Rental Agreement Clauses
A rental agreement or lease is a binding contract. As such, it is not a document to sign on a lark. While the agreement itself may not be available for review until you are asked to sign it, you can become familiar with common agreement clauses beforehand. This will enable you to make sure you rights are spelled out and protected for the duration of your rental.
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The Rent and Duration
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Fundamental to the agreement are the rental rate and duration. The agreement must have, at minimum, the initial monthly rent and a rental term -- generally between one month and one year. An agreement for one month generally states the tenancy becomes "month-to-month" after the initial month. This means all lease clauses will continue automatically. The advantage of a month-to-month agreement is that you can leave anytime you want so long as you provide 30 days notice to the landlord. The disadvantage is that the landlord can raise the rent, change other lease terms or ask you to leave without reason, also with 30 days notice. A one-year lease locks your rent and all other agreement clauses for a full year. The downside is that you will be responsible for the rent for the full lease term whether you decide to stay or leave. Before you sign a lease, consider these basic differences. If your landlord prefers a month-to-month lease but you want assurances he won't raise the rent for at least a year, negotiate the change. A lease can be modified either before or after it is signed, but you will have a lot more leverage if you ask for changes before you sign on the dotted line.
Subletting
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If the lease is for a lengthy fixed term -- a year or more -- and there is a possibility you may want to leave before that or it is month-to-month agreement but you know you'd like to travel during the summer months and then return, the subletting clause will be very important to you. Some leases prohibit subletting. Others allow it with the landlords permission. Still others allow it without having to get the landlord's permission but holds you responsible for the rent and upkeep through the sublet. Think about what kind of arrangement will work best for your circumstances and talk to the landlord upfront. If you go with subletting with landlord's permission, come to a further agreement on what circumstances would result in approval of the sublet and write that into the agreement.
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Utilities
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Do not overlook the utilities section of a lease. It can dramatically affect your household living expenses, especially if you live in a very cold or hot climate. The rental agreement should specify who pays for gas and/or electricity, sewer and garbage. Ask the landlord if there are any other utilities necessary to the operation of the property, like homeowner's association dues. If there are, you will want them and the party responsible for payment listed in the lease. If the unit is part of a larger building or complex and you will be paying for some or all of the utilities, make sure the lease states there are no "shared" utilities -- that is, utilities shared between different units. Also, call the utility providers ahead of time and ask what the average monthly bills have been in the prior year: once you are responsible for the bills, you will have to pay them, whether they are as low as the landlord said they would be or not.
State and Local Law
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Before signing a rental agreement, familiarize yourself with state and local laws applying to rentals. Some states and cities regulate evictions, security deposits and rent raises. These laws will apply to your rental whether they are in the lease or not. If there is a difference between the lease and state or local law the latter will prevail.
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References
Resources
- Photo Credit apartment lease sign image by Aaron Kohr from Fotolia.com
