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Hidden Costs and Last Minute Fees to Watch Out for in Your Lease
Companies are working hard to bring in extra money for business all the time. Airlines are charging for extras which used to be free (baggage, extra leg room, snacks) and food companies are putting less in packaging for the same or even a higher cost. The bottom line has become more important than meeting consumer needs, in some cases. Consumers may forget this fact when signing a lease for a home. Renters may feel reasonable fees are charged to lease space but forget about itemized charges for utilities and other amenities which add to the total cost. A competitive rental market has driven prices higher than ever before in many urban markets. Learn more about the hidden costs and fees associated with leases and what to look for before signing a lease on the dotted line.
Utilities
Tenants tend to overlook amenities and utilities in a lease in a desire to either renew a lease or move into a new apartment. The overall cost of a property can become more than was bargained for if a consumer is not careful. Landlord/tenant laws in each state govern how utilities are billed and what recourse is available when payments are missed or shutoffs occur. Utilities may be included in the overall charge yet other times tenants must pay electric or gas bills. Third-party billing happens when an entire building is metered and the landlord splits charges among all tenants in the building, then bills individually. The charges are usually an add-on the rental charge.
City Ordinances
Third-party billing is seen by some states as a deceptive practice. Ordinances such as one in Seattle, cover all residents living in buildings with three or more units to protect tenants from fraudulent overcharging practices. Some questions can be asked of a landlord prior to signing a lease. The following are just a few a tenant may ask about add-on fees:
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Ask about utility service before signing a lease
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Set up utility accounts quickly
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Pay utility bills promptly and document payments
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Take steps to protect self from landlord
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Act immediately for better dispute resolution
Hidden Charges
Landlords in a competitive rental market may increase fees based on supply and demand which is cause for even more awareness around hidden fees. Additional fees may include:
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Pets
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Separate parking fee
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Application fee (with approval or not)
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Condos or HOAs may charge move-in fees for tenant-occupied units
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Cable TV, internet may be billed through HOA or the landlord
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Security deposit payments
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Pre-paid fees (first and last month's rent due on move-in)
The best way to protect oneself in the rental market is to be a savvy consumer, know rights afforded tenants and don't sign anything without asking questions and reading the paperwork. Advocacy organizations and state agencies provide information to consumers. Lawyers are also available who specialize in landlord/tenant law to provide support and dispute resolution.
Get more advice on spotting those hidden costs in your lease.
Contact one of our agents today.
