What Does First and Last Month’s Rent Mean?

A common lease requirement is for tenants to prepay their first and final months of rent before moving in. These payments are not refundable deposits; they’re prepayments of rent applied at the beginning and end of the lease. Unlike a security deposit, which may be refunded, first and last month’s rent typically are not returned to the tenant.

If you’re preparing to sign a lease, understanding these costs and how they differ from a security deposit can help you budget better, avoid surprises, and protect your rights as a renter.

How does first and last month’s rent work?

Some landlords request more than just the first month’s rent at lease signing. You might also be asked for last month’s rent and a security deposit. These payments serve different purposes and are usually non-negotiable in competitive rental markets where this is allowed. According to 2024 Zillow research, 75% of renters said they were required to pay first month’s rent to secure their rental.

Here’s what each of these costs  cover:

• First month’s rent: Covers your first full month in the rental.
• Last month’s rent: Prepayment for your final month, no matter how far in the future that may be.
• Security deposit: Held to cover damages or unpaid rent, and may be refundable.

Landlords in many states can legally require all three payments at the start of a lease. That means you may need to budget for up to three months’ rent before moving in. However, how much you pay upfront can vary depending on where you live and who you’re renting from.

• State and local laws: Some state and local laws place limits on how much a landlord can require at move-in — including caps on security deposits, and in certain cases, the total amount of rent and deposits collected upfront.
  
• Landlord type and policies: Large property managers usually have firm guidelines, but private landlords may offer flexibility on how or when you pay.
  
• Your renter profile: Strong credit, solid references, or agreeing to a longer lease may give you room to negotiate lower upfront costs.

If the total feels out of reach, landlords may be willing to work with you. Rental agreements aren’t always final offers, some terms can be negotiated based on market conditions, your qualifications as a tenant, and timing. The key is understanding what’s negotiable, when to ask, and how to position yourself as an attractive tenant worth accommodating.

When you’re likely to be asked for first and last month’s rent

First and last month’s rent isn’t required everywhere, but it’s common in certain types of rentals and locations. Here are some scenarios where you might be asked: 

• Private landlords often require it: Smaller property owners may ask for both first and last month’s rent to reduce risk, especially if they don’t use formal tenant screening tools.
  
• It’s common in competitive markets: In competitive rental markets where it’s allowed, landlords may request both first and last month’s rent along with a security deposit — especially in areas with high demand and fast turnover.
  
• Short-term and furnished rentals are more likely to ask: Landlords of properties like these often require multiple upfront payments to offset increased wear and higher vacancy risk.
  

If you’re unsure what’s required, ask for a full list of move-in costs before signing, and make sure those terms are clearly spelled out in your lease.

What happens when you pay first and last month’s rent?

Landlords request these payments to ensure they’re covered on both ends of your lease term. Here’s how each one works.

If you pay first month’s rent

This is your initial rent payment — nothing more, nothing less.

• What it covers: The first full calendar month of your lease, unless otherwise stated.
• Why landlords require it: To guarantee immediate income and secure your tenancy.
• Refundable? No. First month’s rent is a regular rent payment and is almost never returned.

If you move in mid-month, you may only owe a prorated amount. Always check whether prorating applies to your lease and get that in writing.

If you pay last month’s rent

Last month’s rent is paid upfront and applied to the final month of your lease.

• What it covers: Your final month of tenancy, even if that’s a year or more away.
• Why landlords require it: To prevent tenants from skipping out without paying their final rent.
• Refundable? No. Last month’s rent is used as rent, not held like a deposit.

If you pay a security deposit

Security deposits are separate from rent and are generally refundable if you meet the terms of your lease.

• What it covers: Damages beyond normal wear and tear, missed rent, and excessive cleaning needs.
• Why landlords require it: To protect their property and income.
• Refundable? Yes, usually. Most states require security deposits to be returned within a set period (often 14–30 days) after move-out, with a list of any deductions.

To help ensure you get your full security deposit back, take detailed photos or videos of the unit during both move-in and move-out. Capture every room, appliance, wall, floor, and fixture, even small scratches or wear. Save these images with time stamps and if there’s ever a dispute, you’ll have clear proof of the unit’s condition when you entered and left.

What to expect at the end of your lease

If you paid last month’s rent when you moved in, you should not owe any additional money in your final month, assuming your lease runs its full course. Here are a few things to consider:

• Ending your lease early: You may forfeit the prepaid rent if you break the lease without proper notice or cause.
  
• Rent increases: If your initial rent amount has been increased, your landlord can  require you to pay the difference between your prepaid amount and the new amount.
  
• Notice to vacate: Most leases require written notice before move-out, even if you’ve prepaid.

Avoid misunderstandings by confirming with your landlord that your last month’s rent will be applied as agreed. Get it in writing if possible.

Move in with confidence

Understanding the difference between first and last month’s rent — and how it fits alongside a security deposit — can help you avoid surprises on move-in day. These upfront costs may feel steep, but knowing how they work puts you in a stronger position as a renter. With the right information, you can move in with confidence and leave on good terms when the time comes.

Once you’re settled into your new place, stay on top of monthly rent payments to protect your financial standing. If your landlord doesn’t already offer online payments, consider requesting to set up free rent payments through the Zillow^® Rentals platform. It’s a secure, convenient way to pay rent. Renting smart starts with move-in prep and continues with good money habits throughout your lease.