Understanding Your Lease

What is a Lease?
The best way to think of a lease is this: it is a contract that specifies what you and your landlord agree to do and provide to each other.  Since most landlords require you to sign a lease before you move into your new place, it is important to know exactly what you are signing.  A lease outlines the responsibilities and obligations of both the owner and tenant(s) of a particular apartment or house.  It details the rules by which landlords and tenants agree to live.  Once signed a lease governs what landlords and tenants can and cannot do.  Should you become involved in a legal proceeding, courts will generally hold you to everything you have signed.  Leases therefore are documents of extreme importance.
 
Always Read It Before You Sign It
Keep in mind that leases are legally binding.  If you and your roommates sign a lease, you are all bound by the terms of the agreement.  Moreover, you and your roommates are jointly responsible in most cases.  So if your lease states that the rent is $1,000 a month, then (unless your lease states otherwise) you and your roommates are collectively responsible for the entire sum each month.  If one person does not contribute her or his share, then all tenants on the lease are equally responsible for the missing amount.  Be sure that you can count on those with whom you are signing a lease.  Your legal and financial well-being depends upon their reliability. It is highly advisable to have a lawyer look at a copy of the proposed lease before signing it.

A landlord is similarly bound to the terms of the lease.  Once a lease is signed, no one can be made to accept additional provisions while the lease is in effect.  Written leases are not required.  It is up to the parties to decide whether the lease will be signed or not.  If the lease is signed, it is strongly recommend that you obtain a copy of it.  If the landlord seems reluctant to provide a copy or promises that one will be delivered, you may withhold your signature until you actually receive your copy. 

In cases where there is no written agreement, the lease can be enforceable as an oral contract.  Realize that verbal leases, by their very nature, are difficult to substantiate should they become subjects of legal action involving disputed facts.  It is usually in the best interest of tenants and landlords to have a written lease.  If you have never signed a lease with your landlord, do not worry.  If you have been paying rent (and have the receipts or cancelled checks to prove it) and the landlord has accepted it, then you are a tenant and are entitled to all the rights accorded tenants under state law.  In such cases, you do in fact have an oral agreement.  In this case, you should ask your landlord for a receipt every time you pay your rent. 

Paying Your Rent Late
Many leases provide for the payment of late charges if the rent is not paid by a certain day each month.  This charge is supposed to cover the money lost by the landlord as a result of the late payment.  Courts will usually enforce late charges if they are reasonable and are spelled out in the lease.  However, if the landlord knows or should know that your monthly income regularly does not arrive by a certain day, he/she should pick a later date that is fair to both of you and include it as part of the written lease agreement. 

Late charges may not be enforced if the reason the tenant did not pay the rent when due was because the landlord failed to make needed repairs.  Tenants should have proof of bad conditions in the rental.  Courts may not enforce late charges in non-payment of rent cases unless there is a written agreement signed by a tenant stating that late charges are to be considered part of the “rent”.  In either case the tenant may want to consult an attorney before they decide not to pay their rent. 

• Negotiate a different rent due date if it will help you pay the rent on time.
• Understand your lease’s late charge policy.
• Do not pay a late charge if such a charge is not included in the lease you signed.

Renewing and/or Terminating Your Lease
Many yearly leases, if written, will have a section explaining how you can renew the lease.  A yearly lease that is not resigned automatically becomes a month-to-month lease when the written lease expires – unless you have moved out.  Landlords are also bound to the terms of the lease.  Once the lease is signed, changes to the lease can be made, through both the tenant(s) and landlord must agree to sign the amended version of the lease.

Leases may contain clauses detailing the conditions under which the lease can be ended prematurely.  Sometimes a landlord may require only 30 or 60 days notice for renewing or vacating the apartment.  If this is the case, it will say so in your lease.  Otherwise, you are bound to the conditions of the agreement for the entire period set forth in the lease.  If you signed a 12-month lease, then you and your roommates are responsible for, among, other things 12 months’ worth of rent. Likewise, a landlord cannot end a lease ahead of time except under well-defined circumstances, unless one of the few situations occur and in most cases they must tell you in writing what they are doing. 

It is extremely important that you make every effort to uncover problems with prospective rental before you sign the lease.  In addition to visiting units, ask the current tenants about problems they have had with either the structure, the landlord, or any housing code violations at that rental.  You many not uncover anything wrong, but your efforts may mean fewer headaches for the duration of your lease.

Landlords can put clauses into your lease that allow or restrict certain actions in the rental property, and it is incredibly important to be aware of these.  Inspect your lease carefully as you would inspect the physical condition of the rental.  For example, do not sign a lease with blank spaces in it.  Some clauses in leases are there at the discretion of the landlord.  You may come across such items as these:

• No subletting or assigning of the lease is permitted (or not without written consent by the landlord.)
• No pets allowed.
• Tenants must provide the landlord with copies of the keys.
• Tenants are required to obtain rental insurance.

Some clauses in the lease may be illegal, for example:

• Your security deposit is non-refundable.
• Tenants may not have cable television.
• The landlord is not responsible for repair and maintenance of the rental.

When Fellow Tenants Violate the Rent Lease 
If a tenant is violating any part of the lease, bring it to his/her attention.  If they persist in violating the lease, call a group meeting.  Discuss the issue and try to come to an acceptable resolution to the matter.  He/she should understand that their actions could cost them time and money, especially if the problem results in a court action.  Remember that all of you signed the lease.  This (generally) makes each tenant individually and jointly responsible for every legal provision in the lease.  One person’s violation of the lease is the responsibility of all the tenants.  If you fail to pay your rent, the whole group is in default – unless you make up the difference.  Depending upon the seriousness of the violation and the nature of your relationship, you may want to speak to the landlord about the matter.  Some landlords will help you exert pressure on the offending party.  In some instances, you may want to consult with an attorney.