Make sure you are financially prepared when renting an apartment. In addition to your monthly rent, you need to have some cash for a few expenses that may come along with renting an apartment. Here are a few hidden costs of renting.
Application Fees and Security Deposits
Besides apartment renting costs, many properties request a non-refundable application fee, which is used to perform background checks on renters. Each applicant must pay a separate fee, and this applies to pets too.
If your application is accepted, you need to pay a security deposit, which is typically one month’s rent. It must be paid when you sign the lease and is fully refundable when you vacate the property. If you have a pet, there might be a separate pet deposit.
The security deposit acts as collateral in case there is property damage, or you are unable to make rent when moving out. You can get a full refund if you maintain the property well.
Renters Insurance Plan
When negotiating your lease, understand the cost of renters insurance. This covers personal property theft in case of a burglary, lawsuits if someone is injured in your home and additional living cost (ALC) expenses. Premiums vary based on the type of neighborhood, and factors like if you have a pet and young children.
Moving Day Costs
If you’re looking to hire a professional mover or a moving truck, shop around for the best quotes. Professional movers also offer insurance coverage to safeguard against breakages during transit. If you’re driving all your stuff yourself or riding with a friend, have cash ready for gas and food on moving day.
Monthly Utility Bills
Make a list of all your monthly utilities like electricity, internet, cable, water, trash pick-up, and budget for every month. Understanding these expenses will ensure you never fall short of money.
Watch out for these hidden costs when renting an apartment. If you need assistance with your homeowners and renters insurance, contact the experts at Mike Leonard Insurance Agency in Texas. We can help you get the right coverage from one of our many carriers, including Kemper, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance.