Whether you’re relocating to an apartment in Indianapolis, IN or searching for an apartment in Houston, TX, you may have to pay a move-in fee. Renter move-in fees are another upfront cost to consider when you’re looking for an apartment. A move-in fee is typically a non-refundable charge a tenant pays when moving into a new apartment. Landlords often use it to help cover basic maintenance projects like paint touch-ups, or upgrades like appliances.
You may be wondering: Are move-in fees legal? How much do they cost? What is a move-in fee vs a security deposit? What other move-in costs should I expect when renting an apartment or house? For answers to these questions and more, keep reading.
What is a move-in fee?
A move-in fee is a charge a landlord collects when you move into an apartment, and it’s typically non-refundable. Landlords often use it for minor apartment maintenance tasks like replacing locks and touching up paint. Move-in fees are different from security deposits, so you may be charged for both when you move into a new apartment.
Are move-in fees legal?
In many places, yes. Rules on move-in fees vary by state and city, and some places limit them while others don’t. If a move-in fee seems high, you can check your state and local laws or ask your local housing agency whether the charge is allowed.
Are move-in fees refundable?
Move-in fees are typically not refundable. Landlords often use them to cover maintenance and preparation costs before or during your tenancy, so the money generally isn’t returned at the end of your lease. Your lease should explain how each charge is treated, so confirm which ones are refundable before you sign.
How much does a move-in fee cost?
Move-in fees vary by landlord, property, and location, and there’s no single national standard. Some properties charge a flat amount, while others tie the fee to the monthly rent. Your lease or the property’s fee schedule should list the exact amount, so ask for it before you apply.
Move-in fees often face fewer rules than security deposits, but some areas do restrict them. Read up on the laws that affect your area to make sure any move-in fees you’re being charged are allowed.
What does a move-in fee cover?
Move-in fees may cover small upgrades that your property manager wants to make to your apartment. These upgrades can increase the value of the rental, and you may benefit from them too.
Some examples of projects a landlord may use a move-in fee for include:
- Replacing the locks in your apartment
- Reprogramming security systems
- Upgrading appliances or fixtures
- Polishing or replacing flooring or carpet
- Cosmetic touch-ups
If you’re curious where your move-in fee is going, you can always ask your landlord.
The difference between a move-in fee and a security deposit
There are a few major differences between move-in fees and security deposits. The primary difference is that security deposits tend to be more heavily regulated by state and local laws, so most regions have more rules about them. Below are more differences between the two.
Move-in fees
Move-in fees are typically non-refundable. Because they cover the cost of repairs or updates, your landlord will often spend the money before you move in or sometime during your lease.
Another difference is how the money is handled. Many states set rules for how landlords hold security deposits, and some require landlords to pay interest on them. Move-in fees may not be subject to the same rules, so ask how a property handles them.
Security deposits
Unlike move-in fees, security deposits are generally refundable. Your property manager can typically withdraw money from the deposit if you owe rent at the end of your lease, or if the unit needs repairs after you move out. Property managers usually do not spend security deposits until you move out, when they can see what work needs to be done before the unit is rented again.
Many states also set rules for when a deposit must be returned and when a landlord can keep part of it. Your landlord will typically provide a statement showing how any deducted amount was spent. For example, let’s say you put down an $800 security deposit. When you move out, your carpets need to be cleaned and a window screen needs to be replaced, which together cost $300. You would then get $500 of your $800 back, along with a statement showing how the other $300 was spent.
The benefits and drawbacks of a move-in fee
There are a few potential benefits to move-in fees:
- Predictability: You can see the exact amount before you sign.
- Updates: They may help your landlord make updates so the apartment is in better shape when you move in.
- Cost: Depending on the property, a move-in fee may be lower than a security deposit.
There are also downsides. A move-in fee is generally non-refundable, and it may not be capped by local laws, so the amount can be significant. Reading the lease and comparing fees across properties can help you weigh the cost.
The benefits and drawbacks of a security deposit
The first benefit of a security deposit is that it’s refundable. If you keep your apartment tidy and don’t cause damage, you may get most or all of it back when you move out. Second, security deposits are commonly regulated, so there may be limits on how much a landlord can charge.
The main drawback is that security deposits are often larger than move-in fees, and you won’t know how much you’ll get back until you move out. You may be surprised at the end of your lease if deductions leave you with less than you expected of your $800 deposit.
Can landlords impose both a move-in fee and a security deposit?
In many cases, a landlord will ask for both a move-in fee and a security deposit, which is common. Some places limit combined charges, so it’s worth checking local rules.
Sometimes a landlord will charge only one or the other. With short-term leases, a property manager may be more likely to charge only a move-in fee, since there may be less wear on the unit over a month or two. Alternatively, a landlord may require only a security deposit for a higher-cost or luxury apartment, where damage can be expensive to repair.
Can you negotiate a move-in fee?
