Remember four little words: Read the small print. You need to protect yourself by knowing all the rules and regulations of living in your new space and of leaving it. If there are provisions in the lease that you object to, see if you can work out a compromise with the landlord. Cross out the unwanted language for any changes the two of you agree to, initial and date the change, and have the landlord do the same. Don’t rely on oral agreements. They’re difficult, if not impossible, to prove.
If there’s something you don’t understand, ask the landlord or property manager to explain it. Don’t make any assumptions. A few things you might want to ask up front are:
Don’t be embarrassed if you have a lot of questions. Landlords expect questions, and once you sign the lease, it’s too late. Make sure the answers you get from your landlord correspond with the lease document.
Landlord Fees
Most landlords check your credit report and usually charge you a fee of $20 to $35. Most will also verify your income to ensure that it’s at least three times your monthly rent, so if rent is $800 a month, your monthly income would have to be at least $2,400.
Getting out of your lease before the end of the lease term can be difficult and expensive. You can be held responsible for paying the rent for the remainder of the lease. Find out if there are circumstances that would release you from your obligation. What if you got a job transfer? Had a baby? Some landlords will allow you to break the lease for a fee. Others may allow you to sublet to another tenant. Some landlords will allow you to sign a month-to-month lease. If you sign a month-to-month lease, be aware that the landlord can terminate the lease or raise the rent on short notice. Usually you’re still obligated to give written notice of your intention to move out ten to sixty days in advance.
When you rent a house or apartment, you’re usually required to pay a security deposit equal to one month’s rent, which the landlord will hold until you move out. At that time, any expenses for cleaning or repairs beyond normal wear and tear and any unpaid rent will be deducted from your deposit, and the balance will be returned to you. Most states have laws about how landlords have to treat security deposits. Usually they have to place them in an escrow account or an account separate from their normal operating account. The landlord may be required to pay you interest on the deposit, and is required to return it to you within a specified time after you vacate the apartment.
Get a receipt for any security or other deposits you pay. The receipt should show the date and amount paid, the name of the person you paid it to, the name of the landlord, the address and apartment number the deposit is for, and a statement that it’s a security deposit. Save the canceled check for the security deposit when your bank returns it in your monthly statement. This and your receipt are the best proof that you actually paid the deposit. During the first week or so that you live in rented housing, go through every room and make a detailed list of everything that’s broken, dirty, or damaged, including chips in cabinets or tubs, holes in walls, broken windows, missing or broken knobs, tears in or stains on carpets, chips or rips in linoleum, burns, and so on. If possible, take pictures of the damage. Send a copy of the list to your landlord and keep a copy with your pictures to use, if needed, when you leave.
Clean the apartment thoroughly before you move out and repair any damage you caused (beyond normal wear and tear). Remove all of your belongings and any trash. Ask your landlord to walk through the apartment with you and give you a signed statement about the condition you left it in. You may even want to take pictures of the condition of the apartment before you leave, in case you have to go to small claims court to get your security deposit back. Be sure to leave your landlord your forwarding address so he can mail your deposit.
If you find an apartment that allows pets, you may be required to pay a pet deposit in addition to your security deposit, to protect the property owner against any damages your pet may cause. Pet deposits can range from $100 to a full month’s rent, and may be nonrefundable or only partially refundable depending on the state.
Some states prohibit landlords from charging extra deposits for pets or charging for credit checks. Landlords are also not allowed to charge deposits or fees for service animals or emotional support animals.
You may be required to pay a refundable deposit and nonrefundable hookup charges to one or more utility companies, including electric, gas, water, sewer, and cable TV. Many electric companies require a deposit of several hundred dollars. If you can prove you had electric service recently in your name in another location and you had a good payment record, the utility company may waive this requirement. When you move out, be sure to request your deposit back from the utility company.
If you plan to rent an apartment with one or more roommates, your landlord may require separate deposits from each one of you. You have several choices. All of you can sign the lease, which will make you all jointly and individually liable for rent and damages. This means each one of you is fully responsible for all of the rent and all of the damages, if there are any. If one of you fails to pay the rent, the others will have to come up with his or her share or face eviction.
It’s a good idea to design a written contract spelling out each person’s responsibilities, including the amount of rent each will pay, who will share responsibility for damages, how payment for utilities will be divided, how long the rental agreement will last, and who will be liable for rent if one person leaves.