Move-In Fees: Everything You Need to Know as a Landlord

As a landlord, you have a lot of costs to cover. From maintenance to repairs to additional property ownership expenses, costs can feel like they add up quickly. Luckily, tenants are there to help cover these costs in the form of move-in fees.

Move-in fees are much like security deposits in that they are due before the move-in date.

However, there are crucial differences you need to be aware of when determining what fees your tenants will pay.

In this guide, we’re going to take a deep dive into the ins and outs of move-in fees, how much to charge, and how these fees differ from security deposits.

What is a Move-In Fee?

Move-in fees are non-refundable fees that a tenant must pay to their landlord prior to the move-in date. These fees help cover certain expenses associated with managing the rental property, such as changing the locks on the doors for a new tenant or covering any necessary repairs.

When handling move-in fees, there are fewer laws landlords need to abide by compared to security deposits. In addition, move-in charges are easier for the landlord to manage because they do not need to be kept in an interest-bearing account or returned once the tenant moves out.

Move-In Fees vs. Security Deposits

The security deposit is used to pay for any damages occurring during a tenant's residency, while a move-in fee covers any necessary repairs before moving in. Here are a few other differences between move-in fees and security deposits.

Cost

Move-in fees often range from 30% to 50% of one month's rent. You may also be able to negotiate them down. Alternatively, security deposits tend to be set in stone and are the equivalent of one month's rent.

Rules and Regulations

While move-in fees aren't regulated, local and federal laws regulate security deposits.For example, in California, a landlord must return a tenants security deposit within 21 days.

Payback Policies

One of the most appealing aspects of a move-in fee for landlords is that it is non-refundable. Security deposits, however, are if the tenant has abided by the rules outlined in the rental agreement.

How Much Do Move-In Fees Cost?

A move-in fee can range depending on the landlord or property management company. However, typical move-in fees are often between 20% to 50% of one month's rent.

What's Included in Move-In Fees?

Move-in fees will cover any repairs required before a tenant moves into a new apartment. For better insight, here are the typical charges included in a renter’s move in fee.

Criminal Background Checks

There is a charge associated with conducting a criminal background check. Ultimately, this charge is passed down to renters by landlords via a move-in fee.

Application Fees

Application fees pay for the time it takes to research an applicant. The fee can be included in the move-in fee.

First and Last Month's Rent

Apart from the move-in fee, renters typically must pay the first and last month's rent before receiving their keys to their new apartment. Landlords do this so tenants don’t decide to skip out without paying their last month’s rent and to give themselves a buffer if you break your lease.

Pet Deposits

Any additional applicable fees, such as a pet deposit, will also be due before moving in.

Hook-Up Fees

Most properties already have running utilities, but new hook-ups sometimes come with a charge. If so, you can pass these costs on to your renter in the form of move-in fees.

Final Thoughts

As a landlord, it's essential to know all the potential fees your renters may be due before moving in. Security deposits are one of many options. So, before you get a new renter on your property, make sure you determine a move-in fee that makes sense for you. Then, get started listing with Apartment List today!