Let’s Talk About Money
6/26/2021
Money is a really uncomfortable topic for some people to discuss freely, and sometimes a huge source of stress and pain. When you work with a locator, you are working with an expert on apartment locating, and we understand that life hands all of us challenges. We want to work within your budget and find a place you can comfortably call home. That being said, let’s talk frankly about costs.
Application process and fees - When you apply for an apartment, you can expect that each adult will have to go through the application process and pay $50-$100 to do so. This fee is not refundable. You can also expect an administrative fee. This is often waived during specials, and can be anywhere from $100-$250. This fee is refundable typically in the event you are not approved, however if you are approved and choose not to move in, this admin fee is almost always at risk. Reasons clients are not approved can include: Felonies and some misdemeanors, (There’s a blog post coming on this) failing to meet income requirements, failing to meet identity requirements (this is not a common problem I have seen) and evictions. Regarding evictions specifically, if there is a balance owed at the property, that just has to be handled, there is no way around it. I have seen only 1 exception where there was still a balance owed and the client got approved, but he paid the entire lease up front, which also is not often allowed. This is a great example of why having a locator work for you is so beneficial. If the situation is straight-forward then we can save you money easily. If you may not get approved, then we can usually find a solution. That being said, if you owe a balance- pay it, and your options will open up.
Proof of Income - Properties will require that you can produce proof of income. That income needs to equal 2.5-3 times the monthly rent commitment. Sometimes this is based on the market rent of the unit, sometimes it is based on the monthly rent including the specials. The approval process allows for proving your income via deposit records (in the event that you work in a cash business), an offer letter and of course paycheck stubs.
Deposit - After you are approved, and often during the application process, you will be asked to make a deposit to reserve the unit you’re applying for. If your credit score is under a certain threshold, you will not likely be denied, more often you may be asked to pay a higher deposit. This deposit holds your unit for you as you complete the approval process until your lease is signed, and you have locked your unit in. Specials can reduce or remove the deposit entirely, conversely, the deposit could be as much as one months’ rent, though it is often between $200-$500. In the event you are not approved your deposit is refunded. In the event you are approved but decide not to move in, you will likely not receive your deposit back.
Move-in Costs and Rent Prorations - Upon approval you will have a set move in date, you will be asked to sign a lease and pick up your keys. At this point you will pay your first months’ rent or a “prorated amount” of first months’ rent. This amount is determined by first calculating one days’ worth of rent and then multiplying that daily rent rate by the number of days left in the month. That way you only pay for days where you actually occupy the unit. Here’s an example where the rent is $1200/month and the client is moving on the 21st of the month.
1200/30= $40 (per day rate)
40x10 (move in day to end of month) = $400 due upon move in plus other costs. Which brings us to…
Other costs - can include: pet fee (not refundable), pet deposit (refundable), monthly pet rent ($20-$50 per pet/month), valet trash (20-$40/month), pest control ($3-$5/month) and on some occasions a technology fee which can be up to $175 at some properties, and the list can go on. This is why its so important to read and understand the terms of your lease and be clear on your monthly obligation as a tenant. Your locator has a duty to make sure you have been informed of these fees, but you owe it to yourself to be very clear on what is expected of you as well.
My intention is for this to help you plan a successful next move. The better you plan, the less discomfort you will feel around money and the less stressful your life will be. By setting yourself up for success, you can slow down and enjoy the process of finding the perfect place to call home and curate your space intentionally. If there is something here that is still confusing for you or if you think maybe is inaccurate, shoot me an email here and I will be happy to answer your questions. Thank you for reading our first blog, and happy apartment hunting!
I hope you find kindness everywhere you look today,
-Jen