I moved to Austin from India in August 2020. I had never rented an apartment in America before. I thought I needed first month’s rent. That was it. I had no idea there were five or six other costs waiting for me before I even touched the door handle. By the time I got my key, I had already spent money I did not plan to spend. This post breaks down every single cost I did not see coming so you can actually prepare before it hits you.
When I first looked at apartments near UT Austin in July 2020, I was still in India. I was doing everything by email and video call. My student stipend was not large. So I was counting every dollar before I even landed.
I found a three bedroom apartment near campus. Two other roommates were taking the other rooms. One of them was Jake, who I connected with through a UT Austin incoming students group. He was an American already in Austin and he was patient enough to walk me through a lot of things I did not understand. The landlord wanted to move fast. The apartment was ready in August and they had other people looking at it.
So I said yes. And then the numbers started coming.
I want to walk you through exactly what happened, in the order it happened, so you know what to expect.
The application fee came first
Before I could even apply, the landlord asked for an application fee. It was $75. I thought it was maybe a one-time thing for the whole apartment. It was not. It was per person. So all three of us paid $75 each.
I did not think much of it at the time. But later I found out that some landlords charge even more, up to $100 or $125 in some buildings. And the important thing to know is that this fee is almost never refundable. If they reject your application, you do not get it back. It just pays for the background check and credit check they run on you.
As an international student I also had no US credit history at all. Zero. So Jake actually had to help explain that to the landlord and vouch a little for the situation. I got approved but I had to pay a slightly higher deposit because of the no credit history issue. More on that in a moment.
Then came the security deposit
The security deposit was the big one. It was one full month’s rent. For our apartment, that was $1,450 per month in rent and each of us paid one third. So my share of the rent was about $483 per month. And my share of the deposit was also $483.
Except it was not exactly $483. The landlord saw that I had no US credit history and added a small surcharge. My portion ended up being $600.
I want to be clear about something here. That $600 was not gone. It was just held. The landlord holds it and is supposed to return it when you move out, minus any legitimate damages. I got most of it back when that lease ended in May 2022. But in August 2020, $600 leaving my account before I even unpacked felt like a lot.
First month’s rent
This one I knew about. First month’s rent was due before I got the keys. My share was $483 Fine.
But here is something I did not fully understand. Some apartments also ask for last month’s rent upfront. This apartment did not. But I have seen apartments in Austin that ask for first month, last month, and security deposit all at once before you move in. If that happens to you, you are looking at three months of rent before you sleep one night there. Be ready for that.
Admin and lease fees
Some landlords call them admin fees. Some call them lease preparation fees. Some call them processing fees. Whatever the name, this landlord charged $150 when we signed the lease. It was not in the listing. It was only in the lease document itself.
Jake spotted it and asked about it. The landlord said it was standard. I did not know if that was true or not. Jake was not sure either. We paid it.
I have since learned that these fees are extremely common in Austin and Texas in general. They are separate from the security deposit and they are not refundable. They just cover the landlord’s time for preparing the paperwork. Some buildings charge $100, some charge $200. It depends on the property.
Renters insurance
The lease required renters insurance. I had never heard of this before. In India we did not have something like this for renting an apartment. I thought insurance was for cars and health. I had no idea you could buy insurance for renting a place.
The landlord required a minimum of $100,000 in liability coverage. Jake helped me look up a few options. I went with a basic policy that cost about $12 a month. So I paid my first month right when I moved in.
That is $12. Not a big number. But again, it was something I did not plan for and had to figure out in the two days before move-in.
The utility setup cost
Austin Energy, which is the electricity provider for most of Austin, required a deposit from me because I had no US credit history. It was $200.
I remember staring at that number on the screen and just feeling tired. I thought electricity was something you just turned on when you moved in. I did not know they could ask for a deposit. But they can, and they did.
This deposit gets credited back to your account over time as you build a payment history with them. But that first month, it was $200 out of my pocket before the lights came on.
Jake had no deposit requirement because he had an established credit history in the US. This was one of the first times I really understood that not having US credit history creates real costs that American renters do not face.
The actual move in cost I paid
Let me put it all in one place so you can see it clearly.
Application fee: $75
Security deposit (with no credit surcharge): $600
First month’s rent: $483
Admin fee: $150
Renters insurance first month: $12
Utility deposit to Austin Energy: $200
That is $1,520 before I even ordered my first meal in Austin.
And I had not bought a single piece of furniture yet. I had not bought a shower curtain, a toilet brush, a broom, kitchen soap, anything. The apartment was completely empty. Jake had some things from before but the third bedroom and the common areas needed stuff.
I spent maybe another $200 in the first week on the most basic supplies. Amazon was very popular that week.
What I wish someone had told me before I left India
When I was packing in India, I thought I needed to bring enough money for maybe two months of rent to get started. The reality was I needed closer to four months of rent liquid and available before I even understood what apartment I was getting into.
If you are moving to the US for the first time, especially as an international student, build a budget that includes all of these:
- Application fee for each apartment you apply to (you might apply to more than one before you get approved)
- Security deposit, which can be higher if you have no US credit history
- First month’s rent and sometimes last month’s rent too
- Admin or lease preparation fees
- Renters insurance setup
- Utility deposits, especially if you have no US credit history
No one gave me this list. I built it after the fact by tracking what actually happened to me.
How Jake helped without even knowing it
Jake was not trying to teach me anything. He was just living his life. But because he was American and had rented before, he knew the process. He knew what questions to ask. He knew what was normal and what was not.
I watched what he did and asked a lot of questions. When he said the admin fee seemed annoying but normal, I believed him. When he helped me find the renters insurance option, I was genuinely grateful. Having someone who understood the system made a big difference.
If you do not have someone like Jake, this post is meant to be that person for you.
One thing I want you to do right now
Before you apply for any apartment, ask the landlord or property manager for a full list of move in costs. Not just the rent. Not just the deposit. Everything. Ask them to write it down. A good landlord will not hesitate. A landlord who gets annoyed by the question is telling you something.
You have the right to know what you are paying before you sign anything.
FAQ
How much money do I need before I move into my first apartment?
Plan for at least 3-4 months of rent saved before you start. You will spend first month’s rent, a security deposit that is usually one month’s rent, and some extra for fees and setup costs.
What is a security deposit?
It is money you pay before you move in. The landlord holds it. When you move out, they give it back minus anything you damaged. You should get most or all of it back if you took care of the place.
Can my landlord ask for more deposit if I have no credit history?
Yes. This happens a lot to international students and people new to the US. Some landlords charge a higher deposit or ask for two months upfront. It is legal in Texas.
What is renters insurance and do I really need it?
It covers your stuff if there is a fire or theft. It also covers you if something happens in your apartment that hurts someone. It is usually $10 to $20 a month. Many landlords require it. Even if yours does not, it is worth having.
Why did the electricity company ask me for a deposit?
If you have no credit history in the US, some utility companies ask for a deposit to protect themselves. It is not forever. They usually credit it back after 12 months of on-time payments.
What is an admin fee and do I have to pay it?
It is a one time fee some landlords charge when you sign the lease. It covers their paperwork costs. It is not refundable. It is very common in Austin. Usually between $100 and $200. You will often only see it in the actual lease document so read the full lease before you sign.
Is the application fee refundable if I do not get the apartment?
Almost never. It pays for the background check and credit check. Whether you get approved or not, that money is gone. This is why you want to be sure about an apartment before you apply.
