Key terms in rental/lease agreements

There are two main kinds of leases.

The first kind of lease is a fixed-term lease. This type of lease lasts for a set period, often one year. Both you and the landlord say that you will stick to the lease for that time. You are guaranteed a place to live for a year and you guarantee that you will pay rent for a year. The rent is fixed for this term. If you need to leave early, you may have to pay more money.

The second kind of lease is a month-to-month lease. This lease doesn't have a set end date. You or the landlord can stop the lease at any time. You just need to give a warning about $30$‍ days before. Month-to-month leases are typically more expensive.

Lease agreements may look hard to understand, but they usually contain a few key parts. The first part says how much rent you need to pay every month. For example, the lease could say you need to pay $\mathrm{\$}\mathrm{1,000}$‍ in rent each month.

Next is the security deposit. This is money you pay at the beginning to cover any potential damage to the property. The security deposit is typically the same as one month's rent, but it can be higher or lower than that.

Occupancy refers to who can live in the rental home. The lease will usually state how many people can live there. For example, it might say that only two people can live there, or it may say two people per bedroom. If you have more than that, such as a roommate or family member moving in, you usually need to tell your landlord.

If you have a pet, be sure to check the pet policy. Some places do not allow pets at all. Others may allow pets, but you need to pay a pet deposit. This is extra money to cover any potential damage caused by the pet. The deposit is typically non-refundable, meaning you do not get any of that money back when you move out.

Some landlords also charge pet rent. This is an extra amount you need to pay every month above your regular rent. For example, you might have to pay $\mathrm{\$}20$‍ a month extra if you have a dog.

Late fees are extra charges you have to pay if you do not pay your rent on time. Your lease will tell you when your rent is due, usually the first day of every month. If the rent is not paid on that day, you may or may not have a few extra days before having to pay a late fee.

Utilities are things like heat, water, electricity, and internet. Some leases include utilities in the rent. Others don't, which means you'll need to pay these bills yourself. Be sure to check the lease so you know what you need to pay for.

When you rent a place, it can be useful to have renter's insurance. Renters insurance keeps your stuff safe if it gets stolen, broken, or lost in a fire. Your landlord's home insurance does not cover any of the stuff inside - only the building itself. Sometimes, the lease may say you need to have this type of insurance.

Lease termination is about how the lease can be ended. Normally, both you and the landlord have the option to end the lease after giving a notice, usually $30$‍ days. However, if you end the lease early, you might have to pay more money, known as a lease termination fee.

Other common parts include lease term or how long the lease lasts, how to renew the lease, and what you and the landlord must do. It’s important to understand all these details before you sign the agreement.

Lease agreements are serious. They are contracts, which means they can be enforced in court. You and the landlord each have things you must do. In general, landlords are responsible for taking care of the building/common areas, fixing what is broken in your apartment, and respecting your privacy.

As a renter, you have to pay rent on time and take care of the property. You also need to follow all the rules of the house. The exact details can change a lot based on the lease, so make sure you understand them fully.

Life happens. Sometimes you might need to move unexpectedly for a new job or family reasons. In such cases, you might need to break your lease. However, breaking a lease should always be a last resort as it comes with consequences. You will often have to pay a penalty and your rental history will show that you broke a lease, which can make it harder to rent in the future.

But it's not just moving early that can break a lease. Other actions can also break a lease, like not telling the truth about who's living in the home, having a pet when you're not allowed, or not paying rent.

One thing folks often see on social media is advice to withhold (or not pay) rent if there are needed repairs. This is truly terrible advice! Withholding rent for any reason will break your lease. Once a lease is broken, the landlord can ask you to leave immediately, through a process called eviction.

If your home needs repairs, the best thing to do is to tell the landlord right away. Most landlords want to keep their homes in good condition and will make needed repairs as soon as they can. If the landlord is not responsive, there may be legal actions you can take, but withholding rent should never be one of them.

Always remember, breaking your lease will cost you money, can impact your credit score and make it harder to rent in the future.