What You Must Pay Before You Sign a Lease
By Ron Leshnower. Apartment Living/Rental Expert
You'll probably have to pay some money in the form of fees or deposits during your apartment search. Here's a description of the payment items you might expect to encounter even before you sign a lease for a rental.
Common Payment Items Before Lease Signing
- Application fee. Many landlords charge an application fee to apartment hunters who decide they're serious about securing a rental in their building. The fee is meant to cover the cost of checking your background, such as your credit score, criminal record, and rental history.
Before paying this fee, ask if it's refundable if you don't get approved. Also, if you do get approved and sign a lease, find out whether the landlord will agree to apply the fee toward your security deposit .
A landlord's application fee should reflect the actual costs of running a background check, and not function as a profitable side business. If an application fee is outrageous, it may be illegal and it's a sign you should avoid dealing with the landlord who's charging it. A reasonable application fee is generally in the range of $30-$60.
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- Application deposit. Not to be confused with an application fee, an application deposit (also known as a "holding deposit") is money you might pay a landlord to take an apartment off the market temporarily to have held for you while your application is pending.
- Finder's fee. Some landlords charge this questionable fee, also known as a "move-in fee," which essentially rewards landlords for leasing an apartment to you. The only person you should possibly pay any money to in connection with finding an apartment for you is a broker. So, even if a finder's fee is legal, it's something you should try to avoid. After all, you're not charging the landlord a fee for helping him find a good tenant for his vacancy, are you?