Calculating the True Cost of Moving

It's the month of itemized deductions! Since I've been working on my income taxes I'm in a mood for thinking about nickels, dimes, and unanticipated costs. We're also in the run up to May 1, Chicago's busiest moving day of the year, so I figured we could extend that financial focus to the blog and talk about moving expenses.

Some renters undertake moving on a whim, switching apartments for a change of pace. Others move because the landlord has raised the rent above the actual worth of the apartment. The rest move for more obvious necessities: changes in income, lifestyle or occupation. No matter the reason, few stop to consider how much a move will actually cost them, relying instead on imagined ballpark numbers.

When I worked as an agent I would counsel my clients to set aside the equivalent of three months' rent for moving expenses, a high figure that surprised many of them. For those with weak credit scores or problems in their rental history I would up that total to as high as nine months of rent. But even that is an arbitrary figure that does not apply to every move. Today we'll look at all the questions you should consider when deciding whether or not a new apartment is something you can really afford. As always, this list is not exhaustive, but I did try to be pretty thorough.

The Search

• Are you moving to a new town? What will it cost to get there for showings? Transit costs, hotel costs.
• Are you moving to a town where tenants have to pay broker fees?
• Will you be doing long days of back-to-back apartment tours? Will you need to buy food?
• How will you be getting from apartment to apartment? Will you need public transit fare? Taxi/Uber fare? Parking meter fees? Will you need to rent a car?

Timing

• What day and time does your current lease end? What time does your new lease begin? Will you need to pay double rent for a week or a month? If there's a gap, how much does it cost to keep your moving vehicle for that duration?
• Will you be moving on a weekday or a weekend?
• Are you moving on a peak moving day when companies charge a premium for supplies and labor?
• Are you moving on a holiday when businesses may be closed or charging overtime?
• Will you be moving on a day that's likely to be very hot? Raining? Snowing?
• Has your current place already been re-rented? When are the new tenants supposed to move in?
• If your movers are late or your new apartment is not ready, what does your current landlord charge for an overstay of a few days?
• Do you have to reserve an elevator window to move in our out? What happens if you miss that window? Is there a cost to reschedule?

Distance

• Are you moving in town? In state? In country? Internationally?
• What businesses are available to provide equipment for your move distance?
• Does either location have a lower cost of living? If so, is it possible to focus your purchases there?
• Will you need to get a passport? A visa? How about your partner and your kids?

Personnel

• Who will pack your belongings? Cost per hour?
• Who will lift and carry your belongings? Cost per hour?
• How will you transport your belongings? Mail them? Your own vehicle? A rented vehicle? A moving service? What will that cost you in rental fees, postal fees, gas, maintenance or mileage?
• If you are using volunteer labor, how much do they stand to lose by helping you? Will they be missing work? Will you be feeding them? What if they get hurt?
• If the stress of moving gets to be too much, can you afford to sacrifice the friendship of your volunteers?
• How will you clean up after moving? Will you hire a service? Will you need to buy cleaning supplies?

Equipment

• How many rooms are in your current place and your new place?
• How full are the rooms in your current place? Will you need more boxes than the average person?
• How will you obtain packing materials? Are you good at packing or are you likely to waste some materials?
• Will you need to downsize your belongings? How will you do so?
• If you're going to be having a yard sale for your stuff, do you need a permit? In Chicago you do.
• Will you need to rent a dumpster to discard accumulated junk in your current place?
• Will you need to obtain additional furniture to outfit extra rooms in your new place? Appliances? Light fixtures?
• Chances are you won't be able to use your new kitchen for a few days after moving in. How will you eat until unpacking is done?
• Do you have any antiques, expensive items or unique items like a piano that will take special handling and packing?
• How about pets? How will you move them? Do they need special care and handling?
• Will you need to alter your new location to accommodate for a disability?

Fees

• What fees are required to move into your new building? They could include: Security deposit, background check fee, parking fee, key deposit, pet deposit, move-in fee, elevator fee.
• How tight is the market in your new location? Will you need to pay application fees at multiple buildings before getting approved for a lease?
• What fees will your current landlord or community charge you to move out?
• Will you have to put down extra rent in advance to offset a weak credit history or rental history? If so expect to have to pay as much as six months' rent up front.
• What does it cost to set up utility services in your new place? Water, power, gas, mail, phone/cell phone, cable, internet, sewer, trash collection, recycling collection.
• If you have kids, what does it cost to enroll them in a new school? How about extra-curricular activities like sports teams?
• What will it cost to terminate any existing utility contracts in your current location? How about health club contracts? Do you have any other long term contracts you'll have to cancel like landscaping, snow removal, day care, food/diet programs, classes or cleaning services?
• Will you need to get new license plates for your car? A new driver's license? A new city parking sticker?
• Will you need to change banks? How much do you need to set aside to open a new account? Do you have any payments from your current bank account that haven't cleared yet?
• How about pets? Do you have pets that require special licenses from the city? Do they need to be quarantined or inspected by a vet? Will they need to be kennelled during your move?
• Do you receive benefits such as health insurance or SSDI from your current state or town? What is the time and cost associated with transferring those to your new location?
• Do you have any prescriptions or medical care arrangements that will need to be transferred? What will that cost?
• While moving fees can be deducted from your income tax, food costs are not considered part of moving costs. Do you take itemized deductions from your income tax? Can this help you at all? If so, can you be meticulous enough with your receipts to make it worth the effort?

Lost Income

• How many work days will you and your roommates have to miss in order to move? (Add at least a day for recovery if you're doing your own lifting.)
• If you have to pay extra rent to your landlord up front to offset a weak rental history, how much will you lose in interest by doing so?
• If you plan to tap into your retirement funds to afford your move, what will you lose in growth by doing so? Will you have to pay taxes for an early withdrawal from the account? (Note: We do not recommend doing this, but we know some people have no choice.)

Deposits

• How much money is your landlord holding in the form of refundable deposits? (Don't forget about pet deposits!)
• How long does it take your current landlord to return any deposits they're holding? (In Chicago expect to get it back 45 days after you move out.)
• Are you breaking your current lease? What are the fees for that? Will they be deducted from your deposit?
• Do you owe any back rent or late fees to your current landlord? Do they exceed your security deposit?
• How much damage has been done to your current apartment? Will it cost a lot to repair? That will come out of your deposit, and any excess could be charged back to you. Note that you may have caused extensive damage that you can't see. Cleaning up after a heavy smoker, for example, can cost far more than one month's rent.
• Is your current furniture rented from your landlord or an outside company? If so, is any of that furniture damaged in any way? What deductions could be taken from your deposits for those items?
• If you wind up in a dispute over the return of your deposit, how much will it cost to pursue it through the court system?
• Have you made any major alterations to your current place that you will need to restore after leaving?

Help us make this list the most extensive moving cost checklist on the web! Have unexpected moving costs ever caught you by surprise? Did we miss anything that could be a big budget buster in an apartment move? Let us know in the comments and we'll add it to the list! Make sure to share this with your friends who might be moving this month as well!