Being a first time renter is tricky and challenging, because you always want to focus on making things right and protecting yourself from any challenges. What you need to keep in mind as someone renting for the first time is that lease agreements are a legally binding contract. Once that’s signed, you need to follow the rules, otherwise you will have to deal with the legal consequences.
What’s the role of lease agreements?
At their core, these lease agreements are a contract between the tenant and the landlord. They outline the terms of stay, including the amount of rent you will be paying, how much time you are allowed to stay, the things you are allowed to do and what you can’t do in that space, who is responsible for maintenance and repairs, but also what happens if you’re breaking the rules in any way.
The difference between month to month and fixed term leases
Before signing the lease agreements, it’s important to understand the difference between these two options. If you go for a month to month lease, the lease renews every month, and you have the flexibility to move within just 30 days. On top of that, rent can increase at any given time, and landlords can terminate the contract within just a month.
For a fixed-term lease, that usually means you have a fixed timeline for the contract. You are legally bound to rent for 6 months, a year, or maybe more. The upside here is that rent is locked for the duration of the contract, and you have a fixed price. However, if you choose to break the contract, that means you will face penalties. So yes, there are ups and downs to both lease options.
What lease agreement sections should you focus on?
The lease agreement does have quite a lot of sections that you should read. Realistically, some of them are very general, but there can be sections which are very specific, and it’s a good idea to check them out. With that in mind, it’s very important to consider these sections:
- Rent due date and rent amount matter quite a bit, since these will show when you have to pay your rent, how much it costs and so on. Usually, this section of the lease agreement tends to have a grace period, so keep that in mind.
- In the security deposit section, you want to know the exact amount and also how it will be stored, if it can get returned and so on. You need to learn what deductions the landlord can make if there are damages or any issues like that.
- Another section you want to check would be the additional costs and utilities. You need to see what utilities are included in the lease, if any. The section should also clarify any shared expenses, including HOA fees, trash collection, etc.
- What should you know about repairs and maintenance? In some cases you have to notify the landlord, other times you will be the one responsible for any repairs yourself.
- If there are any alterations to be made, you obviously want to know the rules. Generally, most leases will not allow you to install a new lock, place shelves or paint walls without any kind of permission, so that’s certainly something to keep in mind here.
- Usually, the lease agreement should also have another section on guests and subletting. Here you will know what exactly you are allowed to do, if subletting is ok or not, etc.
All these rules and pieces of info are important, as you always want to make sure you know all the lease agreement requirements. Not all of these lease agreements are the same. That’s why it’s incredibly important to know the ins and outs when it comes to terms, as that will make the process much easier to handle.
Important lease terms you need to know
What’s important to keep in mind about these lease agreements is they have specific terms that can indeed be very important. Premises would include the rental property, parking spaces, but also amenities, so that on its own is very important. The quiet environment is the right to use this property without interference from the landlord.
Then, we have the right to entry, which is the landlord’s ability to enter the property with 1-2 days of notice. And then we have the Default, which is a failure to follow lease terms, and not paying the rent on time.
What red flags can you find in a lease agreement?
You should keep in mind the fact that lease agreements can sometimes be a little or very much biased towards the landlord. That’s the reason why you always want to read the agreement and see all the info in there, before you agree to anything. Once you agree to that, you are legally bound, so that alone can be a problem.
- Some landlords tend to add extremely high late fees. You want to see when those fees start adding up, and all details regarding late payments.
- Also, another red flag appears whenever the landlord will force tenants to handle all the repairs. Usually, when that happens, it’s a bad sign, and it’s certainly something to avoid.
- Be aware that some landlords will have an automatic renewal clause, sometimes without notice. If you have that, then you have to address the situation wisely.
- Also, some landlords will mention certain restrictions verbally, and you’ll find a lot more in writing. Ideally, you want to talk with the landlord, see all the info about restrictions and so on, and then narrow down all the possible pros and cons related to this.
Negotiating for the first time
Naturally, when you sign the lease agreement, it makes sense to try and negotiate wherever you can. There are multiple things to focus on here, like asking for lower rent, requesting repairs before you move in, or adding clauses for your own protection. It makes a lot of sense to try and protect yourself as much as possible, as you avoid any possible issues or concerns.
Also, it matters to know your rights as a tenant. As we said earlier, some landlords take advantage of their tenants without the latter ones even knowing. So it helps a lot to learn how to negotiate, and also understand your rights. That alone can be incredibly important in the end.
Always make sure that you read the lease agreement and understand all the info related to it. After all, the more you know and the better you are prepared, the easier things will be. Yes, it most definitely has its downsides to not read the agreement, as you could have a negative surprise when you tackle certain challenges.
Conclusion
We believe it’s incredibly important to know the lease agreement and all of its rules before signing. That’s why this is one of those things you don’t want to rush signing right away. Instead, you need to take a lot of time and be patient. In the end, it will just provide you with a much better experience, and you can avoid many concerns or problems that arise. Rest assured that navigating the lease agreement and understanding all of its pros and cons will help you determine if this lease is the right one for you!