Understanding Lease Agreements: What to Look Out For
A lease agreement is a legally binding contract between a landlord and a tenant outlining the terms and conditions for renting a property. Understanding the key terms can help ensure that you are not taken advantage of by your future landlord.
With this article, you can learn to understand lease agreements in less than 5 minutes. You will also be given insight into common tactics used by landlords to take advantage of their tenants.
Key Terms to Understand Lease Agreements
Lease term
The length of time the lease is in effect, typically measured in months or years. Common lease terms are 6 months, 12 months, or longer.
Rent
The amount of money the tenant must pay the landlord, usually on a monthly basis.
Security deposit
A sum of money paid by the tenant to the landlord to cover potential damages or unpaid rent. This deposit is usually refundable at the end of the lease, minus any deductions for damages or unpaid rent.
Late fees
Penalties imposed on the tenant for not paying rent on time.
Maintenance and repairs
Specifies who is responsible for maintaining and repairing the property, as well as the procedures for requesting repairs.
Utilities
Services like electricity, gas, water, and internet. The lease should clarify who is responsible for paying for each utility.
Renters insurance
Insurance that covers the tenant's personal property in case of damage or theft. The lease may require the tenant to obtain renters insurance.
Subletting
The practice of a tenant renting out all or part of the rented property to another person. The lease should specify if subletting is allowed and under what conditions.
Pets
The lease should state whether pets are allowed and if there are any restrictions, such as breed or size.
Rules and regulations
The lease may include specific rules and regulations the tenant must follow, such as noise restrictions or parking rules.
Lease renewal
The process for extending the lease beyond its original term. The lease should outline the conditions and procedures for renewal, if applicable.
Termination
The conditions under which the lease can be terminated by either party. This section may include notice requirements, penalties, and the process for resolving disputes.
Eviction
The process by which a landlord can legally remove a tenant from the property. The lease should outline the grounds for eviction and the procedures to be followed.
Right of entry
The lease should specify the conditions under which the landlord can enter the rented property, such as for inspections or repairs.
Alterations
Specifies whether the tenant is allowed to make changes to the property, such as painting or installing fixtures, and if so, under what conditions.
Understanding these key terms will help you navigate your lease agreement and protect your rights as a tenant.
What to Look Out For: Common Tactics
While many landlords are honest and fair, some may try to take advantage of tenants through various tactics. Here are some common tactics to watch out for:
Hidden fees or costs
Some landlords may include vague or hidden fees and costs in the lease, such as administrative fees, maintenance fees, or penalties that are not clearly defined.
Overcharging on security deposit
Some landlords may charge a security deposit that is significantly higher than what is legally allowed or reasonable for the property.
Rent increases
The lease may include clauses that allow for unexpected or excessive rent increases during the lease term, or upon renewal.
Unfair utility charges
The landlord may try to pass on the responsibility of paying for utilities that should be their responsibility, or charge excessive amounts for shared utilities.
Ambiguous maintenance and repair responsibilities
Some landlords may write vague clauses about maintenance and repair responsibilities, leaving tenants unclear about who is responsible for what.
Unenforceable rules and regulations
The lease may include rules and regulations that are unenforceable, unreasonable, or violate local laws.
Restricting tenant rights
The landlord may include clauses that restrict the tenant's legal rights, such as the right to withhold rent for unresolved maintenance issues or the right to a refund of the security deposit.
Illegal eviction threats
Some landlords may include illegal eviction threats or procedures in the lease, such as evicting a tenant without proper notice or due process.
Waiving landlord responsibilities
The lease may include clauses that attempt to waive the landlord's responsibilities for maintaining a habitable property or resolving issues that affect the tenant's safety or health.
Inadequate notice periods
Some landlords may include shorter notice periods than required by law for rent increases, lease terminations, or entry to the property.
To protect yourself from being taken advantage of, make sure to read the lease agreement carefully and understand all its terms and conditions. Consult with a lawyer or a tenant advocacy organization if you have any concerns.
Additionally, familiarize yourself with the tenant rights and landlord responsibilities outlined in your local and state laws, as this can help you identify any unfair or illegal practices in your lease.