How Much Should I Save Before Renting?

Three separate pots of money

Saving to rent is not one number. It is move-in cash owed to the landlord, the cost of physically moving and setting up, and a reserve that keeps you solvent afterward.

• Move-in cash: first month's rent, security deposit, sometimes last month's rent, application and pet fees
• Setup: movers, deposits for utilities, basic furniture and household goods
• Reserve: ideally three months of total housing cost

A workable target

For a typical unrestricted market, budget three to four times the monthly rent for move-in and setup combined, then add a reserve. On $2,200 rent, that is roughly $6,600 to $8,800 to get in, plus a cushion.

Where last month's rent is also required, the move-in figure alone can reach four to five times monthly rent.

What you get back

The security deposit is normally refundable, so part of your savings is recoverable — but not until months or years later, and only if the unit is returned in acceptable condition. Never plan a budget that depends on getting a deposit back quickly.

Keep reading

• How Much Does It Cost to Move Into an Apartment?

  A line-by-line breakdown of everything due before and on move-in day.

• What Is a Security Deposit?

  What a deposit covers, what can be deducted, and how to get it back.