Lease Signing

Before You Sign

Once you have found the place you want, take a moment to review the Lease Signing Checklist to be sure you know you have included everything in the lease, and the lease clearly delineates the responsibilities for both tenant and landlord.  Read all of it very carefully.

Read It All - This is a legally binding contract!

You should always read any contract carefully, word-for-word before you sign it.  As a legally binding agreement, you will be obligated to follow everything that is stipulated in the lease.  If you don't read it, you may either give up a right or take on an extra responsibility without knowing.  The lease says more than the names of the parties involved, the location of the rental unit, and the details about the rental costs; it outlines maintenance, policies, early termination, various additional fees, specific responsibilities of each party, and many other key items.  It is the greatest tool both landlord and tenant have to hold the other accountable, provided the details are written in the lease.  So, take the time to be sure you understand it.  You absolutely have the right to have someone else read it too if you are unsure about what some things mean.  Don't sign it unless you feel comfortable with every word.

Lease Essentials - This what every lease must layout clearly.

It sounds pretty basic, but it is very important that these items are accurate and clearly listed in the lease to ensure there are no legal issues further down the road, including last minute substitutions or changes by either party.  The lease should clearly indicate:

• Term of the lease
  • with specific dates listed
• Total Cost of the lease
  • monthly amount also listed
• Parties involved
  • property owner, property manager, renter, and guarantor
    • contact details for all parties as well
• Property Location
  • unit # as well, if applicable
  • specific bedroom, if an individual lease
• Renewal Date
• Rent Details
  • due date
  • how payment should be remitted
  • late fees

Utility Set-up - Who does this and in whose name are they?

Since third party providers supply the gas, water, electricity, internet, and trash services, it is important to outline who will contact these companies to ensure the services are turned before (on) move-in day.  To "turn on" these utilities, there needs to be an account created in a person's name, tied to their credit record, and often requiring a deposit (and sometimes equipment).  Some properties maintain ownership of the utility and simply pass on the usage costs in some format to the tenant, while others require that the tenant do all of the set-up (and therefore payments) on their own.  Not only is knowing in advance important to ensure everything is ready for move-in day, it is also important as this will determine what extra upfront costs to anticipate (budget).

Security Deposit - There are specific laws about this.

Almost every property will have some sort of security deposit requirement, typically one month's rent.  The landlord must keep this money in a separate account and provide those details to the tenant.  This includes any pet deposit which should not be more than 50% of the rent.  The landlord must also return the deposit within 30 days after the move-out, documenting with a written, itemized list of deductions, if there were any.  While this is part of move-out, it is important to note that the tenant may (and should) request to be present at the time of the apartment's inspection to see first-hand what damages or lease violations warrant a deduction.  If there is any disagreement to the formal written notice by the landlord, the tenant must reply in writing, providing any evidence as well, within 7 days.

Extra Fees - there are always extra fees!

There are a lot of possible extra fees, so be sure that it is all clearly spelled out somewhere in the lease:

• Utilities
  • Electric, gas, sewer, water, internet, trash, and cable
• Pets
  • Rent vs Deposit
  • Increased costs for more than one
  • Different prices for different breeds
• Overnight guests
  • Usually only after so many days
• Repairs
• Maintenance
  • Air filters, HVAC inspections, etc.
• Parking
• Furnishings
• Cleaning
• Insurance
• Laundry
• Landscaping
• Subletting
• Early Termination
• Replacement keys
• Violation of policy fees
  • Guests, pets, grill placement, trash dumping, etc.
• Late Fees
  • Rent
  • Utilities
  • Key return
  • Move-out
• Transfer Fee

Insurance - what is "included" in fees?

Renter's Insurance is a good thing to have.  And many properties will require you to have some form of it.  So read the lease carefully to see what insurance may be included, to see what costs you are paying, and to see if there are any options to get your own coverage so that you have flexibility of what coverage you have.

Restrictions - there are always policies no matter where you live.

There are always rules and policies that identify actions and behaviors that are allowed and those that are restricted.  Be sure to clearly understand all of the conditions as you will be held accountable for whatever is in the lease.  Typically, these restrictions revolve around noise, smoking, drinking, drugs, guests, storage, pets, hanging items on the walls, painting the walls, parties, general conduct, and flammable items like grills, fireworks, etc., to name a few.

Maintenance - it can be expensive to keep a home running.

Most renters are unfamiliar with just how expensive it is to keep a home running.  In addition to the general rent and utility costs, there are a variety of maintenance costs.  From HVAC and plumbing to landscaping and light bulbs, there are a lot of tasks, purchases, and routine services that are needed to be sure everything stays working and pretty.  And this does not even include the maintenance repairs that are needed due to normal wear and tear which can be even more expensive.  Be sure the lease clearly outlines who is responsible for the routine, periodic, and emergency maintenance costs.

Early Termination - it is good to know the costs in advance.

No one in this lease agreement wants the tenant to leave early as it is expensive.  To further deter people from leaving early, landlords add additional early termination costs into the lease.  Be sure you know all of the costs and terms up front so that they cannot surprise you later.