Move-In Fees vs. Security Deposit: What’s the Difference?

Moving into a rental often involves upfront costs, such as move-in fees and security deposits. A move-in fee is a one-time, non-refundable cost landlords sometimes charge to cover administrative or turnover expenses. For example, these fees may cover costs for administrative or leasing services, pet acceptance, utility connection setup, or even amenity access. A security deposit, on the other hand, is a refundable fee a landlord charges to cover costs from damage to the rental beyond normal wear and unpaid rent.

The good news is that both move-in fees and security deposits are one-time costs and don’t recur each month. Understanding how each one works will help you budget more accurately and know what to expect when it’s time to move out.

Differences between move-in fees and a security deposit

While both move-in fees and security deposits are one-time, upfront payments tied to your lease, they aren’t the same thing. They serve different purposes, follow different regulations, have unique costs, and may or may not be refundable.

Here’s a quick overview of the primary differences we’ll cover in more depth.

Purpose

Move-in fees can cover a range of administrative costs, like processing your lease, and other costs related to getting your new home ready, such as changing locks in between tenants, providing access to smart keys, amenities or storage facilities, and setting up utilities. Move-in fees are intended to help offset the landlord’s costs of preparing a unit for a new tenant. 

On the other hand, a security deposit is a refundable payment that serves as financial protection for your landlord and helps to ensure the terms of the lease agreement are met. Beyond paying rent, you’ll be responsible for maintaining the property and following any rules and regulations specified in your lease. The security deposit can be used to cover repair costs for damage beyond normal wear and tear, missed rent payments, or other lease violations, which may result in your landlord or property manager withholding some or all of your security deposit at the end of your lease term. If no such issues arise, your security deposit should be returned.

Refundability

Move-in fees are non-refundable. A security deposit, however, is refundable. As long as the unit is left in good condition and you’ve met all your lease obligations, you should receive your security deposit back after you move out. Your landlord will usually walk through the rental to inspect the condition before you move in and after you move out to make sure there is no damage beyond normal wear and tear. If anything is found, the cost of repairs can be deducted from your security deposit, and any remaining balance will be returned to you. In a 2024 Zillow study, 58% of renters reported they got all or most of their security deposit back at the end of their lease.

Cost

Move-in fees are generally smaller than security deposits. The total amount can vary depending on the rental market and what exactly the move-in fee covers. For instance, here are some common costs that may be included in a move-in fee:

• Pet fee: When living in a rental with pets, your move-in fee may include a fee for having a pet. Typically, pet fees range from $40-59.
• Administrative fee: Move-in fees frequently cover various costs associated with processing your application and preparing the home for move-in.
• Utility setup fee: If utilities aren’t included in your rent, you may need to pay fees to establish service. In the U.S., median monthly utility costs for renters run around $150.

Security deposits are usually more substantial. In many cases, they equal 1 to 2 months’ rent, depending on state law and the landlord's policy. The typical security deposit, among renters that paid one, was about $750 in 2024. Some state or local laws cap the amount a landlord can charge for a security deposit.

Regulations

Move-in fees are usually subject to fewer legal restrictions. However, some states and cities have begun regulating rental fees (including move-in fees), placing limits on how much landlords can charge and requiring clearer disclosures.

State and local laws often dictate how much can be charged for a security deposit, where it must be held (sometimes in an interest-bearing account), and how quickly it must be returned after a tenant moves out.

Similarities between move-in fees and a security deposit

Despite their differences, both move-in fees and security deposits are upfront payments that play important roles in rental agreements.

Financial commitments

Move-in fees and security deposits are tied to the start of a lease and are typically required before you receive keys. While they differ in whether they are refundable, they both represent financial commitments from the renter to secure the apartment.

Paid before move-in

Tenants usually pay both fees at lease signing or just before moving in. They’re part of the initial cost of entering a new rental agreement and are used by landlords to help manage the risks and costs associated with tenant turnover.

Protect the landlord’s interests

Whether it’s a non-refundable move-in fee to cover prep costs or a security deposit to provide financial protection against unpaid rent or potential damages, both payments help landlords protect their properties and reduce financial risk.

Can a landlord charge both a security deposit and a move-in fee?

In many places, it’s legal – and common – for landlords to charge a move-in fee and security deposit. Some local laws limit the amount or type of upfront fees landlords can charge. Always check your lease and local tenant laws to know your rights.