How do deposits and leases work?

Renting is governed by state law, and sometimes city law, so the rules depend on where you live. The broad shape is similar everywhere: a security deposit, a written lease and bills you set up yourself.

Cash to move in

Expect to pay at least the first month’s rent and a security deposit. On a $2,500-a-month home with a one-month deposit, that is $5,000 (about £3,790). In Massachusetts a landlord can also ask for the last month’s rent up front, making $7,500 (about £5,680). The moving fund calculator adds it all up. It uses Zillow median asking rents (6 October 2026), so its figures differ slightly from the Apartment List rents in Finding a place to rent.

Security deposits by state

The deposit protects the landlord against unpaid rent and damage beyond normal wear and tear. There is no national deposit scheme like the UK’s: the landlord or agent holds it, in some states in a separate or interest-bearing account, and must return it, minus itemised deductions, by a deadline.

Penalties for keeping a deposit wrongly can be steep: in Massachusetts the tenant can be awarded three times the deposit, in Maryland up to three times the amount withheld, and in Chicago twice the deposit. In New York, a landlord who doesn’t give an itemised statement within 14 days must return the whole deposit.

The lease

A lease is usually for a fixed term, often a year. Read it before you sign, and look for: who pays which utilities, rules on pets and guests, parking and “amenity” fees, how repairs are requested, how much notice you must give, renewal terms and the cost of leaving early. Ask for any spoken promises to be added in writing. If you give notice to leave, check the lease: in Texas, for example, many leases require 30 days’ notice as a condition of getting your deposit back.

Rent increases

Outside rent-regulated homes, landlords in most of the US can raise the rent when the lease ends, with proper notice. Some places limit this:

For renewing, see Renewing your lease.

Renters insurance

Renters insurance covers your belongings against fire, smoke, theft, water damage and other listed events, pays extra living costs if the home becomes uninhabitable, and covers your liability if someone is hurt in your home or you damage someone else’s property. Some leases require it. It is cheap: the average premium was $171 a year in 2022 (about £130), according to the insurance regulators’ association, the NAIC. Floods and earthquakes are not covered by a standard policy and need separate insurance. Make a list of what you own, with values, so you insure enough.

Setting up utilities

Ask the landlord which bills you pay. You usually set up electricity, sometimes gas, and internet yourself, ideally a week before you move in. Water and rubbish collection are often included in apartment buildings.

• Electricity and gas usually come from the utility that serves your address
• In much of Texas you choose your own electricity plan: the state’s official comparison site is Power to Choose. Some areas, including Austin, are not open to competition: most Austin homes get power from the community-owned Austin Energy
• With no US credit history, ask the utility whether a deposit is needed and whether a letter from your employer or a previous supplier avoids it
• Internet comes from cable, fibre or 5G home providers: see Phone and internet
• Book a removal firm or a van early if you move on the 1st of the month, when many leases start