Before You Sign: What Tenants Should Know About Lease and Rental Agreements

Your lease or rental agreement is a legally binding contract between you and your landlord. It’s the cornerstone of your relationship with your landlord. Before renting a house or apartment, you should read your agreement thoroughly. Ask questions about anything you don’t understand.

This FindLaw article explains some concepts about lease and rental agreements. Learn about important lease terminology and what to look for before signing a lease agreement. 

A lease is a legal contract. Make sure you know what you’re signing. Consult a local landlord-tenant attorney for help. They can explain lease terms, spot illegal clauses, and negotiate terms that may not serve you well.

Understanding Leases and Rental Agreements

Before looking for a new house or apartment, you should understand leases and rental agreements. These two terms are not synonymous. Lease agreements typically cover a fixed term for one or two years. Rental agreements usually cover shorter-term periods, like a month-to-month lease.

The terms of the agreement should clarify your rights and responsibilities as a tenant and the landlord’s rights and responsibilities. For example, as a tenant, you must pay rent on time. Your landlord must ensure that your rental unit meets the local standards for the warranty of habitability.

Your lease or rental agreement is a legally binding contract, so you should understand your agreement before you sign.

Types of Leases

The type of lease you sign depends on how you intend to use the rental property.

If you plan to live in the rental property, you will likely sign a residential lease or rental agreement. If you plan to rent a commercial property for business, you will likely sign a commercial lease agreement. This article focuses on residential lease agreements. 

Reviewing Lease or Rental Agreement Terms

It’s essential to understand the different terms your landlord or property management company may use in a residential lease. These terms include, but aren’t limited to, the following:

• Names and contact information of the landlord and all tenants
• Security deposit amount
• Duration of tenancy
• Amount of rent
• Due date for monthly rent payments
• Instructions on how to pay rent
• Late fees for late rent
• Pet policy
• Occupancy terms (how many people can live in the rental property)
• Sublet instructions
• End date of agreement
• Disclosures for mold or lead-based paint
• Conduct that may trigger an eviction

Read the lease carefully in case additional restrictions apply. For example, some landlords won’t allow smoking in the unit or may restrict noise levels.

Review the Agreement for Red Flags

Review your rental application and proposed lease for any red flags. For example, federal and most state laws prohibit housing discrimination and ban discrimination in renting, selling, or financing real estate. The federal Fair Housing Act prohibits discrimination based on one of the following protected characteristics:

• Race
• Religion
• Ethnicity
• Gender identity or sexual orientation
• National origin
• Familial status
• Physical or mental disabilities
• Age

Security Deposit

Pay close attention to any information regarding your security deposit. Many state laws regulate how much a landlord can ask for a security deposit. State laws also determine the time frame within which your landlord must return your security deposit. Security deposits give landlords financial assurance against any damage to the rental unit.

Before you move out, check your rental lease agreement for instructions. Typically, tenants give their landlords or property managers a 30- or 60-day notice of their intent to vacate the rental unit.

Before you leave, you should arrange a move-out inspection to ensure there is no damage. Many renters include this request in their written notice. If you can’t arrange such a meeting, take pictures or a video of the rental unit after you’ve cleaned it. Landlords can only deduct for actual damage, not normal wear and tear. Normal wear and tear includes faded marks on a carpet or broken blinds.

Changing the Lease

At some point during your tenancy, you may need to change the lease terms. For example, if one of your roommates moves out, you may need to replace them on the lease. Or you may need to sublease your rental unit.

The best approach is to ask your landlord to make these changes. Many landlords will allow these changes for a fee.

If you want to change one or more lease terms significantly, make the request in writing. That way, your landlord can consider the request without pressure to respond immediately. A written request will also help clarify what you want to change about the lease.

If the landlord or property manager agrees, work with them to create a new lease with the relevant provisions changed.

Breaking the Lease

Breaking a lease is more than a massive inconvenience for the landlord and tenant. It is a breach of contract, which means you’re likely responsible for paying rent for the rest of the lease.

But any party to a contract has a duty to mitigate. This means the landlord must find a new tenant as soon as possible. Renters typically are not responsible for rent after a new tenant moves in.

If you need to break your lease, tell your landlord as soon as possible. This gives them time to find a new tenant and may reduce your damages.

Your landlord likely can’t change the lease without your consent. If they do, it’s a breach of contract.

Breaking a lease can have serious implications on your rental history. Don’t go about it lightly. Find local legal help.

Signing a Lease? Legal Help Is Available

In most situations, you don’t need an attorney to review a lease agreement before you sign. But certain situations benefit from a lawyer’s expertise, such as signing a long residential lease or a high-value commercial lease. A lawyer can ensure the terms are in your best interest and spot any issues you may want to negotiate with the landlord.

Get help reviewing your lease or rental agreement and get sound legal advice today. FindLaw’s directory of landlord-tenant lawyers can get you started. Because your state’s laws are relevant, your attorney should be licensed in the state where the rental property is. Enter your city or ZIP code for a list of legal professionals in your area.