When you are a landlord, there are some important things to keep in mind. One of those things is knowing what fees and costs to expect from new tenants. This can help you budget for your property, and ensure that you are making a profit off of your rental units. Here are some of the various fees and costs that landlords can expect from new tenants and how to prepare for them.
Fees and Costs to Expect From New Tenants: First and Last Month’s Rent
When you are a new tenant, there are a few fees and costs that you can expect to pay. One of those is the first and last month’s rent. This is because landlords want to make sure that they are getting someone who is responsible and will pay their rent on time.
They also need to have a cushion in case something happens and the tenant needs to move out early. It also helps incentivize people to finish out their lease term, as they have already paid for the final month whether they use it or not.
A Security Deposit
All landlords know that security deposits are a vital part of the renting process. Not only do they help to ensure that tenants take care of the property, but they also provide a financial cushion in case of damages. You can deduct the cost of any damages from the tenant’s security deposit. However, deducting the cost of damages from a tenant’s security deposit is not always straightforward.
In some cases, it may be difficult to determine exactly how much damage was caused by the tenant. In other cases, the damage may be extensive enough that the security deposit is not sufficient to cover the repairs. As a result, it is important for landlords to be familiar with the laws governing security deposits in their state. This will help to ensure that they can deduct the cost of any damages from the tenant’s security deposit while still providing adequate protection for their property.
Fees and Costs to Expect From New Tenants: Cleaning Fees
As a new tenant, you can expect to pay a cleaning fee. This fee covers the cost of cleaning the unit before your move-in. The cleaning fee is generally non-refundable, so be sure to read the lease agreement carefully before signing. In addition to the cleaning fee, you may also be responsible for other costs such as a damage deposit, first and last month’s rent, and pet fees. These fees can vary depending on the landlord and the property, so be sure to ask about all fees and costs upfront. By being prepared for these fees, you can make the transition into your new home smooth and stress-free.
Owning an investment property is a great step to growing your financial well-being. But to be successful you have to be ready to make tenants accountable. Collect these three fees and costs from new tenants to prevent getting scammed.
Did you enjoy reading this article? Here’s more to read: How to Reduce Water Usage in Your Home Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.