The most important aspect of renting an apartment or home is signing a rental lease agreement. It’s crucial that you fully understand what you’re signing. Despite its significance, it’s ironic how often this binding legal document is quickly glanced over and not given the attention it deserves. A lease agreement outlines all the terms that both the landlord and tenant must adhere to, and it should not be taken lightly.
The Importance of a Rental Lease Agreement
If you’re new to renting, the legalities and terms of a lease agreement can be overwhelming. Perhaps the landlord is standing over you, and you’re feeling rushed, or maybe you’re embarrassed to ask questions. However, this document will detail all the important elements of your rental, so you must know what it says and understand it. It’s better to read the contract with the landlord present, as that way, you can ask questions, and any diligent landlord will be happy to answer them.
Most agreements will follow a fairly standard format, so be sure to look out for these important points:
Key Points to Look for in a Lease Agreement
The Lease Term
The lease term refers to how long you are agreeing to remain a tenant in the apartment. Be sure the term works for you—there’s no point in signing a 2-year lease if you want to move out in 6 months. Personal circumstances can change, and you may find yourself needing to move out earlier than planned. If that happens, what does the lease agreement say about any penalties? Make sure you’re comfortable with them.
Security Deposit
A security deposit (or damage deposit) is an agreed sum of money that the landlord holds at the start of the lease. Most landlords ask for some form of deposit, so you need to know when it will be returned and under what circumstances. Some landlords may only return a full deposit once the apartment is inspected and is free of damage or has been satisfactorily cleaned.
Utilities
Utilities can significantly increase your monthly rent, so this is something you should clarify with your landlord. Many landlords include at least some utilities in the rent, or you might get cable included if you’re in a condo. Either way, the lease agreement must clearly state which utilities are included and which are not. If a utility is not specifically listed, it is your responsibility.
Repairs and Maintenance
While the tenant might be responsible for small repairs, such as replacing a light bulb, what happens with more significant repairs and maintenance issues? Typically, landlords are responsible for repairs to plumbing, heating, and air conditioning, but it’s essential to understand the process. Will you need to arrange and pay for repairs upfront and request reimbursement, or will the landlord handle it directly? The lease should also specify timeframes, such as how many days the landlord has to make a repair.
Event Notification
During your tenancy, you may go on vacation or have someone stay with you for an extended period. These events may need to be mentioned in the lease agreement. For example, if you’re leaving the apartment unattended, you should notify the landlord, as it could affect their insurance. Similarly, if there’s a plumbing issue, like a leaking dishwasher, the landlord should be informed immediately to prevent further damage. By reading the lease agreement carefully, you will know what’s expected of you as a tenant.
Rent Increases
For shorter-term leases, rent increases are uncommon. However, for leases lasting longer than a year, a rent increase is possible. The lease should specify by how much (usually a percentage) the rent will increase.
When it comes to pets, the lease agreement can sometimes be a gray area. It should specify what types of pets are allowed, how many, and any restrictions on size or breed. Even if you don’t have pets, you should read this section carefully, as it may affect you if your neighbors have pets. Consider whether noise, smell, or allergies could become an issue.
Moving Out and Lease Termination
When the lease term is coming to an end, the lease agreement should clarify whether you have the option to extend it or stay longer. It should also specify moving-out terms, such as how much notice you must give your landlord and what happens if you need to move out before the lease expires.
Guest Article: Canadian Renters
More tips and advice on renting an apartment or home in North America can be found on Canadian Renters, a website specializing in apartments for rent across Canada.
