Stepping into a new rental involves much more than just paying rent and moving in. It requires understanding the legal agreement that binds you and your landlord - your lease. This document is a contract that outlines your rights, responsibilities, and the rules you'll need to follow throughout your tenancy.
Whether you're about to rent your first apartment or are moving to another, grasping the nuances of your lease is crucial for avoiding potential misunderstandings and legal issues down the road.
Understanding Your Lease
A lease is a legal agreement between the owner of the property and the renter. It lays out the contract's terms and conditions and specifies each party's rights and responsibilities. For example, a lease will stipulate the rental price, any required deposits, the monthly due date, the length of the lease, and the consequences of breaking the lease. Leases may also cover other restrictions on the use of the property, such as whether or not pets are allowed, the number of people who may live there, and whether smoking is permitted.
You must read and understand the entire lease agreement before signing it. By signing the lease, you promise to adhere to the lease terms. Failing to read or understand the agreement is no excuse for any problems you may encounter later. Keeping a copy of the lease agreement is also important - it will help you understand your responsibilities (as well as your landlord's) in case of a dispute.
Applying for a Lease
Once you express interest in renting an apartment, landlords often perform a background check by accessing your credit and criminal history. This process helps to ensure that you will be able to pay the rent reliably. You may be asked to supply personal information such as a Social Security number and sign an application document allowing the landlord to access your employment history and credit report and check for criminal records. Landlords may be more hesitant to rent to someone with a history of missed payments and a lower credit score - another reason to manage your debt effectively.
If the landlord feels you cannot fulfill the lease agreement independently, they may ask for a cosigner. A cosigner is a person who meets the income requirement for the apartment and will share the financial responsibility for fulfilling the terms of the lease agreement. In other words, the cosigner agrees to make the payments if you do not. A cosigner is often, but not always, a family member.
Additional Financial Responsibilities
Many landlords require additional payments or deposits if your lease application is approved. If the lease terms are fulfilled, your deposit should be returned promptly - typically 30 days or less. Some states also require that interest be paid on the deposit.
If a landlord uses a property management agency, you may also have to pay a non-refundable fee to the agency. These fees are commonly equal to one month's rent.
Terminating a Lease
In many lease agreements, the renter must notify the landlord only if they plan NOT to renew the lease - otherwise, the lease auto-renews. When the lease is renewed, the landlord can raise the rent. It is up to the renter to determine whether the new lease amount is acceptable. If not, they can move at the end of the lease or attempt to negotiate the lease amount.
If you plan to move at the end of the lease, you must notify your landlord by the date specified in your lease agreement. There are typically no other responsibilities besides cleaning out the apartment and returning the keys. However, ensure the landlord has your new address so the security deposit may be returned.
Moving out before the end of the lease agreement is called "breaking" a lease. It is best not to break a lease - you could be responsible for the amount of rent unpaid for the entire term of the lease agreement, court and collections costs, and damage to your credit record.
Breaking a lease is not against the law. But it breaks a contract, and you will be responsible for the associated costs. On the other hand, there are many good reasons to break a lease, such as health, family, or employment changes. Renters may also break their lease if the apartment's condition is unsafe or the landlord is not providing required services such as heat or water.
If you must break your lease, it is best to tell the landlord immediately so you and the landlord can seek a new renter. In most cases, the landlord would rather lease the apartment to another tenant than enter a legal battle. But if you and the landlord cannot find a new tenant, you will be responsible for any unpaid charges and additional fees as specified by your lease.
Rights and Responsibilities
Renters and landlords have both rights and responsibilities in a rental agreement. The specifics of these rights vary from state to state.
In general, renters must:
- Maintain the unit by keeping it clean and disposing of trash properly.
- Avoid damage to the property beyond normal wear and tear.
- Use appliances properly.
- Monitor the condition of the unit and notify the landlord when repairs are needed.
- Follow local laws and regulations.
In general, landlords must:
- Maintain the property, making any necessary repairs.
- Ensure that the grounds are kept in a safe, clean manner.
- Supply cold and hot water for the unit unless other arrangements are specified in the lease.
- Give reasonable notice before entering the apartment, and avoid an unreasonable number of visits.
In case of a problem with your apartment, you must communicate the issue in writing to your landlord - preferably by certified mail. If you cannot solve your issue working directly with the landlord, it is best to contact a local lawyer for advice. In general, do not stop making rent payments before contacting a lawyer.
The Takeaway
By thoroughly reviewing the lease agreement, maintaining open communication with your landlord, and being aware of the legal obligations on both sides, you can ensure a smooth and hassle-free renting experience. Remember, being proactive and informed can prevent many potential issues and create a positive living arrangement for both you and your landlord.