Understanding Your Lease

What is a Lease?

Definition:

A lease is a legal contract between a landlord and tenant that outlines the terms and conditions for renting a property. A lease serves as a binding agreement that protects the rights and interests of both parties throughout the rental period.

A lease typically includes the following information:

Names of the landlord and tenant
Address of the rental property
Lease term, including the start and end date
Rent amount, payment schedule, and late fees
Security deposit amount and terms for its return
Maintenance and repair responsibilities for the landlord and tenant
Lease termination or eviction details
Rules or restrictions for the property, such as quiet hours, parking, or pet restrictions

Lease Options

Length of lease

Fixed term: This option guarantees tenancy for a set period of time, and the tenant is responsible for paying rent for the entire lease term. The rent amount and terms of the contract cannot be changed during the lease term.
Month-to-month: This lease automatically renews every month until either the tenant or landlord decides to cancel it, providing more flexibility for both parties. Rent amounts and other terms can be changed with proper notice, subject to local regulations.

Transferring a lease:

A tenant who wishes to leave their lease early may be able to avoid or reduce lease breakage fees by subletting or re-letting.

Subletting: When a tenant allows someone else to rent their apartment for a short period, with the subtenant paying rent to the original tenant instead of the landlord. The original tenant is still ultimately responsible for paying rent and following the lease rules. Subleasing is only allowed if the lease agreement or landlord allows it.
Re-letting: When a tenant wants to end their lease early and find a replacement tenant with the approval of the landlord. The original lease is terminated, and the new tenant signs a new lease with the landlord. The new tenant is now solely responsible for paying rent and following the terms of the new lease.

Leasing with a roommate:

Joint leasing: All roommates sign a single lease agreement and are jointly responsible for rent and following the lease terms. If one roommate doesn't pay their portion of the rent or breaks the lease, all roommates are held responsible.
Individual leasing: Each roommate signs their own separate lease agreement and is only responsible for their own rent and following the lease terms. If they don’t pay rent or break the lease, they are held solely responsible.

Before You Sign

Read everything

It's important to understand that a lease is a legally enforceable agreement, and you could find yourself in a predicament later if you fail to abide by the terms. Before you sign, take the time to read and understand the entire document. If there is anything you don’t understand, ask about it!

Check for illegal provisions

A lease cannot include the following provisions:

Withholding a refund of prepaid rent or deposit without any valid reason
Charging late fees that exceed 10% of the monthly rent
Filing a lawsuit or claims against tenants without prior notification
Evicting tenants or terminating rental agreement without proper notice
Permitting the landlord to switch the locks or otherwise denying entrance to the property if the tenant is late paying rent
Permitting the landlord to keep the tenant's personal property if they are late on rent or evicted.
Prohibiting tenants from defending themselves in court if they are sued or evicted

Negotiate

Renters often believe that the landlord’s offer is nonnegotiable, but that may not be the case. Before you sign, make sure the agreement addresses all your needs and concerns. When reading the agreement, cross out sections with which you do not agree and discuss them with the landlord. Some common things you can try to negotiate are:

How you pay your initial deposit – Sometimes landlords will allow you to break the deposit into smaller, more manageable chunks over time.
Making minor cosmetic changes - If you’re someone who really wants their space to reflect your style, you can try to negotiate for permission to make some changes to the space, such as changing the paint color.
Moving dates – Landlords are often flexible about move-in/move-out dates and the length of your lease.
Lawn care – If you are moving into a house, you may be able to negotiate whether you are responsible for landscape maintenance or if that’s something the landlord will hire someone for.

Ask Questions

Application

Are you required to submit an application?
Is there a fee to apply? Is the fee refundable?
What are the income requirements?
Do you need a reference?
Do you allow for cosigners?

Rent

What is the cost of the rent?
When is the monthly due date? Is there a grace period?
Is there a penalty for late rent?
Are the first and last payments pro-rated?

Security deposit

How much is the security deposit?
When is the security deposit due?
What are the conditions for return of the security deposit?
When will the security deposit be returned?

Additional costs

Are utilities included in the rent?
Are pets allowed? If so, is there an additional fee or deposit?
Are there any other additional fees?
Is there a fee to terminate the lease early?

Time of occupancy

When are the move-in and move-out dates?
How long is the lease?
How much time is required to renew my lease?
How much time is required for notice of moving out?

Roommates and subleasing

What is the maximum number of roommates?
Do all roommates sign the same lease, or are they separate?
Is subletting allowed? If so, must the landlord approve a sublease?
Is there a fee to sublet?

Right of entry and inspections

How much notice will be given prior to entering or inspecting the property?
Who else is allowed to enter the property?

Repairs

Do you provide a move-in checklist for me to document any needed repairs?
How long does it usually take for a response to a maintenance request?

Parking

How many parking spaces are available per unit, if any?
Can we purchase extra spots for additional roommates?
Where do guests park?

Laundry

Are laundry machines provided in the unit? Is there a fee?
Is there a laundry room on the property?