Move in fees? Do you suggest all landlords do a move in fee?

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Move in fees? Do you suggest all landlords do a move in fee?

Charlie Moore

Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes

Do you charge a move in fee?

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Jill F.

Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes

The only thing like that I've heard tell of, is for student rentals. The property management companies around the school charge a "move-in cleaning fee of around $200" IF incoming tenants want the unit professionally cleaned; otherwise the students get unit just like the last tenant left it-- presumably "broom clean" but the stoves are always disgusting.

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Ivy Flowers
Real Estate Agent · Cleveland, OH · Member since 2018 · 73 posts · 31 votes
7y
I have never heard of a move in fee? Does the tenants benefit from this move in fee, are they getting assistance for their move in? In Cleveland, I've never heard of such a thing.
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Charlie Moore
OP
Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes
7y
@Ivy Flowers
Hey ivy! It seems like it’s uncommon
But it’s basically, a charge that is placed upon the newest tenant. Landlord doesn’t have to give it back, landlord doesnt have to HOLD it in “ escrow “
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Jill F.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
7y
The only thing like that I've heard tell of, is for student rentals. The property management companies around the school charge a "move-in cleaning fee of around $200" IF incoming tenants want the unit professionally cleaned; otherwise the students get unit just like the last tenant left it-- presumably "broom clean" but the stoves are always disgusting.
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Charlie Moore
OP
Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes
7y
@Jill F.
Jill! Do you invest into the student rental markets?
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Jill F.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
7y
@Charlie Moore , No. I looked at some early on before we had made a firm decision on the path we wanted to take but we decided to go a different route. We do own 2 side by side 4-unit buildings (all 1 bedroom) that are on the outskirts of the student housing area. About half of our tenants are students but they are all "non-traditional" students with regular year round jobs-- working people. While it can be very lucrative, by the room student rentals and annual turnover are just not for us and we felt that the market around here was over saturated with all the recent development in town.
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Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
7y
@Charlie Moore
A move-in fee is typically done instead of a security deposit. The thought is it’s a fee versus a deposit. A security deposit I return minus damage to the unit versus a move-in fee which I keep. In my state the move-in fee cannot be greater than 50% of the monthly rent. Check your state requirements. I prefer a security deposit.
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Steve RozenbergPro Member
Specialist · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Charlie Moore
I think the challenge with the move-in fee versus a deposit is that there’s no reason for the tenant to leave the property in the same condition they found it if they paid and upfront fee and do not have any incentive to get any money back not saying it’s OK for a tenant to not leave a property in good condition however there should be some incentive which is the security posit to at least be able to charge them for any damages above where in tear done to the property while they were living there
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Lien VuongBusiness Member
Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
7y
In MA it is illegal to charge a tenant a move in fee and an application fee.
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Charlie Moore
OP
Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes
7y
@Lien Vuong
Really? Wow! Can you send link that refers to this or proves this? Thanks
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Charlie Moore
OP
Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes
7y
@Steve Rozenberg
How many units do you own currently? If I may ask.
What’s the average security deposit?
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Charlie Moore
OP
Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes
7y
@Kenneth Garrett
Send link that states you can’t use a move in fee greater than the monthly rent
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Lien VuongBusiness Member
Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
7y
@Charlie Moore
https://www.strangscott.com/application-fees-move-fees-pet-fees-landlords-beware/
Every state is different but MA is definitely a tenant friendly state. There's triple damage laws instated for Security Deposits and Last Month's Rent also.
[email protected]
The Elle Group5153 Reviews
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Charlie Moore
OP
Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes
7y
@Lien Vuong
Yes, this is simply to give the tenant something to work with. These laws
I have never seen a tenant win a case, when the lease was broken.
My point: if you don’t pay rent, if you violate contract, the court will usually stick up for landlord
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Jay Poires
Rental Property Investor · Los Angeles, CA · Member since 2016 · 10 posts · 9 votes
7y
@Charlie Moore
A lot of apartments will only charge move-in fees because they purchase a SURETY bond with that money to cover any damages. This is why the fee is non-refundable. Pretty common in larger properties.
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Carmen Graves
Rental Property Investor · Chicago IL, United States · Member since 2018 · 17 posts · 14 votes
7y
In Chicago, it is very common to have a move-in fee, as high as $500 which is not refundable. New tenants are used to be charge for it everywhere so I implemented it for my rentals.
In the other hand, in Dallas (where I used to live/rent), low deposit of $100-$150 was common practice. As a tenant if I would had anything higher than i would have walked away.
I think move-in fees are market dependent. Also investigate your state laws to find out maximum move-in fees allow. I believe if it is higher than 50% rent, it would become a deposit, at least in IL
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Pearly Tan
Rental Property Investor · NJ · Member since 2018 · 70 posts · 26 votes
7y
What I have seen are HOA's charging move in fees to kind of "discourage" rentals in their association. The fees of course go to the HOA and not to the landlord.
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Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@Charlie Moore I’ve got rentals like this. I don’t really care one way or another
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Ryann Kluthe
Real Estate Agent · Omaha, NE · Member since 2017 · 26 posts · 19 votes
7y
@Charlie Moore I’ve never heard of a move in few. Have you checked your local landlord tenant laws? I know there are laws for how much you can charge on pet deposit and rent deposit. Be sure to have your lease reviewed by a local real estate attorney
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Charlie Moore
OP
Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes
7y
Originally posted by @Ryann Kluthe:

