Understand Your Lease Before Signing It

Signing a lease for a new apartment can be very exciting — and intimidating. You’ll be better equipped to read the lease and catch anything that doesn’t make sense, if you know what to expect. Here are some tips on what can be found in a typical apartment lease.

Who signs the lease?

Every lease is a contract, and as such will name the people who have entered into the contract and are legally bound by it. That should be your landlord, yourself, and any roommates you might have. Any roommate whose name doesn’t appear on the lease isn’t legally liable for rent; if you take on a new roommate after the lease has been signed, you might want to ask the landlord to issue a new lease.

The basics

The landlord should include information about who manages the rental property, including address and phone numbers. The lease should also identify which property is being rented. The lease should also include the specified monthly rent and the amount of the security deposit. It should specify when a rent payment is considered late, and what the penalties are for late payment. It should specify that it applies for a given length of time (say, 12 months) and spell out what happens when one party or the other decides to terminate the lease early.

Some leases will specify how far in advance you need to notify the landlord you need to renew; some will default to a “month-to-month” agreement after the original term runs out. You’ll want to know this well in advance of deciding whether or not to renew.

The lease should include information on penalties if you break the lease, as well as whether you would be able to sublet or find a new tenant if you have to leave, and whether there is an “automatic renewal” clause, in which the lease is renewed unless you give notice by a certain date.

Who fixes what?

Your lease should indicate who is responsible for repairs. Frequently leases make tenants responsible for minor repairs and landlords responsible for major ones, though this may differ depending on your rental management company.

Other items

Your lease may, or may not, include details on the following:

•Pet fees: Many apartment communities require an additional security deposit or rent to have a pet on the property.

•Utilities: You and your landlord should already have agreed on what utility payments you will be responsible for.

•Modifications: The lease may specify that you cannot make significant changes to the property, including painting, replacing carpet or floors, or knocking out walls. If you really want a change to the apartment, you might be able to negotiate this ahead of time. Make sure that any repairs or modifications you agree on verbally are written down in the lease.

Signing the lease

Take the time to read your lease thoroughly and carefully because once you sign, the terms are legally binding. If you don’t understand a clause, ask for clarifications. If you want to make or request changes to the lease, both you and the landlord should initial them.

Save a copy of the final lease signed by you and the owner or manager. This document is the most important document to help you if there’s any disagreement about the apartment or anything related to it.