HACKENSACK, N.J. — Moving into your first apartment is a rite of passage. And like a lot of big life changes, it will cost you.
Whether you'll be living in a two-family house, a garden complex or a high-rise, you'll have to pay for moving in, buying furniture and insuring your belongings. All together, the expenses will add up to thousands of dollars.
Of course, the cost is worth it for the freedom of having your own space.
Here are some expenses you should plan for:
• Application fee and/or credit check: When you apply for an apartment, landlords will often ask you to pay for a check of your credit history. This typically ranges from $25 to $100.
• Broker's fee: At many apartment complexes, you can rent directly without a real estate agent or broker. But if a broker helps you find your place, his or her fee will typically equal one month's rent.
• First Month's rent.
• Security deposit: Most landlords require a payment, equal to as much as 1 1/2 months' rent, as security against damage.
• Final month's rent: Some landlords require this.
• Furnishing your space: Obviously, this cost can vary widely. Will you buy furniture at the mall or at garage sales? Will your friends and family give you dishes, pots and pans and flatware for your birthday?
Even if you snag great deals at garage sales, furnishing a place can easily run $1,000, $2,000 or more.
• Moving your stuff: If you've got a lot of strong friends and relatives, and access to a van or truck, moving doesn't have to cost more than the price of pizza and beer for your pals. Payback can be painful, though: the next time they move, you're expected to help.
If you hire a moving company, you'll get more professional service. But expect to pay for it.
• Insurance: Many renters don't bother with insurance, but you should consider it. The landlord's insurance will cover damage to the building, but not to your personal belongings.
Renters' policies typically cover your belongings against theft, vandalism and damage from fire, smoke and water. They also cover you for liability if someone is injured in your apartment.
If you get insurance, you have to decide whether to insure your belongings for their actual cash value or replacement cost. You will pay more for replacement cost, but it may be worth it.
For example, if your five-year-old couch is destroyed, its value might be only $100, but buying a new one to replace it would cost $1,000.
Premiums for renters' insurance average $15 to $30 a month, according to the National Association of Insurance Commissioners, an organization of state insurance regulators.
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