Signing a rental agreement provides an opportunity for independence and the freedom to live according to your lifestyle, but it also entails a legal obligation. The lease agreement must comply with your state's laws, and you should receive a copy and take the time to read through it thoroughly.

Understanding the lease terms is vital for compliance with the law and maintaining a positive relationship with your landlord. Ensure you can abide by the lease terms, so you and your landlord can have a harmonious working relationship.

The following are some of the components of your lease and what they include. If you have any questions about it, ask them before you sign and agree to the terms listed.

The Parties Involved

The first portion of the lease will outline the people involved. You are the tenant, the person renting the property. The lease should also identify the property management company. They are the company that manages the property for the owner. You may also be entering into a contract with the property owner.

The lease should include your full name. If you rent with another person, the lease should include their name, as they will share responsibility with you. Ensure your information is accurate and the lease uses your legal name.

Description of the Property

The next section of the lease agreement will describe the property in detail. This description usually includes the officially recognized property address, even if your specific location is just one unit within that property. Additionally, it will outline the features of the property, including its exact location.

This part of the agreement also specifies common areas or shared facilities you can access as a tenant. These shared spaces may include laundry rooms, playgrounds, courtyards, and fitness centers. If the property comes with assigned parking, the lease should also contain information about that.

Terms of the Lease

The terms of the lease outline the details of your agreement. It usually will include the length of the contract (it could be an annual contract that renews every 12 months or a month-by-month lease, which means it remains in place indefinitely but only monthly.

Be sure you know the specific start and end dates of the lease. The tenancy length, or the time you will be in that property, should be clear.

Rent Payments

The lease agreement will detail all aspects of the rent, leaving no ambiguity about what you expect to pay. It should reflect the amount agreed upon, even if prior discussions with the landlord differed. Ensure that this information is accurate.

In the lease agreement, you should find specific information about the rental price, including:

• Monthly Payment: The exact amount you must pay each month.
• Payment Methods: Acceptable payment methods, such as personal checks or electronic funds transfers.
• Late Fees: Any applicable fees if your rent is late, including when these fees apply (e.g., if the rent is two days late).
• Nonpayment Charges: Additional charges related to nonpayment, such as fees for returned checks.
• Payment Location and Timing: Specific instructions on where and when to pay the rent.

If you are unsure about any of these details, it's essential to verify them with the landlord and have the contract updated to reflect the terms accurately.

Security Deposit

In most situations, you pay a security deposit, a specific dollar amount you deposit that remains secured until you move out. Most states enforce specific rules on how landlords must maintain security deposits. The lease outlines the security deposit amount and specifies how the landlord will use it (including what they will not use it for).

A security deposit can help cover losses the property owner experiences due to your presence. For example, if a window gets broken due to negligent actions (like your child throwing a ball through it), the security deposit could help cover those repair costs.

The lease outlines what happens with the security deposit if you do not use it during the lease term. For example, if you decide to move out, and the property is in good condition, you may receive the security deposit back or use it as the land month's rent. The lease should also outline any nonrefundable fees related to the lease and security deposit.

Maintenance and Repairs

Your property owner will make specific requirements about maintenance and repairs. All properties need to be maintained, and in most situations, there will be times when the property owner needs to access your property to make those repairs happen. Your lease should spell out all of the rules related to this, including:

• What to do when there is a maintenance or repair concern.
• Who is responsible for the maintenance and repairs.
• Requirements to alert the property manager or landlord about any dangerous conditions.
• Restrictions on how you can use the property and whether you can change it.
• The types of maintenance you are responsible for, such as flooring or appliance repairs.

Rules and Regulations

The following sections of most lease agreements provide rules for you to follow. Remember that you agree to follow these rules if you sign the lease. These will differ from one owner's lease to the next. Some of the most common rules to expect include the following:

• The landlord's right to enter the property and how much notice they need to provide.
• Smoking in the unit or on the property and whether that is allowable.
• Rules related to owning and caring for pets, including your responsibility to keep up with care related to the pets.
• Restrictions on the use of the property, such as being unable to conduct business outside the property.
• Restrictions on using the property or engaging in any illegal activity on the property.
• Requirements to maintain a rental insurance policy.

Termination and Renewal

Your lease will include specific information about what happens at the end of the lease. It includes the landlord's right to refuse renewal and your need to report if you are not remaining on the property. Information about your right to terminate the agreement is also included, such as what you can expect if you want to end the contract before the end of the lease. There could be fees, or you may be responsible for the total amount.

Special Clauses

This section includes any special or unique terms in the agreement. That should include any rules about access to the property or special terms you have agreed to with the property owner.

Reading the Entire Lease

Make sure you read through the entire lease thoroughly. There are often disclosures and contact information provided within the contract that you will need to know. Be sure to ask questions about and ask for clarification within the lease if you don't understand its terms or disagree with them.

Takeaways

• A rental agreement is a legally binding contract you will enter with the property owner or management company.
• You need to understand all components of the lease agreement, and if you do not understand it, ask for clarification.
• By signing the contract, you agree to the terms and can be held responsible for those terms.