Before you commit to a new apartment or house, you want to carefully review the lease agreement. A lease is a legally binding document that outlines the rights and responsibilities of both the landlord and you, the tenant. While the specifics of a lease can vary from one rental unit to another, there are some key provisions you should look for in any agreement.
Here are critical things to look for in a lease agreement before signing:
1. The Parties Involved
First things first: you want to ensure that the lease agreement lists the correct names of the landlord and tenant(s). If you’re applying to rent an apartment with a roommate, ensure that your names are both on the lease and that the names are spelt correctly.
2. The Term
A lease term typically refers to the length of your rental agreement, whether it’s monthly, quarterly, biannual, or annual. The lease term is essential for clarity and planning purposes. For example, you’ll want to know if the lease is automatically renewed or if there is a mandatory lease renewal clause. You’ll also want to see the date the lease term begins and ends and the specifics of the move-in and move-out dates.
3. Rent Amount and Payment Schedule
The lease agreement should clearly state the amount of rent due and the payment schedule. This includes the date(s) rent is due each month and the accepted methods of payment. Sometimes, landlords will charge a late fee if rent is not received on the date due, so check for any related lease clauses.
4. Rental Provisions
This section covers questions you likely asked before signing, including whether pets are allowed, how utilities are handled, and if there are noise restrictions. Both you and the landlord should agree on and understand these everyday aspects of living in the rental unit.
5. Alterations and Improvements
Most leases include clauses that outline what changes you can and cannot make to the rental unit. For example, the landlord may explicitly state that nails cannot be put in walls belonging to the unit. This clause may also include whether you can paint the walls or hang artwork using command strips.
6. Maintenance and Repairs
Before you sign, you’ll want to know who is responsible for fixing a leaky faucet or a running toilet. Many lease agreements include a clause that explains how maintenance and repairs are handled, and this often includes a provision that details how the landlord is notified of a problem.
7. Parking and Common Areas
If your rental unit comes with a parking spot or a reserved parking area, make sure that this is outlined in the lease as a reserved fixture. If there are any common areas, such as a backyard or a balcony, understand whose responsibility it is to maintain these areas and what constitutes acceptable use.
8. Insurance and Liability
It’s wise to understand what your liability is when it comes to getting renter’s insurance. Often, a lease agreement will state that the tenant is required to obtain renter’s insurance that meets specific criteria. Such criteria may include the landlord being added as an additional insured party.
9. Subletting and Occupancy
It’s a good idea to understand if you can sublet the unit before signing the lease. You might need to move out before the lease ends, after all. If subletting is permitted, there should be specifics, including approval deadlines and processes, and any fees involved with finding a subletter.
10. Termination and Lease Break Fees
Understand what it takes to break a lease and what fees are involved, should you need to leave before the lease term is over. Fees may include compensating the landlord for the time left on the lease or loss of rent if they need to find a new tenant.
11. Dispute Resolution
While no one wants to think about disputes arising, knowing how they will be handled if they do is important. Many lease agreements include a paragraph that states the preferred process for tackling disputes. This may involve mediation, arbitration, or small claims court, depending on your location.
12. Lead-Based Paint and Other Hazards
For rentals built in 1978 or earlier, there should be detailed information about lead-based paint on the property. You can also check for other hazard disclosures, such as asbestos or carbon monoxide.
13. Changes to the Lease Agreement
Sometimes, a landlord may unexpectedly sell the property, or an owner may decide to sell the unit to a new landlord. While this isn’t always predictable, it doesn’t hurt to ask about future changes.
14. Helpful Clause Additions
Several additional clauses can help protect you as a tenant and improve the terms of the lease. These might include:
– A military clause: If you’re in the military, this clause allows you to terminate the lease if you receive orders elsewhere.
– A severe weather clause: In regions with frequent hurricanes or tornadoes, this clause allows you to break your lease if your home sustains significant damage.
– A pandemic clause: While less common, some leases include a pandemic clause that addresses what happens if the pandemic significantly affects your ability to pay rent or forces you into quarantine.
If any of these inclusions are important to you, consider asking if the landlord will consider adding them to the lease.
Finally, before you commit to a lease, take the time to review it carefully. Don’t be afraid to ask questions if you don’t understand a provision, and ask your landlord to clarify any confusing parts.
Knowing what to look for in a lease agreement can help you avoid headaches and disputes down the road. Happy renting!
