What Upfront Costs Do I Need to Pay When Starting a Rental Lease?

When you’re budgeting to move into a new rental, be prepared for a few upfront payments beyond just the weekly rent.

Take care of your money.

The main upfront costs when starting a lease are usually:

Bond

As explained above, typically 4 weeks’ rent paid as a security deposit. This is lodged with the state authority until you move out​.

Rent in Advance

It’s common to pay some rent before or at the start of your tenancy. For a new lease, you’ll usually pay the first 2 weeks’ rent upfront, or in some cases a month’s rent in advance, depending on the rental agreement and local laws​. This isn’t an extra fee – it just covers your first rental period. For example, if rent is $500/week, you might pay $1,000 upfront to cover the first fortnight.

Moving Expenses

While not paid to the landlord, don’t forget costs like hiring a moving truck or removalists, buying packing materials, and maybe temporary storage. If you’re moving a long distance, include petrol or flight costs.

Utility Connection Fees

Setting up accounts for electricity, gas, water, or internet might involve modest start-up fees. Some providers charge a connection fee on your first bill. The landlord/agent typically doesn’t cover this – it’s on the tenant to connect utilities in their name​.

Pet Fee or Pet Bond (if you have a pet)

Most states don’t allow extra “pet rent” or pet fees. As noted, only WA can charge a small pet bond​. Elsewhere, if a landlord approves your pet, there generally shouldn’t be an additional upfront cost – but you’re still responsible for any pet damage when you leave.

Key Deposit (occasionally)

Some apartments require a refundable deposit for extra sets of keys or access cards. This isn’t too common and is usually small if it happens.

The Good News

You should not be paying any agent letting fees or admin fees in Australia as a tenant. It’s illegal for agents to charge tenants fees for signing a lease or handing over keys. If someone tries to charge a “lease preparation fee” or something, check your local tenancy laws – in most cases you can refuse because the landlord must cover agent costs.

Tips and Tricks

Always get receipts for all payments (bond, rent, deposits). Moving in can be expensive, but aside from rent and bond, most other upfront costs are one-offs. Plan and save up a buffer in advance so these initial expenses don’t catch you off guard. After you’re over the hurdle of these upfront payments, you can settle into paying rent on the regular schedule.

P.S. If your landlord later tries to hike up the rent, remember you have options – for example, SaveMyRent can help negotiate a smaller increase so your budget isn’t blown!