Have you ever wondered about the fees of an apartment you are paying when you first move-in? Or what the purpose of these fees are?
One month’s rent is known as the minimum broker fee
A rental broker’s fee normally ranges from one month’s rent to 12 to 15 percent of the total year cost. Even though it hurts, a broker who works hard for you isn’t doing it for nothing.
Ask your agent, if you are using one, if a landlord has paid them any fees for finding tenants, and request that the landlord remove that sum from your broker fee. Additionally, keep in mind that the broker fee is a one-time cost and is not repeated if you extend your lease or add a roommate.
$20 is the maximum allowed by rent legislation.
The application cost for a rental was capped at $20 as a result of changes to the rent rules in 2019. The price of a background or credit check is covered by this fee, which is separate from the broker fee. The only fee a landlord may charge a tenant is this one. The law mandates that this charge must be waived if you submit up-to-date copies of a background or credit check.
…except if you are renting in a co-op or condo
For renting out their apartments, some co-op or condo boards charge an apartment owner a fee, which may include a higher application cost. The reason for this is that there will be restrictions on subletting under the co-proprietary op’s lease because the structure isn’t primarily intended for rental purposes. The costs might be based on the apartment’s share allocation, or they might be determined as a percentage of the monthly maintenance fees. The charge may also cover moving expenses, such as a morning’s worth of elevator use to install your furniture. These sublease fees may be passed on to the tenant by the owner.
3) Pet rent: Can be $50 to as much as $200 a month
You should not be required to pay more than a month’s security if you are moving into a pet-friendly apartment with your dog or cat. In order to avoid this, landlords frequently include the pet fee—which can range from $50 per month for a dog to $200—in the rent payment.
4) Guarantor fee: 65 to 85% of the rent for one month.
Rental opportunities for students, foreign nationals, and people without U.S. credit histories are becoming increasingly difficult to come by, according to leasing agents and brokers who have spoken with Brick Underground. In the past, they might have had to provide a bigger security deposit, but since that is no longer an option, owners will now require a guarantor—someone who agrees to uphold the lease if the renter is unable to—instead
5) Rental insurance fee: About $125 a year
Some buildings require renters to obtain renter’s insurance. When signing your lease, you will be required to bring the required documentation. Renter’s insurance is not expensive. It typically costs between $100 and $150 annually—but it is still an expense that you must factor into your budget.
6) Amenity charge: $500 to $1,000 per year
In newer, more upscale rental homes, tenants could anticipate paying for amenities. To have the base rent more reasonable, some management organizations, for instance, will segregate the charges of a gym. Amenity fees have been seen to range from $500 to $1,000 per year, with some charging $100 per month.
Depending on the building, amenity fees may be applied to the balance of all new tenants’ rent charges. Regardless of whether they choose to utilize the amenities the building provides, be charged monthly, upfront, or annually.
7) Move-in fee.
When you are bringing in your furniture on move-in day, the large residential rentals in the past might have levied a move-in fee or a cost to use the elevator. A move-in charge would only be acceptable if it was a fee paid to a co-op or condo board, according to the new rent legislation and a Department of State letter. Late rent fee: $50 or 5 percent of the monthly rent
Once your lease has started, you cannot be penalized for making a late payment unless you are five days overdue. If you are charged, the amount cannot exceed $50 or 5% of the monthly rent, whichever is smaller.
If you have more questions on any fees listed above, ask your agent or search online to find an answer.