When planning to rent an apartment, former government accountant and Money Talks News writer Allison Martin warns that the rate indicated in the listing may not be the only cost that you will be shouldering. She gives the following as the expenses commonly overlooked by renters:
1. Moving Fees
This includes packing of your materials, hiring a moving company, and purchasing what you will need in your new place. Some condo units also charge an additional $100 to $150 move-in fee per condo association rules.
2. Storage Rentals
According to Reader's Digest, it is common for tenants who have small apartments to also pay for storage space, which they fail to calculate as a part of their housing budget. Depending on the size, an average monthly cost of a climate-controlled storage unit is between $26 and $152.
3. Security Deposit
Some are refundable, while some are not and may be between $350 and $500. If it is refundable, make sure to inspect the place with the property manager and have its condition documented so as not to put your deposit at stake when you are ready to leave.
4. Application Fee
This covers administrative costs entailed in the qualification process, to include a background and credit check.
5. Parking Fee
On-site parking in a crowded lot may be free, but you may be charged if you prefer a reserved garage or covered space.
6. Laundry
If there is no room for a washer and dryer in the unit, then be ready to pay about $3 per load.
7. Renewal Fee
Unless you have a generous and considerate landlord, then expect an increase when it's time to renew your lease. Although you may "negotiate the exact increased rent in an 'option to renew for a second year's clause," said Douglas Elliman, a broker for Melanie Lazenby.
8. Renters Insurance
Some apartments mandate their tenants to carry a policy for an insurance where they will be compensated if their apartment's contents are damaged by circumstances beyond their control. It is far less expensive than homeowners insurance.
9. Amenities
If your complex has a gym, pool, conference room, sauna or any other desirable amenities, you may be charged with an access fee, even if you don't use them.
10. Maintenance Fee
Such include on-site trash pickup, frequent lawn care, and even pet fees if you will be bringing in pets.
12. Utilities
If you are not renting an all-inclusive apartment, then expect to be billed for the deposit and monthly fees for cable, internet, trash, water and sewer services.
13. Home Improvement Projects
Your expenses in painting, improving the floor and other improvements done to make the place liveable will all be a part of your cost. In some cases, the landlord may require you to transform or forfeit deposit money to bring the apartment back to its original, neutral décor.
14. Opportunity Costs
Reader's Digest explains that when you rent, you miss out on the opportunity of equity which can mean increasing your home's value.
15. Income Taxes
The income tax that you are paying as a renter is significantly higher than if you own a home where property taxes and mortgage interest could be deducted.
