How to Evaluate a Lease Before You Sign

It's all in the fine print! Read all the terms of your lease and make sure you understand everything before you sign.

Difficulty: Moderate

Instructions

Things You'll Need:

• Legal Counsellors
• Financial Calculator
• Paper
• Personal Organizers
• Writing Pens
• Paper

1. Make sure the lease covers the basic terms of your tenancy including the amount of rent and all payment terms, such as due dates, payment methods, late fees, grace periods and penalties, and the period of time for the lease (such as 1 year, 6 months or month-to-month).

2. Check to see if the lease spells out the responsibilities of both the landlord and tenant, such as who pays for utilities, taxes, maintenance and repairs.

3. Review the lease for specific policies about pets, subleasing, inspections, parking, running a home business or any restrictions on guests.

4. Evaluate the terms about security deposits, such as when the deposit will be returned and the conditions for a full or partial refund as well as the conditions of any nonrefundable deposits.

5. Determine if the lease requires advance notice of your intent to vacate the premises or the landlord's intent to enter the premises for safety or maintenance reasons.

6. Look for provisions about the conditions and procedures to end or break the lease.

7. Hire a local attorney to review the lease and verify that the document meets all state and local rental laws.

Tips & Warnings

• The terms of most standard leases may be negotiated with your landlord.
• A lease is a legal document - so paying an attorney to review the terms of your lease is money well spent.
• Landlord-tenant laws can be confusing and complex. Make sure your lease covers all the bases by consulting a local attorney.

on 11/22/2005 After you read and sign your lease, save your copy where you can get your hands on it in the future. You might need it for many reasons - including if you live in a multiple-unit building and others are not complying with the rules and bothering you.

on 11/22/2005 There is a clause entitled "subordination." This means that, should your landlord sell or foreclose, you could lose your place without legal remedy. Add a non-disturbance amendment, which will protect you. Ask any realtor about this.