Rental Property Lease Basics

Rental Property Lease Basics

Alright, you've found the perfect rental property, and now your ready to sign on the dotted line. Not so fast, you need to take some things into consideration before signing.

First, how long do you plan on living in the rental, and is there going to be a possibility that you might need to break the lease? If you see your living situation as going to be stable, you shouldn't have a problem signing a long term lease. If for any chance you feel that you might need to break your lease, you should consider a short term, or month to month lease. These shorter term leases, are usually higher month payments, and you give up the security of a longer term lease. But in the event of a living situation change, you will be saving yourself a considerable amount of money.

Second, now that you have decided the term of your lease, you need to negotiate the price. If you are moving into an apartment complex or similar, your chance for negotiating are slim. If you are renting from a private owner, or smaller rental company, you can probably do some negotiating. To do this, you need do some work. You should find out what the vacancy rate is in rentals around the area. If the rate is high, and there are many rentals to choose from, you have greater bargaining power. It's a buyers market, so don't be intimidated by the landlord. Even if you can't haggle on the price, you can ask for other things, like an extra month, free cable, or anything else you can think of. Don't be afraid to ask, they can just say no.

Third, you have the term and price figured out, the lease options need to be settled. Are there any special clauses in the lease that are not to your benefit, like an early termination option for the landlord. Are all your obligations layed out in the lease agreement. Do you know how much wear and tear you will be responsible for, and how the security deposit will be handled. What can you be charged for late rental payments. What are the landlords access privileges for the property. Can the rent be increased during the lease. Make sure you completely understand all aspects of the lease, and if not, talk to a professional.

Lastly, once you have negotiated the term, price, and options, if you are not completely comfortable, do not sign. There are many websites like http://www.rentlaw.com that can give you more information about leasing.

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