How to Understand Rental Terminology
Below are some of the most common fees and deposits that a renter will encounter:
Application Fee - often the first thing you pay, used to process your application and run a credit check.
Administrative Fee - sometimes paid in addition to an application fee, used for other expenses related to leasing to a new tenant.
Redecorating Fee - covers the cost of new paint, carpet cleaning, and possibly door lock replacement to make an apartment ready for a new tenant.
Pet Fee/Deposit/Rent - these charges can vary greatly. Fees are paid up-front, sometimes every year. Deposits are refundable if your pet has done no damage to the apartment, but often carpet stains can be unavoidable - make sure to get a list of possible charges when you move in. Some apartments will add pet rent to your monthly rent. Be sure to factor that into your budget.
Hold Deposit - this is required to reserve an apartment for the time period before you actually sign the lease. Often this amount is applied to your security deposit once you do sign the lease. If you change your mind and decide not to sign a lease, this money could be forfeited.
Security Deposit - refundable, paid at move-in or lease signing. Like a pet deposit, deductions can be taken for any damage to the apartment found after you move out. When you move out, if the apartment is in the same condition as it was when you first rented it, you will probably get this deposit back. Again, make sure to ask what items in the apartment are covered under the security deposit. Management may also request an additional deposit on particular items within the apartment (a carpet deposit may be an example of this type of cost).
**Important to note - you might be entitled to interest earned on your security deposit during the time that it is being held by your Property Manager. Be sure to look for more information about this in your lease or contact a renter’s organization in your area.
Last Month’s Rent - essentially a security deposit, it is equal to one month’s rent and is paid at move in.
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