Renting your first space can feel like an exciting step toward independence. You can decorate your home and have your own rules. But before you pick out your new home, there are several costs to be aware of. Here are the costs involved in renting a house.
The first expense most renters encounter is the security deposit. This acts as an insurance policy for your landlord and typically equals one or two months’ rent. When you move out, the landlord will return this to you minus any necessary deductions for damage or unpaid rent.
First Month’s Rent
Another hidden initial cost in renting a house is the first month’s rent, due before move-in. Be prepared to pay the security deposit and first month’s rent upfront. This will help you get into the routine of paying rent and take a weight off your shoulders when purchasing furniture and other items upon move-in.
Application Fee and Credit Check
Most landlords and property managers require potential tenants to submit an application, which often comes with a fee of around 20 to 50 dollars. On top of the application, your property manager will likely conduct a credit check to ensure potential tenants are financially responsible. We recommend working on your credit before applying for an apartment or multi-family property. This way, you can potentially lower your deposit expense.
Most landlords require their tenants to have renter’s insurance to protect both the policyholder and the landlord in case of incidents like theft or property damage. Insurance requirements vary by location and landlord, so discussing this upfront is essential.
Maintenance and Repairs
You may be responsible for some maintenance and repair costs when renting a house. You’ll want to clarify with your landlord what they’ll cover and what falls under your responsibility. Examples include lawn care, pest control, and appliance maintenance or repairs.
Renting a house is exciting, but knowing the costs is necessary. By understanding the potential costs of renting a home, you can evaluate potential rental properties with your eyes wide open. Take the time to find the perfect fit for your budget and enjoy the journey of creating memories in your new home.