What To Watch Out For In Lease Agreements

In most rental situations, the landlord provides certain services and the tenant is responsible for the rest. In general, the owner only provides the services listed in the rental agreement. If there are others you want to include, you must negotiate them before signing the lease. This may require a higher rent, and you`ll need to determine if it`s worth the extra cost. Hakim points out that “landlords must inform tenants in advance of rent increases greater than 5% or if they do not intend to renew a tenant`s lease.” A lease is a contractual agreement and, as with any contractual agreement, it is legally binding. So, before you commit to a lease, it`s important to know what you`re getting into. Mark Hakim, a real estate lawyer at the law firm Schwartz Sladkus Reich Greenberg Atlas, says your leverage on a lease may depend on the market. Here`s an example of 11 tenants who lived on the campus of Star Academy, a former state estate near Custer, S.D. Some of the tenants had rented for 14 years with monthly leases. When the state forcibly sold the property at auction, it gave tenants 30 days` notice to move. According to government guidelines, all contracts – including leases – must be written in plain English, so I hope you`ll be able to distinguish the dotted “i” from the crossed “t”.

However, despite these guidelines, some contracts are ridiculously difficult to conclude. With Brick Underground`s gross rent calculator, you can easily calculate your gross rent, make quick comparisons between apartments, and avoid costly surprises. All you need to determine your gross rent is 1) the actual net rent, 2) the duration of your lease, and 3) the number of free months your landlord offers. [Tip: Bookmark this page for easy reference!] Your contract should also describe in detail what your rent covers – for example, does it include hereditary building rights and municipal tax? Usually, electricity bills are left to the tenant? “Homeowner`s insurance doesn`t cover the tenant, contrary to the opinion of many people,” says Jeff Schneider, a home insurance broker at Gotham Brokerage (a sponsor of Brick Underground). “The tenant must insure his own property against fire, theft and water damage and must also carry his own liability insurance, which protects him if he is sued for negligence – to start a fire that destroys part of the building or, more commonly, to let a bathtub or sink overflow and damage the apartment underneath.” There are pros and cons to both types. A monthly lease gives the tenant the minimum commitment and maximum flexibility. .