Nowadays, renters have more choices when looking for accommodation. They can choose from small multi-family homes, courtyard-style residences, high-rise apartment buildings, privately owned single-family homes, or houses specifically built for rent (Build-to-Rent, BTR). However, these options often come with a “hidden cost”: maintenance and insurance fees.
According to a recent report by Realtor.com, there are significant differences in these additional expenses between traditional apartments and standalone rental homes.
One of the crucial factors to consider before signing a lease is utilities such as water and electricity costs. Standard apartments (whether courtyard or high-rise) typically include heating and hot water, and sometimes even electricity in the rent; however, if renting a privately owned single-family home or a house in a BTR community, the rent may or may not include water and electricity costs.
Stacy Brown, Training Director of Real Property Management (a leasing management company under Neighborly), told Epoch Times that most traditional apartment communities still require tenants to cover their own water, electricity, internet, and cable TV expenses. She also mentioned, “We are increasingly seeing some properties charging tenants additional fees, such as trash collection, parking permits, or facilities like pool and gym usage fees.”
Additionally, tenants may be held responsible for damages beyond normal wear and tear, such as damaged blinds or holes in walls.
According to the Realtor.com report, apartment tenants typically bear minor costs like unclogging toilets, drains, replacing light bulbs, or cleaning air filters. However, for larger issues like plumbing failures, appliances, heating, ventilation, and air conditioning (HVAC) systems, or pest control, these responsibilities usually fall on the landlord. Landlords are also responsible for maintaining common areas such as elevators, lobbies, or hallways.
In the case of renting single-family homes, the allocation of responsibilities between tenants and landlords may be different, especially depending on whether the property is a privately owned residence or part of a BTR community.
The report highlights that when signing with individual homeowners, tenants may be responsible for more minor maintenance tasks such as lawn mowing, leaf raking, snow shoveling, trash disposal, and recycling. In some cases, tenants may even be accountable for further maintenance tasks like clearing drains, replacing smoke alarm batteries, or pool maintenance. If the property is part of a homeowner association (HOA) managed community, landlords may transfer the monthly HOA fees to tenants.
Despite this, most private landlords are still responsible for major repairs like roof leaks, HVAC damages, plumbing or electrical system failures.
Having over 30 years of real estate management experience in large apartments, multi-family and standalone communities, homeowners associations, and commercial real estate property management, Brown pointed out that BTR communities offer tenants a hybrid experience. These professionally managed communities typically cover comprehensive maintenance services including landscaping, pest control, and regular HVAC maintenance. Appliance repairs and interior maintenance are usually handled promptly by on-site maintenance staff.
However, like traditional apartments or private residences, tenants in BTR communities often still have to cover water, electricity, internet/cable TV, and facility usage fees.
Regarding insurance, cost disparities can also be significant. The Realtor.com report notes that whether renting a studio or a multi-bedroom standalone home, renters’ insurance is highly recommended.
Renters insurance usually covers personal belongings inside the rental property such as furniture, clothing, artworks, etc. JoAnne Murray, Owner and President of Allan Block Insurance Company, told Epoch Times, “Whether renting an apartment or a house, the contents of renters insurance policies are actually quite similar. Renters insurance protects all the items you move into the home with.”
The insurance company located in Tarrytown, New York, has been operating for over 65 years in the area. Murray emphasized that liability insurance is essential for both homeowners and renters. “Liability insurance covers situations like tenants forgetting to turn off the bathroom tap, causing damage to the unit below.” Murray added, “We often see cases where someone forgets to extinguish a candle, resulting in damage to their own room and the neighbor’s room.”
She noted that nowadays most landlords require tenants to purchase liability insurance before signing a lease.
“In fact, liability insurance is even more critical for those living in large apartment buildings because the potential loss scope is greater,” she added, mentioning that some landlords even require liability insurance coverage as high as $1 million. Liability insurance also covers claims related to slip and fall injuries in your apartment or property, and damages caused by pet bites.
Regarding other situations like electrical faults or dishwasher damages, Murray mentioned that these are typically landlords’ responsibilities. “These sudden situations are unpredictable.”
Insurance costs are usually calculated based on tenants’ credit scores, so even if living in the same-sized apartment or house, the costs can vary significantly.
According to the latest “National Rental Trends Report” released by the Dwellsy rental platform, standalone home rents have had a compound annual growth rate of 5.56% over the past five years.
The report analyzes market data of over 16 million single and multi-family homes in the U.S. between 2020 and 2025, focusing on rental changes of three-bedroom standalone homes and one-bedroom apartments.
It indicates that the demand for standalone homes during the pandemic surged, then experienced a cooling-off period, followed by gradual adjustments. In comparison, the multi-family apartment market remained relatively stable during the pandemic, but rents are now slightly lower than in 2020.
Regardless of the chosen property type, Brown reminds tenants not to assume that all expenses are included in the rent.
“Especially in private home rentals, tenants may have broader responsibilities, so it’s best to set aside $250 to $500 as emergency funds for unexpected minor expenses during the lease term,” she said. “Consider it as an emergency fund, not for structural damages, but for those unforeseen minor expenses.”