Understand and Learn More about Leases
Article by: Becky Loker
Apartment Lease Definition
An apartment lease is a legal document between a resident and property owner/management company that will tag and implement every aspect of your relationship with the property owner/management company. A lease is a written agreement that once signed by both parties is a binding contract.
Understanding Your Lease
Before you sign the lease it is important to read it and understand it thoroughly. If you don’t understand any portion in the lease, ask questions before signing it! Not all leases are the same; you should not assume that you know the terms and conditions of the lease until you have read it.
A lease will contain terms and conditions that are the responsibility of the property owner and resident. After signing this lease agreement, you are contractually binded to the conditions of this lease; therefore, knowing your lease terms will help you manage your life’s occurrences should a need or desire for moving arise.
Sometimes reading over a lease agreement can be confusing and frustrating. The agreement is often packed full of legal jargon that is not familiar to everyday conversation. In an effort to make the legal lease jargon more understandable, we have provided you this lease definition cheat sheet to make the apartment lease signing experience more understandable.
Lease Information
A lease can contain several types of information and it is essential to read it through to fully make sure you understand it. Below you will find some, but not all, of the items a lease will cover to help you prepare for the review of you apartment lease.
Lease Term: The majority of apartment leases are for one year. Sometimes you can negotiate a lease for a shorter term if the property offers shorter term leases. You are responsible for paying rent for the from the start date to the end date of your lease term. During this time a property owner cannot rent the apartment to another resident. At the expiration of your original lease term, your lease may have a month-to-month lease clause written into the agreement. Often the month-to-month lease clause may increase your monthly rental rate. Although the month-to-month rate may increase your rental rate, it can add flexibility to your moving needs. The cancellation clause always has time requirements for a written notification of a certain time period before you plan to move out. Read your lease agreement before submitting notice to move out to determine the proper time frame. It is common to have a 30 or 60 day written notice required to move out.
Monthly Rent: The lease agreement will state how much and how often your rent is due. Most apartment leases require monthly rent payments. It is important to pay your monthly rent on or before the due date. Paying your rent on time helps you establish a good credit rating. Establishing your credit rating will help you with future loans and credit.
Security Deposit: The lease agreement will almost always require a security deposit before you move in. This security deposit is requested to financially cover the cost of repairing any property damage caused by you during your lease. You should understand fully what the security deposit covers in damage and the conditions that apply to a refund. Make sure to note in writing any scratches, repairs and/or damages in writing and/or take digital photographs on your walk through before your move in day.
Some states require your security deposit to be entered into a separate interest bearing account and then return to you interest on the security deposit while you reside at the apartment community. The lease agreement should also stipulate when the security deposit will be returned to you upon move out.
Community Guidelines: Rental communities often have a set of guidelines that are detailed in the lease. These are created to ensure that everyone co-habits peacefully and considerately. Read these and make sure that you can comply with these guidelines. If you violate the community’s guidelines, you could receive a notice to move out.
Additional Fees and Information: Often the community requires additional fees for specific features for living at the community and utilizing certain amenities, such as parking and storage. The lease agreement will state which utilities, if any, you are responsible for. All the names of the people renting the apartment should be on the lease. The lease contractually obligates all those on the lease and will ensure that everyone living in the apartment assumes proper responsibility. The address of the apartment you are renting will be on the lease.
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