Is This Lease Agreement Fair? 9 Things to Check Before You Sign

How do I read a lease without getting lost?

Read it three times: once for money, once for dates, once for duties. Money means rent, deposit, fees and penalties. Dates means start, end, notice periods and renewal. Duties means who fixes what, who pays for what and who can enter. Mark anything you do not understand and ask about it in writing, because verbal promises are hard to prove later.

1. Rent, deposit and fees

Check the exact rent, when it is due, and what happens if you pay late. Look for fees you did not expect: admin fees, move-in fees, pet fees, parking, and "convenience" charges for paying rent online.

Bad"Tenant shall pay late fees and any other charges as determined by Landlord."

Better"A late fee of $50 applies if rent is more than 5 days late."

Open wording like "as determined by Landlord" lets the amount change after you sign. Some places cap deposits and late fees by law, so check the local rules.

2. Automatic renewal

Bad"This lease renews automatically for a further 12 months unless Tenant gives 90 days written notice."

A long notice window is easy to miss, and missing it can tie you to another year. Put the notice deadline in your calendar the day you sign, or ask for a month-to-month option after the first term.

3. Ending the lease early

Look for the cost of leaving early. Some leases ask for all of the remaining rent. Others charge one or two months. Ask whether you can sublet or find a replacement tenant, and whether the landlord must try to re-rent the place.

4. Repairs and maintenance

Bad"Tenant is responsible for all repairs and maintenance."

Better"Landlord is responsible for structure, plumbing, heating and appliances provided. Tenant is responsible for damage caused by tenant. Landlord will respond to urgent requests within 48 hours."

A fair lease lists duties for both sides and gives a timeline for urgent problems. In many places landlords must keep a home habitable whatever the lease says, so a clause that pushes everything to the tenant may not hold up. Check local law.

5. Landlord entry

Bad"Landlord may enter the premises at any time."

Better"Landlord may enter with 24 hours written notice, except in an emergency."

Many places require notice before a landlord enters. A lease should not take that away.

6. Damage and the security deposit

Look for how "normal wear and tear" is defined and whether there is a move-in inspection. Without a record of the condition on day one, deductions are hard to dispute. Take dated photos and keep a copy of any checklist you sign. Check how fast the deposit must be returned and how it is held.

7. Rules on guests, pets and subletting

Rules are fine when they are specific. Watch for flat bans that conflict with your plans, such as no overnight guests or no pets at all, and for fees that grow each month. Get any exception in writing.

8. Utilities and extra costs

Which utilities are included, and is there a cap? "Tenant pays all utilities" can include shared meters or building charges. Ask what the last tenant paid.

9. Anything vague, missing or one-sided

Watch for phrases such as "at Landlord's sole discretion", "as Landlord deems necessary" and "Tenant waives all claims". Be careful with a clause that waives your legal rights, or one that makes you pay the landlord's legal fees but not the reverse. Some of these clauses are unenforceable in some places, but you should not have to find that out after you sign.

Warning signs outside the lease

• The landlord will not let you see the home before signing.
• Rent is far below similar places and you are asked to pay before viewing.
• You are pressed to sign today.
• The person you deal with is not the owner and cannot show authority.

Questions to ask the landlord

1. What is the total I pay before I move in?
2. What is the notice period for ending the lease, and for renewal?
3. How are repairs requested, and how fast are urgent ones handled?
4. How much notice do you give before entering?
5. Can I have the move-in checklist in writing?