Leasing an apartment is often perceived as a more affordable housing option, particularly for young adults who may not be ready yet to settle into homeownership. During my move, I connected with end-of-lease cleaners who assisted with tidying up my apartment. The thrill of independence that comes with living alone for the first time in an apartment might be enticing, but it comes with unexpected financial responsibilities. To cushion unforeseen costs, establishing an emergency savings fund is crucial, whether you’re renting or buying a place.
Understanding your potential expenses, particularly those linked to your living conditions, can prove invaluable. Should you consider leasing an apartment soon, you must prepare for the following seven unexpected expenses.
1. APPLICATION AND ADMINISTRATION FEES
Before deciding on your favorite apartment, it’s likely you’ll inspect several options and submit applications for each. These applications usually are not free, with costs per adult ranging from $20-$75. This fee typically covers basic examinations like a background check. To avoid extra costs, you may want to cut down your choices and apply only for your top selection, particularly given that these fees are usually non-refundable.
2. INCREASED SECURITY DEPOSIT
Following the approval of your apartment, the next stage involves deciding on securing the place and setting a moving date. Usually, this requires a down payment in the form of a security deposit along with signing the lease. However, this deposit can vary, depending on rental price and your credit history. In particular, landlords may increase the deposit if your credit rating or previous rental records indicate any potential risk.
3. MOVING COSTS
When considering moving expenses, hiring a truck for transportation or help with moving should be taken into account. Moving fees can add up quickly, especially if you are relocating over a long distance or even to another state.
4. STORAGE AND GARAGE LEASING
Apartments may provide onsite storage and garage units available for rent at an added cost, which if not budgeted for, could heighten your overall living costs.
5. RENTER’S INSURANCE
While an extra cost, renters’ insurance is crucial as it offers protection to your possessions in case of unexpected calamities such as fire or floods. For around $20 per month, it provides you with financial protection, and some apartments might even require proof of insurance prior to moving in.
6. PET FEES
If you own a pet and your apartment allows pets, be prepared to pay a pet deposit. Landlords generally view pets as an additional liability, and, as such, often require a deposit ranging between $250-$350.
7. INCREASED RENT
Lastly, landlords have the right to raise rents each time a new lease is signed or when you opt to prolong a month-to-month lease.
Conclusively, it’s crucial to prepare for unpredicted expenses by saving as much as possible. Renting might seem cost-effective on the surface, but hidden expenses could result in higher costs than anticipated. It’s essential to weigh the pros and cons thoroughly and decide on the best course of action for your circumstances. Are there any surprising costs you’ve come across while renting? What were the charges that caught you off guard?
