Renting an apartment is one of the best housing options available for millions of Americans. But before you finalize a rental agreement, there are certain factors you need to consider.
Aside from the cost, you have to know what documents to prepare, what questions to ask the landlord, when to sign a lease and whether or not you need to purchase renters insurance. Understanding these can help you have a problem-free, positive rental experience.
Factors to Consider Before Lease Signing
For many people, owning a home is one of their biggest financial goals and investments. However, depending on your needs and circumstances, being a renter may be the better option.
While the process of renting an apartment may seem simple, there are various concepts and aspects you need to know. Whether you’re a first-time renter or not, it’s important to understand what a lease agreement is, when signing one makes sense and what to prepare and expect during the process.
What Is a Lease Agreement?
A lease agreement is a document that outlines the rules, terms and conditions that both the landlord and tenant must agree to follow. It's a legal contract similar to a rental agreement. But unlike a rental agreement that often expires monthly, a lease agreement is a contract for longer periods, usually at least one year
Generally, the lease signing process starts with the landlord creating the contract and sending it to the tenant. The tenant will then review the lease. If they agree with the terms, they'll sign and send the contract back. The landlord will conduct the final review and provide their signature. The document becomes valid once it contains all necessary signatures.
What Is Included in a Lease Agreement
There are no general requirements as to what a lease agreement should include. A landlord may choose to create a one-page contract or a more comprehensive document. It may be typed or handwritten.
That said, renters should ensure the contract covers the following basic items:
Names of the tenants
All adult tenants in the rental unit should be named. This ensures legal responsibility for the contract's terms, like paying rent and property use.
Occupancy limits
The agreement should specify that the unit will serve as the residence of the tenants who signed along with their minor children.
Rental description
Your lease agreement should describe the property in detail. Make sure the document has the rental unit's complete address. It should also mention specific storage areas or assigned parking spots.
Rental term
The contract should specify that it's a lease agreement and include the duration of the tenancy. Lease terms may vary but typically last a year.
Rent
The lease agreement should specify the rental amount, when it's due and the acceptable payment channels or methods.
Deposits and fees
Clarifying how much the security deposit is, how it might be used, when the landlord will return it and what deductions are possible can help avoid future disputes. The agreement should also include non-refundable charges, like cleaning or pet fees.
Repairs and maintenance
The lease agreement should set out the landlord's and tenants' responsibilities when it comes to maintaining the rental unit. For instance, the tenant should ensure the property is kept clean and inform the landlord of any defective or dangerous conditions.
Right of entry
The contract should clarify the terms in which the landlord can enter the rental property. For instance, the landlord must provide an advanced notice before entering the unit to help prevent violation of privacy rights.
Rules and restrictions
The lease agreement should outline all rules and policies for the rental unit. For instance, there should be an explicit clause on prohibited behaviors and activities. The document should also clarify rules or restrictions on pets.
When Signing a Lease Makes Sense
A lease agreement is legally binding. You must ensure you understand what you're committing to before signing.
If you choose a rental unit with monthly expiration and renewal, you'll sign a rental agreement, and a lease agreement isn't necessary. But if you're renting for a long period — like a year-long term — you'll have to sign a lease.
Typically, the spring and summer months are the busiest for apartment leasing. Aside from the pleasant weather, these months coincide with the end of school and graduation season. That said, finding apartment listings during fall and winter is still possible.
Once you decide on a rental unit, determine if you need to sign a lease agreement. You'll want to make sure that you sign at the right time. Generally, the best time to sign is about a month before the move-in date. This way, you have enough time to plan and prepare.
What to Prepare Beforehand
Before proceeding with the signing process, make sure you have all the necessary documents ready. Bringing all required documentation with you will ensure a smoother transaction and prevent unnecessary delays. Clarify specific requirements with the landlord of your chosen unit, as these may vary.
Factors to Consider Before Signing a Lease
A lease is a commitment that comes with responsibilities. It's crucial to ensure that you understand all the details of the agreement. Familiarizing yourself with certain aspects of your lease, such as the following, can help ensure you have a good renting experience.
Questions to Ask Your Landlord
Landlords may have different rules and regulations. It's best to ask them important questions before signing a lease to prevent misunderstandings and issues. Knowing the answers will also help you prepare and prevent common mistakes that may lead to fees or even eviction.
