The process of renting an apartment comes with a laundry list of tasks and fees. From the application fee to the move-in fee and security deposit, it can seem like a never ending list of expenses before you even finish moving in. Most of these charges are straightforward, but administration fees are a bit more vague. It’s worth it to take time to get familiar with standard administration fees and what they cover, along with local landlord-tenant laws, so you understand what your landlord can and cannot legally charge you as a tenant.
What are administration fees? What do they cover? How do they differ from other fees? This Redfin article answers all those questions and more. It’s important to understand these fees whether you’re renting a two-bedroom apartment in Louisville, KY or a studio in Seattle, so let’s get straight to it.
What is an administration fee for an apartment?
Landlords charge tenants an administration fee to help mitigate the risk they take when pulling the unit off the market in case the prospective tenant doesn’t work out. The intent is to cover the landlord’s time to process the application, and is often considered a deposit to secure the apartment.
If your application is approved, the fee is non-refundable. If your application is denied, you should receive a refund for the application fee, minus any charges for the credit and background check.
How is the administration fee different from a move-in fee or a security deposit?
It’s easy to confuse the administration fee, security deposit, and move-in fee, as all of them are paid prior to moving in. We’ll walk through what’s involved with each one so you can approach any apartment application process with the correct information and budget expectations.
Administration fee
The administration fee pays for the landlord or property manager’s time and effort to process your application and hold the apartment for you. This fee typically ranges between $50–$350; some states…