Renting an apartment involves a long list of tasks and fees, from application fees to move-in fees and security deposits. Among these charges, administration fees can be a bit unclear. It’s important to understand what these fees cover and how they differ from other fees, as well as be aware of local landlord-tenant laws to know your rights as a tenant.
This article will address common questions about administration fees and provide clarity on the subject. Whether you’re renting a two-bedroom apartment in Louisville, KY, or a studio in Seattle, understanding these fees is essential.
What is an administration fee for an apartment?
Landlords charge administration fees to cover the time and effort spent processing applications and holding the apartment for potential tenants. This fee is typically non-refundable if the application is approved, but may be refunded if the application is denied, minus any credit and background check charges.
How is the administration fee different from a move-in fee or a security deposit?
The administration fee covers the processing of applications and holding the apartment, while the move-in fee is for pre-move-in maintenance and touch-ups. The security deposit, on the other hand, is for covering damages beyond normal wear and tear during the tenancy.
Administration fee
This fee pays for processing applications and typically ranges from $50 to $350. It is usually non-refundable, but some landlords may credit it towards the first month’s rent.
Move-in fee
The move-in fee covers pre-move-in maintenance costs and is usually non-refundable. Some landlords may not charge a move-in fee and use the previous tenant’s move-out fee for repairs.
Security deposit
The security deposit is for covering damages during the tenancy and may also be used for unpaid rent. It is usually the same amount as the first month’s rent and is regulated by state laws.
How much are administration fees?
Administration fees typically range from $50 to $350 and are usually paid after approval and lease signing.
When are they paid?
Administration fees are paid before the move-in date, either at the time of application or added to the first month’s rent.
Are administration fees refundable?
Administration fees are usually non-refundable, but may be refunded if the application is denied. It’s best to consider the fee as a non-refundable expense in your budget planning.
Can administration fees be negotiated?
While landlords may not always negotiate administration fees, it doesn’t hurt to ask. The fee covers the cost of screening potential tenants and is subject to state regulations.
Are administration fees legal?
In most states, administration fees are legal, but some states have limits on the amount that can be charged. For example, New York and Wisconsin limit application fees to $20, while California restricts fees beyond the security deposit.
- In Vermont and Massachusetts, landlords cannot charge application fees.