Signing a lease is an important step whether you’re renting your first apartment, moving into a new home, or securing a space for your business. A lease agreement is more than just paperwork—it’s a legally binding contract that sets the tone for your rights and responsibilities as a tenant or landlord. Before putting pen to paper, it’s essential to carefully review the terms to avoid future disputes or unexpected costs.
Here are five key things to review before signing a lease agreement:
1. Rent and Payment Terms
Make sure the lease clearly states the amount of rent, when it’s due, and how it should be paid (check, online transfer, direct deposit, etc.). Review whether there are any late fees, grace periods, or penalties. For commercial leases, check if rent increases are tied to inflation or other adjustments.
2. Lease Duration and Renewal Options
Is the lease month-to-month, one year, or longer? Understand the start and end date, as well as whether the lease renews automatically or requires a formal renewal. For long-term commitments, look for clauses that outline rent adjustments upon renewal.
3. Maintenance and Repairs
The lease should clearly define who is responsible for maintaining and repairing the property. Tenants are typically responsible for minor upkeep, while landlords must ensure the property is habitable and safe. If you’re a commercial tenant, pay close attention to any obligations for repairs or upgrades—you don’t want to be stuck with unexpected expenses.
4. Restrictions and Rules
Every lease has rules—some common, others more specific. These may include restrictions on pets, smoking, noise, or business activities. For commercial tenants, there may be limitations on signage, hours of operation, or property modifications. Make sure these align with your lifestyle or business needs.
5. Security Deposit and Termination Terms
Review the amount of the security deposit, conditions for withholding it, and the process for getting it back when you move out. Also, check the termination clause—what happens if you need to break the lease early? Are there penalties, or can you sublet? Knowing these details upfront can save you from costly surprises.
Final Thoughts
A lease agreement may seem straightforward, but the fine print matters. Taking the time to carefully review the terms before signing can prevent disputes and ensure a smoother experience.
