What to Know when Signing a Lease
Double Check the Lease Agreement and the Renting Terms:
The two most important aspects of any rental agreement is the duration of the lease and the type of lease itself. These are important factors that will affect when and how much you pay for rent. For example, is the type of lease month-to-month or a fixed-term lease? If it's month to month, you should expect to pay more because the landlord is risking the possibility of tenants leaving early. Under this type of lease, tenants can leave as long as they provide 30-60 day notice and will face no fees. Moreover, your security deposit may be higher and the landlord will be able to increase your cost of rent throughout the months. On the other hand, a fixed term agreement is when you agree to pay for the duration as stated on the lease. Your rent will not increase and will be fixed, hence the name. However, if you leave during a fixed term agreement, you are more at risk of violating your leasing agreement and losing your security deposit and incurring early leave fees which are usually higher than if you break a month to month lease.
Important Things to Look for On a Lease Agreement and Ask Your Landlord About
Do tenants require renters Insurance? Renters insurance helps protect damage to your belongings in the case of theft, accidental damage or if someone is injured in your home. Most landlords nowadays will require you to have a valid form of renters insurance, however this can vary.
Termination clause
Does a guarantor need to be present to help sign the lease in the case of a student?
If you are a student or have poor credit score, some landlords will require you to sign with a guarantor. A guarantor is someone who adds credibility to your action of signing the lease. This most often includes a parent who signs with your landlord to help add credibility.
Noise restriction rules
Are pets allowed?
Options to renew the lease
Is subletting allowed? Subletting is when a tenant subleases their property to another tenant, known as a subtenant. The sub tenant pays fees to the tennant while he or she is away from their property for an extended period of time. Some landlords prohibit subletting while others allow it. It is always important to speak with your landlord regarding subletting if it is not stated clearly on the lease.
How is maintenance handled? Is it 24/7 or by request? Remember repairs are the responsibility of the landlord. However, tenants are required to report all appliance problems immediately.
Make Sure You Have Required Documents Before You Sign:
Most landlords will require you to show a valid proof of ID before you sign the lease. They will also want proof of employment and verify that your income will be able to meet the monthly rent. Furthermore, if you are a first time renter, some landlords will request that you provide a letter of reference from a trusted person who can vouch for you.
After You Signed the Lease:
Take a picture of your lease to remind you of the terms and conditions. You should also request a copy to keep on hand through your landlord. Additionally, if you have renters insurance, take pictures of everything, including appliances, utilities and your belongings. This will allow you to provide documentation to your landlord and insurance agent in the case that damage is caused to the property or your belongings are stolen.
