Move-in fee v. security deposit

[Joey Nakayama]

As a Chicago landlord, I've noticed many local apartment listings that ask for a non-refundable move-in fee instead of a security deposit. I suspect this is partially due to Chicago's strict laws regarding security deposits.

Fellow landlords, where do you fall on this issue (especially you Chicagoans)?

And for any renters out there who have weighed these options, what do you think?

[Marcia Maynard]

What you can do is dependent on the landlord-tenant laws for the jurisdiction of the property. What works is dependent on the specifics of the market.

We charge: application fee/move-in fee/security deposit/first month's rent. For a typical 2BR/1BA duplex unit that would be $40/$150/$600/$660-$690. For a typical 3BR/1BA house it would be $40/$200/$800/$1000. We specialize in "affordable" housing, which means on the low end of the rent scale, clean & well maintained, but a bit dated, in B or C neighborhoods that have a reputation of being safe and desirable.

If a prospective tenant questions the move-in fee (rarely does this happen) I explain it is to cover the costs that we incur when moving in a new tenant, such as changing the locks and administrative processing.

We prepare a folio to give the tenant that is a welcome packet of useful information and also contains the rental contract. On move-in day we surprise the new tenant with a move-in gift package of our favorite cleaning products in a cleaning bucket, a new cutting board, toilet paper, liquid hand soap, paper towels, disinfectant cleaning wipes, dish washing liquid or dishwasher detergent. We provide the tenant with use of drop cloth floor runners and furniture sliders for one week to make it easier for them and to protect our property from unnecessary damage. We also have a bucket of "approved hanging devices", a small hammer and a picture measuring and leveling device that we loan them for one month.