It’s a pretty safe bet that you know how much you’ll pay in monthly rent when you sign a lease. But you should also know about any moving in fees.
Renting is about more than paying, well, rent. In addition to the rent, security deposit, utility start-up fees and so on, most tenants should expect to pay moving in fees (it’s not required by the industry, but most places do it). Although it may seem like nickel-and-diming at its finest, moving in fees serve a vital purpose. Understanding those takes some of the sting out of having to fork over even more of your hard-earned cash.
What are moving in fees?
Simply put, a moving in fee covers the cost of any mild refurbishing or maintenance that needs to happen before you move in. For example, if the walls are dingy and scuffed, management may opt to slap a new coat of paint on them. Often, they have to supply a new key/key fob/key card when you move in, so the fee covers things like that, as well. Here are some examples of line items that they cover:
- Patching holes
- Paint
- Keys (unit, gate and mailbox)
- New appliances, if needed
- Move-out cleaning from the previous tenant
- Carpet cleaning
- Wear and tear-related repairs
- Reprogramming security systems
Basically, the move-in fee gets the place ready for you to — wait for it — move in. That’s always a good thing because no one likes living in a previous tenant’s filth, right? Obviously, they won’t totally cover everything if big-ticket items need work, like new carpet or appliances. Management will have to cover any difference there, but it’s OK because they expect to do larger overhauls from time to time, so they budget for it.
The good news is that they’re less than the security deposit by a long shot. The bad news is you still have to pay them.
The difference between moving in fees and security deposits
A lot of people get upset because they think that moving in fees and security deposits are one and the same, however, this is not the case. Security deposits are also collected upfront, often at the time you sign the lease, but that’s where the similarity to moving in fees stops.
The purpose of a security deposit is to cover the landlord or property manager if something goes awry during the tenancy. A renter who throws a bowling ball at a wall or lets a dog chew up a bathroom door probably won’t get their deposit back because the landlord will have to fix it before someone else can move in. It’s also a measure to cover management in case the tenant fails to pay rent at some point. That way, they recoup at least some of the loss.
Most management companies charge a flat fee for the security deposit. Whether you get some or all of your security deposit back is usually determined at the move-out inspection. If you didn’t do any significant damage beyond normal wear and tear and managed to pay your bills on time, the landlord or property manager will put the security deposit back in your account shortly. Just in time to put it toward another deposit at a different location, but that’s another issue altogether.
In stark contrast, move-in fees are not refundable. The money was spent on services before you moved in so that the unit would be ready for occupancy. It’s pretty hard to unpaint walls, you know?
How much do moving in fees cost?
Good news first — move-in fees are a lot less than the security deposit, which is usually one or two months’ worth of rent. Unfortunately, moving in fees are still a significant chunk of change. The landlord/property manager determines the amount because move-in fees are not regulated by any governing entities.
Management can also choose to handle them in a couple of different ways. When you’re shopping around for a new place to live, be sure to ask if the move-in fee is a flat amount, or if it’s a percentage of the monthly rent. Don’t hesitate to ask about any move-in fees, if the leasing agent doesn’t bring it up. No one likes a surprise bill like that!
If the moving in fee is a percentage of the monthly rent it’ll probably be between 30 and 50 percent. So, if your monthly rent is $1,000, expect to pay somewhere between $300 and $500 in move-in fees. The more desirable and swank your apartment is, the more you can expect to pay.
Moving in fees are here to stay
Moving in fees are a cumbersome expense, but property management companies won’t abandon them anytime soon. Find out your amount and make sure it fits into your all-important budget before signing any paperwork. Don’t think of it as money lost, either. After all, you’re getting a nice, clean unit for your trouble and that’s worth a lot. Double down on the investment and keep it spic and span!
Source: rent.com