When renting an apartment in Boston, you can expect to pay four main move-in payments. These include the first month's rent, last month's rent, security deposit, and broker fee. Additionally, some property managers may charge an application fee and a key deposit, which is refundable when you move out along with the security deposit. Let's take a closer look at each of these payments and what they mean for students.
First Month's Rent
First month's rent is charged immediately upon approval of the apartment and before the lease is shared. Once the payment is made, the lease is shared with you for signature.
There are some landlords who may ask for one month's rent at the time of application itself. This is a method to gauge the seriousness of the applicant. Asking for a deposit upfront shows that the applicant is serious about renting the apartment and has the financial means to do so.
Landlords typically do this when there is a high demand. It can also help weed out applicants who are not serious about renting, as they may be less likely to provide the deposit.
Last Month's Rent
Last month's rent, key deposit, security deposit, and broker fee are paid after lease signing. This timing is typically decided by the property management or landlord, but it's usually between 2-5 weeks from lease signing, depending on when your move-in date is.
Why is last month's rent taken upfront? Essentially, landlords require last month's rent as a form of security to protect themselves against tenants who might skip out on their final month's rent. This payment is essentially "held" by the landlord until the tenant moves out.
Security Deposit
The security deposit is also taken upfront but is refundable. It's important to note that the security deposit is intended to cover any damages beyond normal wear and tear that might be incurred during the tenant's stay.
If there are no major damages present, the security deposit will be refunded in full when you move out.
Important to note that in Massachusetts, landlords are limited to collecting a security deposit of no more than one month's rent. So, even if they ask for a deposit upfront, they can't collect more than that amount.
Broker Fee
The broker fee is a one-time fee paid to the real estate agent who helps you find an apartment. This fee is typically equivalent to one month's rent, but can vary depending on the property management company and the rental market in Boston.
It is important to note that this fee is often split between the agent helping you, the renter, and the listing agency or property management handling the property.
In most cases, the landlord pays nothing towards the broker fee. It's important to note that if you found the apartment through a "no fee" listing, you won't have to pay a broker fee.
Application Fee
Finally, there may be an application fee charged by some managements, which is paid at the time of applying and is non-refundable, even if you are rejected for the apartment.
This fee covers the cost of background and credit checks, as well as other administrative costs.
Paying Rent Upfront
It's also worth noting that paying rent upfront means no rent is due during the months paid for in advance. This can be helpful for students who want to budget and plan their finances accordingly.
Competitive Boston Rental Market
It is important to remember that Boston is a very competitive rental market, and prices are often driven up by high demand.
Negotiation of prices is not usually possible, so it is important to be prepared for the move-in payments and understand why they are necessary.