Avoid These 8 Common Mistakes Before Signing Your Next Lease
From not checking the reviews of the leasing agent to not factoring in additional costs.
Owning a home isn't right for everyone. Whether you're living overseas, you can't afford to buy, or you simply don't want to, there are many benefits to signing a lease on a rental property. To increase your likelihood of renting the right home, it's crucial to assess your wants and needs and to understand your rights as a tenant.
Make sure you read the lease thoroughly and that you're 100% confident that you understand and agree to what you are signing. Once you understand your rights and responsibilities, you are now ready to sign the lease with the landlord or agent. There will be different laws for different states, cities, and countries so ensure you are familiar with your specific location.
Below, we look at eight of the most common mistakes people make when they sign a lease.
1. Not knowing the penalties for early lease termination
Ideally, you'll love your rental home and stay until the lease is up, but if there's a sudden reason you need to terminate your lease early e.g. sudden change of jobs or emergencies, it's worth being prepared and knowing before you sign what the penalties for doing so are — you’ll appreciate knowing the details in advance.
Similarly to the above, you’ll want to make sure that you fully understand policies for everything, including late rent, subletting, pets, roommates, visitors, parking, etc. Rental laws vary by state and even city so make sure you know about anything that may become an issue later down the track. If there is anything you don’t understand ask the agent or landlord. Or ask for help from someone you trust.
Mold is caused by moisture, and it can become a health hazard – not ideal in your home. Knowing whether there is mold in your rental home before you sign the lease might change your thoughts on whether or not you're interested in living there. For information on mold rules and regulations in your state, check with your state department of environmental protection or your state department of public health.
Before signing take a look if there are any complaints/bad reviews about the leasing agent because they are the vehicle through which any issues are resolved. If the reviews are bad you may be setting yourself up for issues in the future.
You shouldn't be asked to put forward a bond greater than the amount specified generally. The bond should not be more than one month's rent unless the rent is more than $900 per week. The bond you paid at the beginning of your tenancy will usually be refunded in full, unless; you owe the landlord or agent money, or, there is damage to the property.
Real estate photography is notorious for making properties look as flattering as possible. Signing a lease before you've physically been in the property can lead you to be disappointed with your living situation and miss out on seeing the potential issues. If you're living in a city like New York City which has a highly competitive rental market you might need to put in an application before you've seen the home. After your application is approved, the landlord will expect you to sign the lease and deliver the certified checks within a very short time. In this instance, go and visit the property ASAP or ask someone you know to, and don't sign until you know for sure you're happy with it.
While the rental agent should take photos before you move in of each of the rooms, it's a good idea to take your own photos or video of the property before moving in. This ensures if anything is brought up at the end of the lease you can provide evidence for prior damage etc.
When looking for a rental property we might end up focusing solely on the rental fee and not any additional costs there may be. When considering signing a lease, make sure you're aware of the full costs: utilities, parking, insurance etc.
