Reviewing a Lease Checklist: 12 Terms Tenants Should Look For

A lease agreement is a binding legal contract, so all parties should know what it says and what it includes. Signing a lease requires due diligence from both parties—the renter and the landlord. Carefully review the contract before signing to fully understand your obligations and responsibilities.

This article covers what to look for when reviewing a residential lease. A lease is a contract, and you’ll want to be sure you understand all its terms before signing. If anything is unclear, a local landlord-tenant attorney can explain the terms and make sure the agreement protects your interests.

1. Type of Lease: Fixed Term or Month-to-Month?

The type of lease or term of the lease should be clear. Most residential leases are either fixed-term or month-to-month. A fixed-term lease has a specific start and end date. A month-to-month lease continues until either the landlord or the tenant gives notice.

2. Parties to the Lease

The lease should refer to the renter/tenant as the “lessee” and the landlord as the “lessor.” The lease should include the names of all adults living at the rental property. It should also identify the landlord, property owner, or property management company leasing the unit.

3. Property Description

The lease should describe the rental property. This description should include the physical address and the number of bedrooms and bathrooms.

You signed a lease, but show up on moving day to a unit that looks nothing like what you were promised in the lease agreement. If the property description in the lease doesn’t match the actual space, you have legal options. Talk to an attorney near you.

4. Rent Amount

Although there may be room for negotiation, many landlords are upfront about rent. Lease negotiations are more common with commercial real estate transactions. A residential lease should include the tenant’s rent amount per rental period. For example, if the lease is month-to-month, the rental period is one month.

Residential leases should also include acceptable payment methods, where to pay the rent, and late fees, if any.

5. Security Deposits

Most rentals require a security deposit. A security deposit is a refundable sum a new tenant pays to guarantee their obligations under the lease agreement. For instance, if a tenant doesn’t clean their apartment before moving out, the landlord can deduct cleaning costs from the security deposit.

State law regulates security deposits, so make sure the lease complies with state law.

6. Termination of Lease

How much advance notice must the tenant give before moving out? Will the lease automatically renew if the tenant doesn’t give notice? Are there any penalties for early termination?

7. Occupancy

The lease should specify whether it is a residential or commercial lease and list the names of the parties occupying the rental property.

8. Pet Policy

Residential leases should include a pet policy. A pet policy outlines whether the landlord allows pets on the property. The policy should also state how many pets are allowed and any size or breed restrictions.

9. Sublease and Assignment

Can you sublease or relet the rental property or assign your tenancy to a third party? If you cannot fulfill the lease terms, subletting may be an option if the landlord agrees. If your lease doesn’t address this, ask the landlord before signing.

Often landlords will allow subletting as long as they approve the sublessee first. Subletting may come with fees, so ask about those as well.

10. Maintenance and Repairs

What are the landlord’s responsibilities for making repairs and performing routine maintenance? For example, who shovels the sidewalk in the winter? Who will fix your dishwasher if it breaks?

11. Right of Entry

Clarify the times and conditions when your landlord may enter the rental property without permission. Typically, landlords can enter the property without permission if there is an emergency, to make a repair, or to show the apartment to a prospective tenant. Most landlords will give at least 24 hours’ notice before entering.

12. Commercial Lease Agreements

Commercial real estate and commercial lease agreements differ from residential properties and leases. Many business owners need commercial space or office space to run their businesses. Local zoning laws dictate where real estate investors can build commercial property.

Lease negotiations are common in commercial leases because businesses have different options. Most businesses use a net lease or a gross lease. The company pays base rent and operating costs, like electricity, in a net lease. In a gross lease, the property owner pays the operating costs.

Get Legal Help With a Lease

Real estate laws are complex for individuals and small business owners. Whether you’re a renter or a property owner, having an attorney review a lease can be beneficial. An experienced attorney can spot red flags, illegal clauses, or terms that aren’t in your best interests. Most residential leases last at least a year, and extra due diligence now can protect you from potential issues later.

FindLaw’s directory of landlord-tenant lawyers can get you started. Enter your city or ZIP code for a list of legal professionals in your area. Because state and local laws are relevant, your attorney should be licensed in the state where the rental unit is. Your search results will also show important details about prospective attorneys, like ratings, areas of practice, and whether they offer free consultations.