Some vital questions include the cost of rent and payment, renters insurance, utility and maintenance.
Rent and Payment
One of the most important questions renters need to ask is what the rental cost is. You should also clarify acceptable payment methods. Understanding these pieces of information will help you find the right property suitable for your financial situation.
You need to know the cost of rent. This will help determine if the property is within your budget. Additionally, it allows you to see if the price is reasonable for the type of property, condition of the unit, included features and location.
Typically, landlords ask tenants to pay a security deposit before moving in. Depending on the state, this may be refundable. Ask how much the security deposit is and what may warrant the landlord to keep the deposit.
As a renter, you're responsible for making payments on time. Ask when rent is due. This information will help you when budgeting your finances. If possible, consider setting up an automated schedule for rent payments.
Ask the landlord if there's a grace period for late rent payments. Check if there are penalties for missed or late payments. Many landlords let tenants off with a simple warning the first time, but policies can vary widely from landlord to landlord.
Some landlords may require check payments. Others may receive money orders, while some accept cash or electronic payments.
Before making payment for a rental unit, do your due diligence. Make sure you understand what you’re agreeing to ahead of time.
The Lease
The terms and conditions of each lease are often unique. That's why it's necessary to clarify any questions you may have after carefully reading over your specific lease. Asking the right questions can also help you make an informed decision about whether or not you want to sign a particular lease.
The lease term determines how long the agreement will be in effect. It lets you know when your contract expires and when you'll have to apply for renewal. It also tells you what type of agreement you'll have. If the contract expires monthly, you'll have to sign a rental agreement. Longer terms come with a lease agreement.
Landlords may have rules about contract renewal. For instance, tenants may need to inform the landlord of a renewal plan before the lease ends. This may vary per landlord. Some landlords also only rent out properties for one lease term.
In some cases, landlords may ask for a co-signer, or a third party who'll co-sign the agreement with you and share the responsibility for the rent. Typically, a co-signer is necessary for individuals with bad credit scores.
If you plan on having roommates, check with the landlord about their conditions regarding such circumstances. It's up to the landlord to require separate lease agreements or create a joint lease.
Ask the landlord about their expected occupancy date. See if it aligns with your plan move-in date. If the unit is undergoing repair or renovation, ask when it'll be ready for occupancy. Knowing this information will help you prepare.
Renters Insurance
Renters insurance provides financial protection against possible expenses from damages or loss of property. Depending on the landlord, you may have to get a policy even before signing a lease. Ask about the required renters insurance coverages so you can purchase an appropriate amount of insurance.
Generally, renters insurance isn't a legal requirement. However, landlords and property managers can choose to require tenants to have a policy.
The necessary coverage will depend on the property and the tenant. There's no universal minimum requirement, so check with the landlord about their regulations on insurance.
Ask the landlord or property manager what type of insurance they have. For instance, some landlords insure the contents already in the property before the tenant moves in. Those with rental units in buildings may also have coverage for the building.
If the landlord requires renters insurance, chances are they'll ask you to provide proof of coverage. This may be one of the required documents during the signing process. Don't forget to ask whether you need to submit the same document if you decide to renew the agreement.
Utility
Utilities are essential aspects of homes. Before signing a lease, ensure you understand the landlord's utility policies. Ask them what they've already installed and what you may add. Clarifying this information will help you understand your responsibilities as a tenant.
Typically, certain utilities are already provided for by the landlord. These include electricity and water. Check if you need to set these up in your name. In some cases, landlords don't require you to do this.
There are also utilities that landlords don't often provide. For instance, you may want to add air conditioning, internet or cable TV. Ask about the process for installing these services. Check with the landlord if they have a rule on getting additional utilities. Do you need to apply for them yourself?
While landlords often provide basic utilities, they aren't required to pay for them. The lease agreement will determine who's responsible for paying utility bills. Ask the landlord or property manager if there's no written provision about this included in your lease.
Some landlords have metered utilities, such as electric and gas. In such cases, the landlord may impose penalties for late payments.
Ask if there's a need to submit account information for utilities under your name. Landlords may request this to check if the tenant has changed the utility account to their name.
