How to Understand Residential Lease Agreements
The residential lease agreement is a written contract between the landlord and tenant. The tenant agrees to pay an agreed-upon sum of money for rent once each month in consideration for living in the space owned by the landlord. The lease agreement outlines how the tenancy is to be governed between the parties.
Instructions
- 1
Read the top of the agreement for the names of the landlord and tenant, the amount of rent and its due date. The security deposit is also included, which generally equals one month of rent, depending on the lease.
2Read the lease provisions for the tenant's duties and responsibilities. Examples of typical duties may include the payment of utilities, keeping the premises in good working condition and carrying tenant's insurance. The lease may place restrictions upon subletting the leased space, having pets, parking and how long guests may stay in the leased premises.
3Review the lease for any addendums. An addendum is an additional document that specifically identifies any special arrangements between the owner and tenant. It's part of the lease agreement and has the same legal effect. An example of an addendum may itemize the appliances included in the tenancy.
4Gain a basic understanding of some important landlord-tenant laws. For example, owners need to be in compliance with the implied warranty of habitability and foreclosure rights, regardless of the lease terms. Landlords must provide a safe place to live for tenants, and if the building goes into foreclosure, the tenant may stay in the leased property until it expires, as long as the new owner does not plan to occupy the property.
5Understand that a breach of a residential lease agreement could result in legal consequences. If the tenant does not pay the rent or damages the premises, the landlord may withhold the security deposit and file a lawsuit for the amount not covered by the security deposit.
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