Renting an apartment often comes across as a cheaper substitute for housing, particularly for young adults who aren’t prepared to commit to homeownership. Furthermore, moving out is thrilling and securing your first rental adds to that exhilaration.
However, you shouldn’t get so excited that you overlook the rental costs. Therefore, before signing the lease, ensure you consider these hidden costs to avoid surprises.
1. Renters Insurance
On average, the renter’s insurance costs $15-$20 monthly for a basic policy. Bear in mind that some insurers expect you to pay a year’s coverage in advance, so you’ll have to budget accordingly. Remember, the rates can vary depending on your neighborhood.
Therefore, when moving out of state or to a new community, you might not recognize the total insurance cost until you identify your address. It’s also possible to save on this cost because some landlords and apartment companies don’t need renter’s insurance.
It’s important you read the rental contract in detail and verify with the landlord to ensure you know the resident requirements. You should also beware that if damage to your belongings or damage occurs, you’ll be responsible for the costs.
2. Security Deposit
You shouldn’t overlook this kind of expense otherwise you might lose it. A security deposit is the amount of money a landlord takes from a renter besides the advanced rental payment. In addition to being a financial obligation, it secures the rental’s owner in case the renter breaches the stated terms in the rental agreement.
It may also act as compensation for cleaning, property damage, or key replacement. In the event that you paid a refundable deposit, ensure you’ve inspected the property and premises thoroughly along with the manager.
It’s important you take note of its condition as much as possible before you move in. This way, you’ll obtain it back when you’re ready to leave the place. Nevertheless, this extra cost might be avoidable if you negotiate with the landlord before signing the rental agreement.
3. Garage and Storage Rentals
Some complexes have garage and storage units on-site that you can rent at an extra cost. Depending on your residential area, having a garage for your vehicle can be a great advantage if the area experiences harsh winters.
Some complexes may even provide covered parking. If your selected rental isn’t spacious enough for your belongings, you might need to obtain extra storage facilities. Beware that it comes with rental charges that you don’t typically recognize upfront, so you should watch for them.
It’s advisable you have extra money with you in case you require it. In the event that the storage rentals are too costly for your budget, you have the choice to obtain self-storage. A self-storage is a kind of service that permits you to rent storage space like lockers, containers, and rooms for a monthly fee.
The cost will depend on your location and storage size. Therefore, you’re likely to pay a lesser fee if the storage space is smaller.
4. Trash Service
Not every apartment community offers trash service, but if it does, you can anticipate paying as much as $30 monthly or more. Trash services are typically offered to the entire community, so you probably won’t be able to negotiate the fee with the landlord.
Final Thoughts
If you’re planning to move to a new rental, you would better set some extra cash aside. Remember, moving can be costly, particularly if you’re caught unaware of some of these overlooked costs of renting.