What Are Move-In Fees vs. Security Deposits?

Move-In Fee vs. Security Deposit: What's the Difference?

A move-in fee is a payment for a service, and a security deposit is your money held in trust. They serve different purposes, they're regulated differently, and only one of them gets refunded.

Move-In Fee

A move-in fee is a one-time, non-refundable payment charged by a landlord when you sign a lease. It typically covers the landlord's cost of preparing the unit for a new tenant, including tasks like touch-up painting, cleaning, rekeying locks, or processing your application.

Common types of move-in charges include:

• Application or screening fee: Covers background and credit check costs. Non-refundable in most states.
• Non-refundable move-in fee: A general charge for unit prep and turnover. Usually 33-50% of one month's rent.
• First month's rent: Due at signing and part of the upfront cost.
• Last month's rent: Sometimes required for additional security.
• Holding fee: Takes a unit off the market during application processing and sometimes applies to the first month's rent.
• Pet fee: A non-refundable one-time charge for pets, separate from a refundable pet deposit.
• Utility connection or amenity fee: Sometimes charged to cover setup costs for building services.

Move-in fees are legal in most states, but regulations vary. Some cities cap or restrict them, like Seattle, where move-in fees can't exceed 10% of one month's rent. Massachusetts limits landlords from charging anything but rent, a security deposit, and the cost of changing the lock.

Sample Move-in Costs by City

Rent figures from the ApartmentAdvisor national rent report (April 2026).

Security Deposit

A security deposit is a refundable payment held by the landlord during your tenancy. If you leave the unit in good condition and owe nothing, you get it back. This deposit covers:

• Damage to the unit beyond normal wear and tear
• Unpaid rent or utility bills
• Excessive cleaning costs
• Costs related to lease violations

While there can be some differences in the details between landlords and rental units, here's typically how it works:

• What does it typically cost? Most landlords charge one month's rent. Some charge two months, particularly for furnished units or tenants with limited credit history. Certain states have specific regulations, but the national average is roughly $1,500 to $2,000.
• Are there requirements? Many states require landlords to hold the deposit in a separate, interest-bearing account. Some require landlords to pay annual interest on the deposit to the tenant.
• Is it part of the rent? No. A security deposit is not rent and cannot be applied to your last month's rent unless your lease explicitly allows it.
• When is it paid? Before or at lease signing.
• When is it returned? State laws vary, but most refund within 14 to 60 days after move-out.
• What can be deducted? Damage beyond normal wear and tear, unpaid rent, and cleaning costs if the unit is left in poor condition. Landlords cannot deduct for ordinary wear and tear, such as minor scuffs, carpet wear from regular use, or faded paint.

Key Differences

While the two seem similar and there might be some overlap (some movers will take "last month's rent" as the security deposit, for instance), there are some important differences to note between the two costs. Here's what to keep in mind:

Move-In Fee

• Non-refundable
• Rarely regulated; few states or cities cap it
• Covers landlord's prep and turnover costs
• Not held in escrow; immediately paid to the landlord
• Typically costs 33-50% of one month's rent
• No interest paid to the tenant

Security deposit

• Refundable if no damage to the rental or unpaid rent
• Highly regulated; most states cap at 1-2 months' rent
• Covers damages or unpaid rent at move-out
• Funds often required to be held in a separate escrow account
• Typically equal to 1 month's rent, sometimes 2
• Some states require interest to be paid to the tenant

Moving in Cost Comparison by City

The difference in total upfront cost between cities is stark. A renter in Chicago could owe over $5,900 before their first full month of tenancy if a landlord charges both a move-in fee and a security deposit. In Phoenix, the same scenario runs under $3,000. In markets with no security deposit caps and no move-in fee limits, total upfront costs can easily exceed two months' rent.

Can Landlords Charge Both a Move-In Fee and a Security Deposit?

Yes, in most states. No federal law prohibits it, and most states don't restrict the combination. In a typical market, a renter might pay a non-refundable move-in fee on top of a full security deposit, plus first and last month's rent, before they get the keys.

However, local laws can limit total upfront charges. Some cities impose caps on what landlords can collect. Seattle caps non-refundable move-in fees at 10% of one month's rent and requires them to be disclosed in writing. An Illinois Appellate Court ruling also established that a move-in fee can be treated as a security deposit if it isn't clearly labeled non-refundable in the lease.

To find your local tenant rights, start with your state's attorney general website or a local tenant union. The U.S. Department of Housing and Urban Development (HUD) also provides state-by-state resources. You may have protections such as caps on total deposit amounts, deposits held in separate accounts, mandatory itemized deduction statements, and strict return deadlines with penalties for violations.

Before you sign a lease:

• Make sure charges are clearly labeled as refundable or non-refundable.
• Verify the deposit amount, along with the bank or account where it will be held.
• Confirm that the deduction criteria and return timeline are spelled out.
• Scan for any additional fees not mentioned in the listing.

Fees can sometimes be negotiated. Move-in fees have more wiggle room than security deposits, particularly in slow rental markets or off-peak seasons (fall and winter). Offering a longer lease term, a strong credit history, or references can also give you leverage. Security deposits are occasionally negotiable if you can demonstrate financial stability or offer to prepay multiple months of rent.

Which Is Better for Renters?

For most renters, a security deposit is better than a move-in fee because at least part of the money has a chance of getting refunded. A move-in fee is gone from the moment you pay it. If you're comparing two units with similar rent, a landlord who charges only a security deposit is generally offering better terms than one who charges both a fee and a deposit.

Now, finding rentals that only charge one and not the other isn't always realistic. In competitive urban markets like Los Angeles, Chicago, or Miami, it's common for landlords to charge both. More than half of Chicago landlords listed on the Domu platform charge move-in fees, but only a small minority charge both a move-in fee and a security deposit simultaneously. In smaller markets or areas with more rental supply, landlords may be more willing to waive the move-in fee entirely to fill vacancies.