or two month’s rent. Some states require landlords to keep tenants’ security deposits in interest-bearing accounts, so you can expect to receive your deposit plus interest back when you move out, providing you’ve caused no damage beyond normal wear and tear.
Some people use a broker to find places to rent. If you did, you’ll need to pay the broker once he or she finds you a place and you’ve signed the lease. The broker fee varies, so be sure you understand what you’ll be expected to pay before signing on the dotted line.
Whether you hire professional movers, rent a U-Haul, or take a few helpful friends out to dinner for the use of their truck, you’ll incur moving costs of some sort. Be sure to allow for this in your moving budget.
Your new rental may not be big enough to house all your belongings, in which case, renting a storage unit is an option. Off-site storage facilities usually charge by the month, and the cost usually depends on the size of the unit you rent.
Sometimes, landlords allow tenants to have a small pet in their rental. This often comes at a price, however, as the pet may cause damage to the rental that you are responsible for. Your landlord may charge an additional security deposit or an additional monthly fee for the pet. Renting a new place is an exciting time, for sure. It’s also an expensive time as there are fees, charges, and deposits required at or around the signing of the lease. The above items are some of the most common costs associated with leasing a rental.
