How to Understand Rental Terminology
The most important thing you’ll need to do before getting your first apartment is put together a budget. Take a look at how much cash you have coming in each month, and then determine what percentage of that will go towards utilities (check with your potential landlord, depending on the building policies, specific utilities may or may not be included in your rent), how much you’re going to need for your cell, cable, internet, entertainment, food, clothing and personal items and then, from what’s left over, you’ll be able to determine how much you’ll be able to pay in rent. In order to help you better understand how to manage your monthly rent costs, the following tips, tricks and explanations may simplify the renting process.
There are more costs to renting than just the rent!
What’s the difference between a fee and a deposit? Why pay “last month’s rent” before you even move in? It seems that every landlord and property manager can have different financial requirements in addition to the monthly rent. And when you’re getting ready to get your first place, all these things can be quite confusing.
Most importantly, there is a difference between a fee and a deposit. A fee is nonrefundable. Once you pay a fee, you won’t see it again. Depending on your building, you may be assessed a monthly parking fee. Additional fees also may be charged for using an onsite computer service or using the workout area or pool. If you find yourself locked out of your apartment and need the building management to let you in or if you need to have non-standard maintenance help in your apartment (i.e. changing a light bulb, hanging a picture) additional service fees may be added to your monthly rent. Late payment fees and late check fees are typically standard, but other fees, like the ones above, may differ from building to building. When you’re looking at your potential new apartment, make sure you ask if there are any fees associated with any of the amenities offered by the building.
A deposit is refundable. In most cases, deposits are refunded only after you have moved out. Security deposits are the most common deposit required.
The line between a fee and a deposit can be blurred. Sometimes a landlord will request a $200 fee, half refundable. If you see this, first ask what the fees are for and then know that you may only get back half.
Fees and deposits vary widely across the nation and change with each city. Often, in an effort to rent more apartments, building management may offer move in specials where deposits and/or fees may be waived. Keep your eyes peeled for this type of offer as it will save you a good chunk of change.
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