Top 6 Things to Remember When Signing a Lease Contract for a Condo
Updated: May 20
When signing a lease contract for an apartment or house, it is fundamental to be well-informed and take responsibility for your decision. There are several key details and elements which ensure a smooth renting experience.
In this article, we will explore the top 5 key aspects to remember when signing a lease contract. Keep these in mind when negotiating contract clauses or, even more conveniently, use contract templates already vetted by professionals.
Understand the clauses in the lease contract.
Reading and understanding all clauses is essential. Make sure you are familiar with all provisions, there are no ambiguities regarding the meaning of terms, and unwanted conditions are not included in the contract. Ensuring a good understanding of the lease contract involves careful reading of each clause. It is essential that all parties involved have a clear understanding of what each clause entails, avoiding confusion at a later stage.
Understand your responsibilities versus the landlord's responsibilities regarding maintenance and repairs.
Know who to contact in case of an emergency repair.
Confirm the rent amount, payment methods accepted, due dates, and penalties for late payments. Also, check if there are conditions under which the rent might increase during the lease term.
Read the Entire Lease. Go through the entire document carefully. Understand each clause, especially those related to fees, lease termination, and renewal conditions.
Check the policy on subletting and having guests. Some leases restrict the ability to sublet your condo or have long-term guests without permission.
Make sure that the lease and the building’s management comply with local housing laws and condominium regulations. This can include regulations about rental prices, eviction procedures, and tenant rights.
Set the duration of the lease contract.
Determine the exact duration of the contract, whether it is expressed in months, years, or based on the fulfillment of specific conditions. Clearly defining this period provides certainty regarding the commitments of both parties and establishes the temporal framework of the collaboration. Alongside determining the contract’s duration, establish the conditions for extension or termination. Renewal terms may include options to extend the contract for a specific additional period under predetermined conditions. Note that, according to the law, the lease contract is subject to tacit automatic renewal. Determining renewal or extension conditions provides flexibility and the possibility to continue the collaboration under favorable circumstances for both parties.
Define the obligations of both parties.
Clearly document the obligations of both the tenant and the landlord. Ensure that all aspects regarding maintenance, utility payments, and rent are clearly specified, and that you and your contracting partner have agreed on the property’s expected condition upon return. The lease contract involves the obligatory payment of rent. If rent isn’t a consideration, the contract may not be a lease but possibly a free use contract or even another type of agreement. That is why the rent amount or calculation method should not be omitted from the lease contract.
Nevertheless, be aware of the condo’s rules, such as quiet hours, pet policies, and rules regarding the use of common areas. These can significantly affect your living experience.
Pay attention to the deposit clause.
Typically, security deposits serve to cover potential damage to the property or unpaid rent. Make sure the lease specifies exactly what the deposit can and cannot be used for.
If the lease contract includes a deposit clause, it is essential to determine the conditions for the return of the deposit and how the landlord can use it. Establish the types of repairs that may warrant withholding a portion of the deposit, how the amount retained is calculated, and what happens if the landlord refuses to return it.
To avoid disputes over the deposit at the end of your lease, conduct a thorough walk-through of the condo with your landlord before moving in. Document the condition of the property in detail, ideally with photos or a video, and have both parties sign off on this condition report. This will provide a baseline reference when assessing any potential damages during move-out.
Get a clear definition of what constitutes normal wear and tear versus actual damage. The lease should specify what kinds of damages may result in deductions from your deposit. For example, small scuffs on walls might be considered normal wear and tear, while large holes would be considered damage.
Inspect the property before signing the lease contract.
Inspecting the property before signing a lease contract is an essential practice that provides the parties with the opportunity to assess the condition of the rented condo or house in detail. The benefit of a pre-lease inspection is identifying potential deficiencies or issues related to the property’s condition. Even if the landlord provides a detailed written description of the property, an on-site inspection offers a real perspective on its current state. This includes checking the infrastructure, electrical systems, heating and cooling systems, plumbing, and other key aspects. Identifying potential issues before signing the contract allows the parties to negotiate any necessary repairs or modifications.
Conclusion.
In conclusion, signing a lease contract for an apartment marks a new beginning for both tenants and landlords. It is one of the common contracts signed by individuals every day. Keep the above aspects in mind when negotiating the lease contract, and you’ll have the groundwork for enjoying a successful renting experience. Alternatively, you can seek legal assistance from a lawyer to guide you through the steps of signing the contract.
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