Deposits and Utilities

     Deposits and utilities are factors sometimes overlooked by the first time housing shopper and can put a dent in your budget for the first few months. When working with an apartment complex, realtor, or even a private landlord, you may be required to leave a security deposit of no more than two-months rent, and/or a cleaning fee. This deposit plus interest will be returned to you upon completion of the lease agreements. Be aware that the landlord can deduct money from the return deposit based on the damage to the property and/or unreasonable wear and tear. In addition to the rental security deposit, you may be required to pay a deposit on your utility services. These deposits are usually returned with interest after one full year of good credit with the utility company.

     Utilities are something to always keep in mind when selecting a living arrangement. Certain apartment complexes and landlords will include the cost of all utilities in the rent. Some apartment complexes will include charges for gas, water, and trash pickup in the rent and leave electricity and telephone expenses to you. Be sure to clarify these items before signing a lease agreement.

     If you have no previous credit with local water, telephone, electricity, and waste management companies, you can expect to pay at least $300 or more for initial deposits and service fees per apartment, house, or townhouse. These fees combined with rental deposits can add up to a hefty sum and should be calculated into your initial budget.

     You should consult the apartment complex, realtor, landlord, or utility company about the average cost of utilities for your new home. Take this information into consideration when choosing the right option for you.