What Do You Pay For When Renting a House?

When renting a house, financial obligations extend beyond the stated monthly rent. A comprehensive financial plan is necessary to account for various costs that arise before moving in, on a recurring monthly basis, and other less common but still significant charges. Prospective renters should familiarize themselves with these expenses to budget effectively and avoid unexpected financial burdens.

Upfront Rental Expenses

Before gaining possession of a rental house, several initial payments are typically required. An application fee is a common charge, generally ranging from $40 to $60 per person, though some can be between $25 and $75, or even exceed $100. This fee covers administrative costs associated with processing an application, including background checks, credit reports, and employment verification. These fees are typically non-refundable, even if an application is denied.

A significant upfront cost is the security deposit, which protects the landlord against potential damages or unpaid rent. This deposit is commonly equivalent to one month’s rent, but can range from one to three months’ rent, especially for higher-value properties or higher-risk tenants. State laws often limit the maximum amount landlords can request for a security deposit. Additionally, landlords may require payment of the first month’s rent, and sometimes the last month’s rent, before a tenant moves in.

Ongoing Monthly Costs

Once initial upfront payments are settled, renters face recurring monthly financial commitments. The most prominent is the monthly rent payment, which is primary compensation to the landlord for property use. This amount is fixed by the lease agreement and forms the largest portion of a renter’s regular housing expenses.

Beyond base rent, utilities represent a substantial and variable monthly cost. Electricity bills average between $137 and $167 per month, fluctuating based on usage, property size, and regional climate. Natural gas, often used for heating, water heating, and cooking, typically costs between $80 and $100 monthly, varying seasonally. Additional utility expenses include water, sewer, and trash collection, which collectively average around $156 per month.

Internet and cable services are also common monthly expenditures. The average monthly cost for internet service alone is about $75 to $78, while a bundled package can average $121 to $122 per month. Renter’s insurance is frequently required by landlords as a condition of the lease agreement. This insurance protects a tenant’s personal belongings from perils like theft or fire, provides liability coverage if someone is injured on the property, and can cover additional living expenses if the rental becomes uninhabitable. The average cost for renter’s insurance is relatively low, typically ranging from $12 to $23 per month.

Additional Potential Charges

Renters may encounter other charges depending on the property and lease terms. If a tenant plans to live with a pet, landlords often require a pet deposit, a non-refundable pet fee, or recurring monthly pet rent. These fees compensate for potential pet-related damage.

For properties within managed communities or complexes, parking fees might apply, particularly if dedicated or covered parking spaces are provided. These can be one-time or monthly charges. If the rental house is part of a Homeowners Association (HOA), HOA fees may be a consideration. While landlords are typically responsible for these fees, which average $200 to $300 monthly and cover common area maintenance and amenities, they can pass these costs onto tenants. This can occur by factoring fees into the monthly rent or requiring direct payment, which must be clearly stipulated in the lease.