When signing a lease for your rental property, you should understand each term of your lease and look for specific, important terms that can affect your experience living in the property. Discover the most important lease agreement terms to look for when signing a lease agreement. 

A renter’s lease agreement is a binding contract that outlines the conditions for tenancy at a rental property. You will make this agreement with your landlord or the property management company that oversees your rental. Lease signing can take place in person or be completed online before you move into a new unit, and your landlord should go over all the important terms with you if they’re present. 

It is extremely important to look over your lease agreement before signing it, as leases are important legal documents regarding your living situation. Before signing your lease, you should ensure that you understand everything important in your lease agreement. 

Important Lease Terms to Note

Rent and Due Dates

The rent due date is the day you are supposed to pay your rent. Some states allow a grace period, which is a set number of additional days a tenant is allowed to pay the rent before a landlord can post a “pay rent or quit” notice on your door, providing you with a set number of days to pay rent before you are evicted. While a landlord cannot charge a late fee during the grace period, he can consider the rent late if paid after the due date – which can work against you in your future landlord reference. 

You should also be aware of the late fees and penalties associated with your rent due dates, so you are aware of what happens if you don’t pay. Additionally, you should look for information about annual or routine rent increases. Many landlords and property managers place small incremental rent increases into the lease agreement, sometimes known as escalating rent charges. If you missed it in your lease, you might be shocked when your rent suddenly goes up $50/month after the first year.

Inspections, Maintenance, & Insurance

You should be aware of the inspection and maintenance routines your landlord or manager maintains. These might include an annual appliance service, an occasional walk-through, or a seasonal maintenance visit. It’s a good idea to know when your landlord will be stopping by, and the lease will give you an idea of when to expect these normal landlord or management visits. Please note that, while quarterly or annual inspections are normal, monthly inspections are not and can be considered overbearing and burdensome. You should also find out who is responsible for landscaping and what is considered acceptable landscaping if it is a tenant responsibility. 

Similarly, you should know what the renters insurance requirements are. Property managers and landlords might require their tenants to obtain renters insurance as a condition of the lease agreement. Failing to provide proof of insurance can be considered a lease violation. If you don’t have renters insurance already, ask your future landlord if they offer renters insurance via their property management software.

Learn more: Renters Insurance: Benefits for Landlords and Tenants 

Parking

Look into the parking policies and the associated fees. You should also know how many cars are allowed to park on the property, if street parking is allowed, and whether you are allowed to park in front of neighboring houses. If your car is undriveable and you have it parked in your driveway or apartment parking lot, you could be violating a lease term. Some property managers will simply tow your car, while others will issue a lease violation or fine. Your lease should outline what happens to cars that are broken down in the parking lot and how long they can stay parked there. Similarly, some apartments and rentals have rules about working on cars in the parking lot. 

Decorating

Some leases prohibit decorating, like painting, hanging pictures, changing light fixtures, or adding curtains. Anything that can be potentially damaging to the walls or property fixtures may be prohibited by your lease. Some lease agreements also have rules about what is allowed to be kept on a patio or in the outside space of a property. For example, some leases prohibit the storage of patio furniture outside of designated areas. 

Learn more: Harvest and Halloween Decor Tips for Renters 

Rules Regarding Occupants

Double-check the lease for information about having guests stay overnight at the property. Some super strict lease agreements won’t allow a tenant to have a guest spend the night more than a couple of nights in a row. This can be a challenge for people in relationships, where sleepovers happen often. If your state laws allow it, a landlord might be within their rights to say that you cannot have a non-tenant stay for longer than a certain number of days. If this is a deal breaker, consider a new lease. 

Similarly, pets or visiting pets should also be considered whilst looking through your lease. You likely already know if your rental allows pets or not, especially if you are a pet owner, but some leases have rules about visiting pets as well. If your lease prohibits visiting pets, a friend bringing one over can get you into trouble with management. 

Look for language about requirements to notify your landlord if you will be out of town for an extended period of time, like for a vacation. Some landlords might even require you to give notice if you will be out of town for as little as 3 days. This is important if the landlord needs to access the unit or get ahold of you for an emergency.

Other Important Lease Terms

There are a few other important terms that may be present in your lease. These include: 

  • Snow removal
  • Emergency response
  • Noise policies
  • Tenant maintenance responsibilities
  • Pest control

And anything else regarding your responsibilities to your property. These responsibilities are essential for your continued success in your rental home. Be aware, though, that state and federal laws dictate what can be included in a lease, and that there will be rare occurrences of lease terms that violate those laws. It is important that you know your rights and responsibilities as a renter when signing a lease. 

Learn more: Top 10 Landlord-Tenant Laws to Remember 

Final Thoughts

Understanding your lease terms is an essential part of renting. You should read your lease every time you sign a new one, and even when leases are renewed, so you can understand how your lease may change and continue to ensure that you are comfortable with each term on the lease.