Some landlords may be open to negotiating a move-in fee, although flexibility varies by property. If the fee is too high for your budget, you can ask whether it can be reduced, waived, or paid in installments. Comparing move-in fees at similar apartments nearby can also help you decide whether a charge is reasonable.
Other unanticipated costs and fees
There are many costs and fees that come with renting a new apartment. Outlined below are move-in costs you may have to pay, but not all landlords charge all of these fees. Fees and rules also vary by where you live, and costs in higher-priced markets may be higher.
Administrative fee
Landlords may charge an administrative fee when you apply for an apartment to cover the time spent processing your application. Sometimes administrative fees include the holding fee, and other times they’re charged separately. Amounts vary, and some states regulate them.
Rental application
Rental application fees cover the cost of processing your application, and they often include the cost of background and credit checks. Amounts vary by location, and some states and cities limit what landlords can charge. Because many renters apply to more than one property, these fees can add up.
Holding fee
If you want to make sure no one else gets the apartment you have your eye on, you may be able to pay a holding fee after you submit your application. Amounts vary by property, so ask whether the fee is refundable and how it’s applied.
First & last months’ rent
Property managers will sometimes ask for first and last months’ rent in addition to a security deposit when you move into a new apartment. This can give the landlord added protection in case of missed rent payments.
Pet deposits, pet fees & pet rent
Having a pet in an apartment can come with added costs. Pet deposits and pet rent are common in many markets, including cities like San Diego, CA. Here is how the three charges typically work:
- Pet deposit: Paid at the beginning of your lease and typically refundable if your pet doesn’t cause damage.
- Pet rent: Paid every month you have a pet in your apartment. It’s non-refundable because it’s part of your monthly rent.
- Pet fee: A one-time, non-refundable fee paid at the beginning of your lease.
Amounts vary by property, so check your lease for the exact charges.
Utilities
Unless utilities are included in your rent, you’ll pay for electricity, garbage, gas, sewer, and water usage. Utility costs vary by location, season, and building, so ask the property manager what’s included and what typical bills look like.
Storage
If your apartment building offers storage, you may have to pay extra to use it. Pricing varies, and shared storage in a building may differ from a separate storage facility in size and climate control.
Parking
Many apartment buildings offer covered or garage parking, which often costs extra. Prices vary by location and building, and costs tend to be higher in dense urban areas, even for tandem parking. Some properties include parking in the rent, so it’s worth asking.
How to compare apartments by total cost at signing
Because upfront charges differ from one property to the next, two apartments with the same rent can cost very different amounts to move into. Colton Hibbert, founder and CEO of Find My Place, recommends starting with a different number:
“The first number to ask a landlord for isn’t the monthly rent. It’s the total due at signing. Application fees, admin fees, move-in fees, and a security deposit can easily add up to more than a month’s rent before you get your keys, and first-time renters tend to feel that the most. Ask for an itemized list of every upfront charge, including which ones are refundable, and compare apartments by that total instead of the monthly price. If a building advertises a move-in special, read the fine print, because a waived fee sometimes comes back as higher rent or a non-refundable “amenity” charge.”
To put this advice into practice, you can:
- Ask for an itemized list of every charge due before move-in, including the amount and purpose of each
- Confirm which charges are refundable and get the answer in writing
- Add up the total upfront cost for each apartment and compare it alongside monthly rent
- Review the lease for red flags before you sign
The bottom line on renter move-in fees
Renter move-in fees are just one of many payments you may make when you move into a new apartment. They can help fund improvements to the unit, although they are typically non-refundable.
When you begin your apartment search, ask your prospective property manager for an itemized list of every charge due at signing so you can make sure you’re staying within your budget. If a charge is a stretch, it can be worth asking whether it can be reduced or spread out over time. To see what fits, try Redfin’s rent affordability tool or browse rentals on Redfin.
FAQs on renter move in fees
1. Are move-in fees refundable?
Move-in fees are typically non-refundable, but your lease sets the terms. Security deposits are the charge that may be returned, in whole or in part. Ask the landlord to mark each charge as refundable or non-refundable in writing.
2. What is the difference between a move-in fee and a security deposit?
A move-in fee is generally a one-time charge the landlord keeps, often to cover preparation or administrative costs. A security deposit is held against unpaid rent or damage and may be returned after you move out. Many landlords charge both.
3. Are move-in fees legal?
In many places they are, but some states and cities limit or regulate upfront costs. Check your state or local housing agency for the rules that apply where you’re renting. If a charge seems unusual, you can also ask the landlord which part of the lease covers it.
4. Can I pay move-in fees in installments?
It depends on the landlord and the location. Some landlords may be willing to spread out charges if you ask, so it’s worth raising before you sign. Get any agreed arrangement in writing.
5. What should I ask before signing a lease?
Ask for an itemized list of every charge due at signing, which ones are refundable, and what each fee covers. Also ask whether any move-in specials affect your monthly rent or add other charges. Then confirm that everything matches your lease.
The post Everything You Need to Know About Move-In Fees appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.