How to Read a Tenant Agreement

When reading a tenant agreement, it’s important to focus on the major issues first. The amount of your rent payment is more important than what state has jurisdiction over the lease should a dispute arise. Here are some lease clauses to read and understand when you get your tenant agreement:

Rent and Security Deposit

The first thing you’ll want to check in the tenant agreement is the rent clause. Does the amount written in the lease match what you agreed to with the landlord? The rent clause will also detail how much and when late fees are applied. It doesn’t matter what the landlord promised verbally or stated in an ad. Whatever is in the tenant agreement becomes final. Therefore, if there’s a discrepancy, be sure to resolve it with your landlord before signing the agreement.

The same applies to the security deposit. The landlord cannot ask for an amount higher than allowed by state rental laws. This is often one, one-half or two times one month’s rent. Confirm that the amount of the security deposit written in the tenant agreement is what the landlord stated in any verbal agreement. The agreement should also spell out the requirement to list any deductions from the security deposit to pay for repairs and damages to the premises that you cause while living there.

Restrictions on How Many People

Your tenant agreement may have restrictions on the number of people that can live in the apartment you want to rent. The landlord will want to know how many people will be living in the apartment, and will often restrict it to family members or roommates. If you plan to have others live with you, it’s important to deal with any restrictions upfront. Otherwise, it could be grounds for an eviction down the road.

Term of the Agreement

You’ll also want to read the term clause carefully. This covers how long you can rent the premises, and what happens after the term expires. For example, if you rent for one year, the lease may “roll over” into a month-to-month tenancy. You may have to provide notice to the landlord 30 or 60 days prior if you plan to terminate the lease upon the expiration date. Check this portion of your tenant agreement before signing, so that you can negotiate the notice requirement or the length of the tenancy if the lease gets renewed.

Repairs and Maintenance

According to state laws, the landlord is responsible for maintaining the apartment in a inhabitable condition. However, it’s better to sign a tenant agreement that spells out the details of repairs and maintenance. For example, the agreement should state whether the landlord, property management or the tenant is responsible for repairing appliances. Another common issue is whether the landlord or tenant should shovel and salt walkways or driveways.

The best way to read a tenant agreement is to read it carefully once through, go back and read these important clauses twice through, and then read it once through again. Once you sign the agreement, it’s final, so it’s crucial that you understand it all before signing it.