Should You Charge First, Last, and Security Deposit? (Why Most Landlords Shouldn’t)
Should You Charge First, Last, and Security Deposit?
If you’re a landlord trying to decide whether to charge first month, last month, and a security deposit, this video breaks down what actually works in today’s rental market.
In many Central Florida markets, charging first month and a security deposit keeps your listing competitive. For example, on a $2,000 rental, that’s typically a $4,000 move-in cost. If you add last month’s rent, you’re asking for $6,000 upfront, which is a 50% increase.
For qualified tenants, that higher barrier often pushes them toward other available homes with lower upfront costs. In a competitive market, that can lead to longer vacancy and fewer applications.
While you can charge last month’s rent, it’s typically not recommended unless the applicant presents higher risk. Even then, increasing the security deposit is often a cleaner and more effective approach.
There are also additional requirements for how last month’s rent must be handled, including escrow considerations, which add complexity without much upside in most cases.
If you’re looking to stay competitive and lease your property efficiently, first month’s rent and a security deposit is usually the best structure.