@Charlie Moore I’ve never heard of a move in few. Have you checked your local landlord tenant laws? I know there are laws for how much you can charge on pet deposit and rent deposit. Be sure to have your lease reviewed by a local real estate attorney
Hey! many people suggest an attorney, that is a seemingness waste of money
being a landlord, you are already strapped for cash. i Refuse to pay 350.00 for a consultation with a lawyer, when an educational forum almost provides the same thing!
But yes, move in fees! i hate holding security deposits in escrow
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Charlie Moore
OP
Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes
7y
@Lien Vuong
Hi!
Pennsylvania seems to NOT have ANY written words on the “ Move In Fees “
Would you mind searching for PA law and finding something?
I couldn’t find ANYTHING! It would be great if you helped me double check lol
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Jonathan W.
Los Angeles, CA · Member since 2019 · 512 posts · 301 votes
7y
@Charlie Moore some people do a lease set up fee.
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Gregory H.
Real Estate Agent · Philadelphia, PA · Member since 2013 · 451 posts · 369 votes
7y
People understand that a security deposit is common. You tell people you're going to charge them a half months rent upfront, you're probably going to have higher vacancy rates due to lack of interest, and people are going to view you as a scummy landlord.
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Charlie Moore
OP
Rental Property Investor · D.C · Member since 2019 · 501 posts · 102 votes
7y
@Gregory Hiban
Already have heard this
10 people have called me a “ scam “ so far LOLLLL
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Travis WylieBusiness Member
Property Manager · 17112 · Member since 2016 · 271 posts · 151 votes
7y
It's not common practice in my area and like @Gregory H. was getting at, I feel it's only going to cause more complications with getting your vacancy filled.
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Jef Aizel
Member since 2021 · 1 post · 1 vote
5y
In Massachusetts the Security Deposit Law ( M.G.L. c186, s. 15B) and the Statute of Frauds (M.G.L c93A) limits landlords to collecting only first, last, a security deposit up to one month's rent and a key change charge. Any fee beyond that (move-in fees, pet fees or deposit -a pet deposit can be assessed, but only if the sum of it and the security deposit do not exceed one month's rent- amenity fees, application fees) are barred, even if a tenant agrees to pay, is actionable. For example, I'm a tenant and agree to pay a move in fee for an apartment I really want. After signing the lease, I can then turn around and sue the landlord for the amount of the move-in fee and may be eligible for treble (3x!!) damages under the Statute of Frauds. As a real estate agent, I always warn my clients of this, either those listing or those looking for housing.
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