Renting from a Salt Lake City property management company is much different than renting directly from an owner. While there are benefits to both, the benefits of renting from a property manager far outweigh the drawbacks. Before you fill out a rental application in Utah, it’s important to understand the tenant fees you might encounter. Although each property manager will charge different amounts, there are a few typical fees that are associated with renting a home from a property management company.
How Much is a Rental Application Fee?
The first and most common fee when renting a property is the application fee. This is taken when applying for a rental property. The purpose of this fee is usually to cover the cost of the background and credit report necessary to evaluate potential renters. The actual cost of the application fee varies from property to property but is typically anywhere from $30 to $75 per person. However, it’s important to remember that in the state of Utah there is no limit to how much the fee can be.
Most Common New Tenant Fees
While a Utah rental application typically requires a fee, there are also a number of other common charges that come with a new rental. You may not have run into all of these at once, but these fees could come up for a future rental. It’s important to take fees into account when hunting for a new rental property. You don’t want to be surprised by unexpected charges, so it’s good to be aware of all the possible charges you could encounter. This is also helpful when deciding your budget, and finding the right home or apartment for you.
Lease Origination Fee
This is charged to a tenant when a new lease agreement is created. This fee typically covers the work associated with underwriting a new lease agreement by the Salt Lake City property manager. This fee generally covers what it takes to get a home or apartment leased. The lease origination fee covers the time to show the property, screening all applicants, and assembling the lease paperwork and move-in process. This is the “behind-the-scenes” work that ensures the best applicants are leasing the home or apartment. While this fee may not seem necessary, when you’re living in an apartment building, it’s a nice peace of mind to know that all the other tenants have been screened extensively and that you’re living in a safe place.
While this fee doesn’t happen during the rental process, it’s one to be aware of when signing a lease. As the name says, this is charged to a tenant when rent is not received on time. Late charges vary but are usually 10% of one monthly rental payment. For example, if you’re paying $800 per month, your late fee would be $80. This may not seem like a big expense, but this extra fee can add up quickly and end up costing you big time in the long run. Before signing a lease, especially a long-term agreement, it’s important to read the lease carefully and find out when rent is due, how to pay rent, and what charges you will be responsible for if you don’t pay it on time. Depending on the property, you may have a grace period, but it’s best to get into the habit of paying your rent on the first of every month.
While not every property has this fee, it’s an important one to keep in mind when signing a new lease. The month-to-month fee is charged to a tenant that chooses to overstay the term of their current lease agreement. This fee typically provides an incentive for the tenant to enter into a new lease agreement with the overseeing property management company. When reading over a new lease agreement, noting how much the month-to-month fee could be is critical. Month-to-month convenience charges can range anywhere from $25 to $200. It all depends on the property manager. So, take the time to look over your lease and ensure that you intend to stay as long as it says, or that you’ll be ready to sign another lease agreement when yours ends.
Service of Notice Fee
This is charged to a tenant that has not complied with the terms of the lease agreement. This fee is associated with the process of the property manager posting a notice for the tenant to correct the lease violation or risk eviction. In order to avoid this fee, you must adhere to the rules of your lease agreement. This is another instance where reading a lease before signing it is crucial. The most common lease violations are long-term guests, decorating that results in damage, and unauthorized pets. This fee is at the discretion of the property management company, and there is no set amount they have to adhere to. It’s best to follow the lease agreement, and not risk extra tenant fees for breaking any rules you agreed to when you signed the lease.
Know Your Possible Tenant Fees
If you’re ready to lease a home or apartment, familiarizing yourself with all the possible tenant fees that could incur is important. Unexpected fees can change your overall budget and should be factored into what you’re ready to spend. When you’re filling out a Utah rental application, keep these common fees in mind, and do a little digging to find any others that may appear. So, while “How much is a rental application fee?” is a critical question, it’s just the tip of the iceberg when it comes to tenant fees. Now that you have an idea of the cost of a rental application, you can begin factoring other possible costs into your new budget for your future home.