Renting an apartment in New York for the first time can feel exciting, but also a little overwhelming. You see an apartment you like, calculate the monthly rent, and think it fits your budget. But in New York the real cost of moving rarely ends with the rent price. If you are looking to rent your first apartment, this guide helps you understand how much money you may actually need before signing a lease.
1. Application fee: usually $20 per person
One of the first costs when applying for an apartment in New York is the application fee, usually $20 for each person who will live in the apartment (two people would be about $40). It is used to check credit and background, and it is NOT refundable, even if you are not approved or decide not to move forward. Be careful if someone asks for a much higher fee without a clear explanation.
2. Good faith deposit: between $500 and $2,500
Some landlords, management companies, or agents ask for a good faith deposit, usually between $500 and $2,500, to show you are genuinely interested. If you are approved and move forward, that money is often applied to the first month or the security deposit. But if you are approved and decide not to rent, the landlord can often keep it. Before sending any money, ask and request confirmation by email:
- Is this deposit refundable if I am not approved?
- If I am approved and decide not to sign, do I get it back?
- Is it applied to the first month of rent or to the security deposit?
- How long does it take to apply or return it?
3. First month of rent and security deposit
When you are approved, you normally pay the first month of rent when signing the lease, plus a security deposit that usually equals one month of rent. This deposit protects the landlord against damage or unpaid charges and is returned at the end of the lease if you leave the apartment in good condition. With a rent of $4,000 a month, your main upfront costs could add up to around $8,000 or more before moving in:
- First month of rent: $4,000
- Security deposit: $4,000
- Application fee: $20 per person
- Possible good faith deposit: $500 to $2,500, if it applies
4. Broker fee: it depends on who hired the broker
This point causes a lot of confusion. If the broker was hired by the landlord or represents the landlord, the tenant should not always pay that broker fee, depending on current rules. But if you decide to hire your own agent to represent you and guide you through the process, you could be responsible for their fee. Ask from the start who represents whom and whether there is a broker fee for the tenant: understanding this can save you thousands of dollars.
5. Building fees in condos and co-ops
Not all buildings work the same way. In many rental buildings the process is simpler, but in a condo or a co-op there can be additional building fees, from around $2,500 up to more than one month of rent. Some are refundable and some are not: for example, a move-in fee is usually non-refundable, while a deposit to protect the elevator may be returned if there was no damage. Always ask for a clear breakdown of what is returned and when. You may see:
- Move-in fee and move-out fee
- Processing fee and building credit check
- Board package review fee
- Charge to reserve the elevator
- Deposits for damage to common areas during the move
6. Renters insurance
Many buildings require renters insurance before you move in. It usually costs between $120 and $180 a year, depending on the apartment and the coverage. Buy only the coverage the landlord or building requires (sometimes they require minimum amounts or that the building be listed as an 'interested party' or 'additional interest') and do not add unnecessary extras. A practical platform we often recommend is Lemonade, where you can buy the insurance online easily.
7. Moving costs
Moving in New York can be more expensive than you imagine: professional movers, tips, boxes, the insurance the building requires, the deposit to reserve the elevator, or the building's moving fee. Many buildings only allow moves on certain days or hours, so ask the rules in advance. At Nieuw Nederlandts Realty we can recommend reliable moving professionals, with options starting at around $700 depending on the size of the move and the building's requirements.
8. Utilities and services
Beyond rent, factor in monthly services: electricity, gas, internet, cable, air conditioning or heating, and possible amenity fees. In some buildings water and heating are included; in others they are not. Before signing, ask which utilities are included, what you pay separately each month, and whether there is a mandatory amenity fee, so you know your real monthly cost and not just the rent shown in the listing.
9. Guarantor or guarantor company
If you are renting for the first time, are a foreigner or student, have no credit history in the United States, or do not meet the income requirements, the landlord may ask for a guarantor. Many require the tenant to earn about 40 times the monthly rent per year; if not, they ask for a guarantor who earns more (sometimes about 80 times). If you do not have a guarantor in the U.S., you can use a guarantor company such as TheGuarantors, which charges a fee (usually around one month of rent for a one-year lease, though it varies with the contract and the applicants' profile). At Nieuw Nederlandts Realty we help you check whether you need a guarantor, prepare the documents, and understand each step before you commit.
Renting in New York for the first time does not have to be complicated
Renting an apartment in New York can be competitive, fast, and sometimes confusing, especially if it is your first time or you come from another country. The key is not to look only at the monthly price: also the upfront costs, the landlord's requirements, the documents, and the building fees before handing over money or signing a contract. At Nieuw Nederlandts Realty we help you understand the process step by step, review the costs before applying, and find an option that makes sense for your situation, without surprises.
If you are also thinking about buying in the future, check our guides to buying an apartment in New York.