Leases are often packed with legal jargon that can be difficult to understand, leaving you with questions like, “Why are some leases longer than others?” or “What should I do if I see something questionable in my lease?” Understanding how to read an apartment lease can help you know what you’re agreeing to before you sign. This article covers some of the most common lease clauses, terms, fees, and red flags to look for before signing a lease.
What Is an Apartment Lease Agreement?
An apartment lease is a contract between a tenant and a landlord or property manager that outlines the rules both parties agree to follow. After you and your landlord sign the lease, you are both legally bound by its terms, which is why it’s important to understand what you’re reading before you sign it. Lease lengths and terms can vary from property to property, but many apartment leases cover similar topics, such as rent, fees, lease, dates, and tenant responsibilities.
The standard 12-month lease
A 12-month lease is a fixed-term lease that lasts for 12 months. As a renter, you agree to follow the lease terms for the period listed in the contract. That usually includes paying rent, following community rules, paying applicable pet fees, and meeting other lease obligations until the date indicated in the contract. Generally, these leases cannot be broken, but some landlords may let you break a lease early, albeit with financial consequences.
A month-to-month lease
A month-to-month lease, or periodic tenancy, is a lease term that lasts for one month at a time. This lease term is most used by short-term renters. To end a month-to-month lease, the renter should give the landlord a written statement at least 30 days prior to the preferred move-out date.
What Does a Typical Apartment Lease Include?
If you’ve rented before, you know that there are several types of rental lease agreements, and the wording and format can vary by landlord or property management company. While the wording and layout may differ slightly, leases mostly consist of the same information. Because a lease is a legally binding contract, some of its language can be difficult to understand. Here are common apartment lease sections and what they may cover.
|
Lease Section |
What It Covers |
|
Parties and Premises |
Names the landlord and tenant(s) and the full rental address. |
|
Term and Rent |
States the monthly rent amount and the lease start and end dates. |
|
Rental Payments |
Explains due dates, grace periods, and accepted payment methods. |
|
Security Deposits |
Lists the deposit amount and the conditions for getting it back. |
|
Late Charges |
Details any fees owed if rent is paid after the grace period ends. |
|
Utilities |
Clarifies which utilities are included and which the renter is responsible for. |
|
Pets |
Covers applicable pet fees, pet deposits, and any breed or weight restrictions. |
|
Maintenance and Repairs |
Explains responsibility for maintenance, property damage, and how to request repairs. |
|
Right of Entry |
States when and how a landlord can enter the unit. |
|
Lease Termination |
Outlines the rules for breaking the lease or moving out early. |
These are some of the most common lease sections you may encounter when navigating through your lease. They can explain rules, costs, fees, and responsibilities you agree to as a renter. Before you officially enter into a lease agreement, make sure you understand any fees and costs you may have not have noticed.
Common Fees to Look for in Your Lease
Besides your monthly rent payment, a security deposit, and upfront costs like an application and administration fee, there may be other monthly costs you should be aware of before signing a lease. Some other monthly costs you may have are:
- Renters insurance
- Pet fee/deposit
- Internet/cable/technological fees
- On-site amenities
- Trash/recycling
- Pest control
- Package service
A few of these fees can be rolled into the total monthly price of an apartment. For example, a property may advertise that the monthly rent is $1,800. This $1,800 could cover the base rent, plus other costs, like on-site amenities, trash, pest control, and package services. While most states do not require properties to list their total monthly price on a listing (base rent + other monthly fees), many communities advertise this price as it attracts more renters and aids in apartment budgeting.
Renters insurance is a type of insurance that protects a renter’s belongings in case of theft or covered damage from events such as fire or weather-related damages. A renters insurance policy typically includes coverage for personal property, liability, and additional living expenses. Some properties require their tenants to have a renters insurance policy and will utilize a third party to enroll their tenants. If the community you want to sign a lease with doesn’t require renters insurance, this is a monthly cost you won’t have to budget for, though it is highly recommended to keep you and your belongings financially and physically protected.
Understanding Common Apartment Lease Terms
While some lease clauses you encounter may seem straightforward, your lease may include legal terms you don’t recognize. Even if you don’t see these words in your lease, understanding them can make lease documents easier to read.
|
Term |
What It Means |
|
Lessor and Lessee |
The lessor is the landlord or property manager, and the lessee is the tenant. |
|
Lease Start and End Date |
The dates that specify when the lease term begins and ends. |
|
Abatement |
A clause letting tenants pause or suspend rent under certain circumstances, like unsafe living conditions. |
|
Automatic Renewal |
A clause that renews the lease unless the tenant gives written notice by a set deadline. |
|
Notice to Vacate |
A written letter telling a landlord a tenant won’t be renewing, typically due 30 days before the lease ends. |
|
Abandonment |
Leaving a rental without notice while stopping rent payments and utilities. Usually, grounds for eviction. |
|
Holdover Tenant |
A renter who stays in the unit after the lease ends without a new agreement in place. |
|
Quiet Enjoyment |
An implied right to live in the rental without unreasonable disturbance from the landlord or others. |
|
Normal Wear and Tear |
Minor, expected deterioration from everyday living rather than damage caused by misuse. |
|
Implied Warranty of Habitability |
The landlord’s obligation to keep the rental livable and up to code. |
Other Apartment Lease Clauses to Review
There are a couple of miscellaneous clauses that may appear on a lease depending on the community you sign with. For example, some communities may allow subletting, which is when you rent your leased apartment to someone else for a set period. Apartment communities that allow tenants to sublet may outline specific rules and regulations for this leasing option.
A joint liability clause applies to tenants that are planning to rent with roommates. A joint liability clause lays out the shared responsibilities of each tenant living in a unit. In short, it states that everyone listed on the lease is responsible for the entire lease obligation individually, not just certain sections.
If you are renting in an older property, check whether your lease mentions a lead paint warning or disclosure. If your rental was built before 1978, most states require landlords to warn tenants that lead paint may be on the interior walls. Ask your landlord when your rental was built so you are aware of any potential hazards before you sign.
Federal fair housing protections also apply to the rental process. The Fair Housing Act protects renters from discrimination when they are renting or buying a home. If you believe that your landlord is being discriminatory on the basis of disability, race or color, religion, sex, national origin, familial status, or disability before signing your lease or after you have moved in, file a complaint to Fair Housing.
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Leases can feel overwhelming, but Apartments.com can help you research properties before you’re ready to sign one. With advanced search filters, 3D and virtual tours, and integrated tour scheduling, Apartments.com is there for you throughout every step of the apartment search journey up until lease signing day.
Conduct your apartment search with confidence on Apartments.com.
This article was originally published on June 22, 2021 by Olivia O’Brien and has been updated.
FAQs
How do apartment leases work?
An apartment lease is a legal contract between a renter and landlord or property manager that outlines the terms of renting a property. Leases usually include the lease term, monthly rent, and tenant obligations. When a renter signs a lease, they are legally bound to the terms outlined in the document and can be financially responsible for any violations.
What's a 14-month lease, and why would a landlord offer one?
A 14-month lease is a fixed-term lease that lasts for 14 months. Landlords will sometimes offer a 14-month lease term as it ensures tenants stay in a unit during slower leasing seasons and guarantees rental income for over a year at a time.
What's the difference between a lease and a rental agreement?
The main difference between a lease and a rental agreement is the length and structure of the agreement. A rental agreement may be renewed periodically, such as month-to-month, while a lease covers a fixed period of time, such as 12 months. A rental agreement can be a good option for renters looking for a temporary housing solution.