Maintenance
Tenants are responsible for keeping their rental units clean. However, you may not be responsible for all maintenance in your unit. Clarify this with the landlord. Ask them about the process of reporting issues and how to handle repairs. Some common, important questions to ask can be found below.
Landlords may offer emergency maintenance services. Ask them about this before finalizing your lease. Check if you'll be given access to a 24/7 maintenance service provider for emergencies.
There may be a procedure you'll have to follow for non-emergency maintenance requests. Clarify this with the landlord. You should also confirm how long it usually takes them to resolve maintenance issues.
You may need to handle some repairs. Typically, landlords leave minor issues to tenants. For instance, clogged toilets are the responsibility of the renter. However, you may have to report bigger problems that require professional intervention to the landlord, who will handle things from there.
Some landlords charge fees for maintenance requests. Ensure you check the maintenance policy before signing the lease to be aware of possible additional expenses.
Other Questions
Different renters value different things in a living situation. The best apartment for you is the one that best fits your needs, situation and financial circumstances. Here are some additional questions you may want to ask before signing a lease.
If you have a pet or are planning on adopting one, you may want to ask the landlord about their pet policy. Some landlords allow any kind of pet, while others may have restrictions on the type of animals renters can have in the unit. Others charge pet fees.
If you have a car, ask about parking for the unit. Some rental properties include a parking space. However, others may charge extra for this amenity.
Subletting is when a tenant rents out a room in the unit to another person. Rules on subletting vary from landlord to landlord. While some may allow it, there may be restrictions on the length of subletting and the number of people who can sublet.
In some cases, a renter may decide to terminate the contract in the middle of the lease term. Some landlords charge early-termination fees. Check this first to prevent unexpected expenses.
To ensure your rights to privacy, make sure you ask for the policy on home inspections and visits. Typically, lease agreements include a provision on this. For instance, the landlord must provide the tenant with notice before entering the property. The time may vary, but it’s usually at least 24 hours.
Preparing for a Move-In
Once you're sure about a lease, it’s time to sign it and schedule your move-in date. You want enough time to handle current responsibilities and prepare for your move. A month after the agreement signing is ideal, especially if you've already made the payment for your last month in your current residence. If you're a first-time renter, you can use this time to shop around for furniture and other home appliances you may need.
Below are some steps you need to take for a hassle-free move-in.
Check what utilities you need to set up
Before your move-in date, ensure you know what utilities you'll be responsible for. You may need time to set up internet and cable TV services. Depending on the agreement, you may also have to transfer utilities to your name.
Update your address
If you have subscriptions, update your mailing address. You may also need to update the address associated with your driver's license, voter registration and bank.
Create an inventory
Before packing your stuff, take inventory. Account for everything you own since it will help you track any lost items. An inventory list is also vital if you hire a moving company. Additionally, it may be necessary for your insurance.
Bring essentials on your move-in day
Determine what items you'll need on your first night. Make sure you have all essentials, including valuables and a change of clothes for a few days. This is especially important if you hire a moving company, as there may be unexpected delays.
Resources for Renting an Apartment
Finding the best apartment for your needs and circumstances can be challenging. Fortunately, there are tools and resources specifically for renters. Here are some of them.
Search Tools
- Apartment Guide: Access apartment listings on your phone. This mobile app allows renters to check property photos and floor plans and makes it easier to contact landlords or property managers directly.
- Rent: Find apartments available for rent based on reviews. Check visit times and book a tour.
- Zillow: Search for apartment listings based on budget and location. This app also lets interested renters connect with property managers or agents.
Financial Aid and Support
- Consumer Financial Protection Bureau: Find available rent assistance programs in your state. Check the program name, type and access links to the program page.
- Eblen Charities: See if you qualify for Eblen Charities' emergency assistance, which can be used for rent deposits or past due rent payments.
- The Salvation Army: Check if you can get financial assistance to help with monthly rent payments, utility bills and other expenses. This program is for low-income families in need.
About Nathan Paulus
sources
- IBISWorld. "Apartment Rental in the U.S. – Market Size." Accessed August 24, 2022.
- iPropertyManagement. "Renting Statistics." Accessed August 24, 2022.
- Joint Center for Housing Studies of Harvard University. "The State of the Nation's Housing 2022." Accessed August 24, 2022.