Congratulations! Moving into your first place is an exciting milestone, especially after living with family or roommates. I’ve learned from experience that moving is always more costly that you might think, and can set you back financially for a few months if you’re not prepared for it. Being able to navigate the hidden costs of moving can prevent you from being caught off guard financially. Below are a few things to be aware of before you sign a lease, items that can help you avoid unexpected financial stress.
Navigating the Hidden Costs of Moving
Security Deposit and Initial Costs. Discuss Depending on the state you live in, you’ll often shave a substantial security deposit required by landlords. In Connecticut for example, landlords can request no more than two months of security deposit. So, if you were a renter in a state that allows two months of a security deposit, that means you’ll need to have three months of rent ready: two months of security + security needed for the first month you move in.
There are also other costs associated with moving in. Applications fees and brokers fees are costs you might have to come up with to secure your rental. Another cost that I’ve had to pay is renters insurance, coverage that helps protect renters in the case of an unexpected event, such as theft, flooding or a fire. To be prepared, save as much as possible so that you can afford these costs without having to feel pressure financially.
Furniture and Essentials. My first apartment was very empty, and was mostly furnished thanks to family. My parents let me borrow a small outside glass table with three seats that I used for my kitchen table, and my bed was a mattress on top of a bare bones frame. Making an entry-level salary, it took me a while before I could afford a nightstand, coffee table, and other basic pieces of furniture.
Utility Bills. Consider monthly utility bills (electricity, water, gas) in your budget. These can quickly add up if you’re responsible for heating, air conditioning, or other utilities.
Maintenance and Repairs. Depending on the type of lease you sign, there is a possibility that you have to pay for unexpected repairs such as pest control and waste management. Try to set aside a small emergency fund for household maintenance that could pop up.
Internet and Cable Costs. Often, we overlook the expenses of internet and cable services. Having access to basic internet is a game changer, and while some go without, it’s really nice to have access in the comfort of your home. If traditional packages are just too much to pay for, there are so many alternative, budget-friendly options like streaming services. A few years ago, Kurt and I swapped our expensive cable package out for a more affordable streaming service. Not only did we save more money each month, but a lot of the shows we like to watch are still available for us to watch.
Transportation Costs. Depending on where you move to, additional transportation costs that might arise from your new location. Typically, I preferred to live in more affordable apartments that weren’t too close to major cities or near my job. Having a few less amenities never bothered me, and saved me a ton of money in rent. However, this meant longer commute times and higher gas bills. To prepare for this, budget an increase in spending for travel and try cutting costs where possible. While I love driving and going to work in my own space, I’ve had many jobs where it was more affordable and makes more sense to take public transportation.
Food and Cleaning Supplies. One expense that always goes up when I move is my food. Living out of boxes for a few days, plus the additional time it takes to pack, restock a kitchen, and learn your new space takes time. During a move I typically order food out, which always costs more. The same goes for cleaning. Before moving in, I’ve always spent extra time and money to deep clean each room before moving my things in. The refrigerator, bathroom, closets, etc. are always prepped stocking food, bath products and cloths.
To help prepare you for the costs of moving, below are a few ways you can get ahead of the game and keep financial stress at bay:
- Budget. Create a detailed budget that includes all your monthly expenses such as rent, utilities, groceries, and transportation. This will give you a clear picture of your financial situation before you move.
- Research and Compare. Don’t settle for the first rental you come across. Research different neighborhoods to find affordable areas that meet your needs. Compare the costs of living in various locations to ensure you’re getting the best deal.
- Start Early. Begin your apartment search well in advance. This allows you more time to find good deals and discounts. Last-minute decisions may lead to higher costs.
- Roommates. There is no shame in living with roommates, especially if it means more money in your pocket. If possible, consider living with roommates to share the rent and utility expenses. This can significantly reduce your monthly living costs.
- Utilities and Services. Compare utility and internet service providers to find the most cost-effective options. Some providers may offer special deals for new customers.
- Furniture and Decor. Consider buying second-hand furniture or getting items from friends and family. You can also explore thrift stores or online marketplaces for affordable decor. Years after moving into my new place, I still check out second hand stores, tag sales and other places to find cheap or free items.
- Save on Moving Costs. Look for discounts on moving services or consider a DIY move if feasible. Borrow or rent moving equipment, and pack efficiently to save on packing supplies. During my first few apartments, I packed my own items using boxes from Costco or disregarded boxes at work, and used U-Haul to move myself in and out of apartments.
- Build an Emergency Fund. Save a small amount each month to build an emergency fund. This fund can cover unexpected expenses that may arise during or after the move.
- Review Lease Agreement. Don’t get surprised with unexpected fees! Carefully review the lease agreement to understand any additional fees or clauses. Be aware of potential costs like maintenance fees, parking fees, or penalties for breaking the lease.
- Negotiate Rent. Don’t be afraid to negotiate the rent with the landlord. In some cases, a landlord may be open to lowering the rent, especially if you have good references or a good rental history.
- Save on Transportation. Choose an apartment with good public transportation options or that is close to your workplace to save on commuting costs.
There are so many hidden costs that come with moving into your first place, so it’s so important to prepare financially before signing your lease. Budgeting, planning, and other steps can help you prepare for an enjoyable moving experience. Also, it’s important to note that you should never feel pressured by an agent or landlord to move, especially when you’re not financially ready or able to make that first step.