Renting your first US apartment: deposits, fees and what to check
In short: landlords usually ask for an application with proof of income, a credit or tenant screening check, and a security deposit plus the first month's rent before you move in. A common guide is to keep rent to about 30% of your gross income. Read the whole lease, photograph the apartment when you move in, and never pay for a place you haven't seen or checked is real.
What landlords usually ask for
- An application, sometimes with a fee, and photo ID.
- Proof of income: pay stubs, an offer letter or bank statements. Many landlords look for income of about three times the rent.
- A credit check or tenant screening report, which can include rental history and court records.
- References from an employer or a previous landlord.
Newcomers often have no US credit history yet. Landlords may then ask for a larger deposit, a few months' rent in advance, or a guarantor (co-signer) who agrees to pay if you don't. Ask what they accept before you pay an application fee.
How much rent can you afford?
The US housing department counts households that spend more than 30% of income on housing as "cost burdened", so 30% of your gross (before-tax) pay is a common upper guide. On $3,500 a month before tax, that is about $1,050. Remember utilities, internet, renters insurance, transport and furniture too. The budget planner and salary converter help you check.
Money you need up front
| Cost | What it is |
|---|---|
| Application fee | Covers screening; often not refunded |
| Security deposit | Held against damage or unpaid rent; often one month's rent, sometimes more |
| First month's rent | Sometimes also the last month's |
| Other fees | Possibly a broker fee, pet deposit, parking or move-in fee |
Each state sets its own rules on how big a deposit can be, how quickly it must be returned and what can be taken from it. Search your state or city's tenant rights page, or ask a local tenant organization.
The lease
- Check the rent, the due date, late fees and how you can pay.
- Check the length of the lease and what happens if you need to leave early.
- See who pays which utilities and who fixes what.
- Ask for anything a landlord promised to be written into the lease.
Moving in and out
On move-in day, take dated photos or a video of every room and note any damage on a move-in checklist signed by the landlord. Do the same when you leave. This is your best evidence for getting your deposit back.
Rental scams
Be careful if the rent is far below similar places, the "owner" is abroad and can't show you the apartment, or you are asked to pay a deposit by wire, gift card, payment app or crypto before signing anything. See the place in person (or have someone you trust do it) and confirm who owns it before you pay.
Your rights
The Fair Housing Act makes it illegal for landlords to discriminate because of race, colour, national origin, religion, sex, disability or family status. If you think it has happened, you can file a complaint with the US Department of Housing and Urban Development (HUD).
Handy tools
- Monthly budget planner: see what is left each month and how your spending splits up.
- Salary converter: hourly, weekly, monthly and yearly pay, side by side.
General information, not financial advice. Rules, fees and rates change and depend on your situation. Check with your bank, the provider or a qualified professional before you decide.