Picture this. After weeks of house hunting and rental application filling, you finally find the ideal location. After one or two days of moving in, you discover that the unit isn’t as unique as you thought. Your electric bill is higher than usual, the HVAC system is broken, and the landlord has peculiar rules and doesn’t respond to your queries the way they should.
While this was just a made-up scenario, it can pose many problems if you don’t consider and understand the necessary aspects before signing a commercial lease. Also, without the essential research, you’ll end up shelling out more money than you should and agreeing to terms and circumstances you shouldn’t. To ensure your experience is positive, here are some things to remember before signing a lease.
- 1 Share your expectations
- 2 Does the rent have a grace period?
- 3 Read the lease thoroughly
- 4 See if you’ll need a cosigner
- 5 Discover the building guidelines
- 6 Set your lease’s conditions
- 7 Pay attention to renters’ insurance
- 8 Talk about any alterations you have in mind for the place
- 9 See the maintenance schedule
- 10 Check what the rent includes
- 11 Conclusion
- 12 Author
It would be beneficial if you told the property owner what you expect. A leasing agreement is a shared decision. Your pleasure is crucial because they are not giving away living quarters. Tell the landlord exactly what area you want, any worries you may have, and how they can make your move more successful.
Does the rent have a grace period?
Learning this information will be helpful if your payment is typically paid later than expected or if you own your own business. Most landlords demand that rent be paid on or before the fifth of each month. While payments can be late, don’t assume this is the case.
Find out in advance if there is a grace period for paying your rent and when it should be cleared. You can also view the latest GASB 87 guide to get a gist of the financial reporting standard established by the government and how you are supposed to act on it.
Read the lease thoroughly
Before signing any lease agreement, it’s also essential to read it. Although many people might find this stage disappointing, it is one of the most important. If you are unfamiliar with federal and state rules, you can seek the advice of a legal professional.
You should also be on alert for any illegal clauses. You can sign the lease once you’ve read it through thoroughly and are happy with the conditions. If there are any terms and conditions you disagree with, talk to the property owner about them. They could be prepared to make particular compromises if you present a compelling case.
See if you’ll need a cosigner
You might require a cosigner if you lack credit or your salary isn’t nearly sufficient to cover the rent. If this is the case, the apartment management will inform you after you apply. A cosigner is a person who does not reside with you but agrees to pay the rent if you cannot. Requesting a parent or other member of your immediate family as a cosigner may be appropriate.
Some businesses will cosign for you for a fee if you’re uncomfortable placing a parent or relative in that position because this is a significant obligation. The cost of a guaranteed service typically ranges from 4–10% of the annual rental fee.
Discover the building guidelines
Discovering the building policies is another crucial step. Even though landlord-tenant rules provide ownership rights, landlords have some control over what happens within the home. Concerning the owner’s regulations about alterations, smoking, and pets, be sure to be specific. If you disagree with their rules, you should think twice before renting the house. The last thing you want is to sign a one-year contract that you don’t like.
Set your lease’s conditions
A common misconception among tenants is that all leases are substantially the same. But not only is this untrue, but a lot of what people believe to be included in a typical lease is false. Together with the landlord, decide on the lease’s duration. Talk about what might occur if you had to end it sooner. Get specific about your downpayment. Don’t just accept the first contract that is given to you.
Pay attention to renters’ insurance
Before you skip this section, let us explain the significance of renters insurance. Although the subject isn’t fascinating, you should think about purchasing this.
Renters insurance safeguards your possessions. The property’s insurance covers only the building; the belongings are not. Your renters’ insurance will typically cover the costs if something unfortunate occurs and your possessions are harmed. Many policies for renters’ insurance cover private residences and additional living expenses if a natural catastrophe or other unanticipated occurrences damage your home. Renters’ insurance is affordable and a brilliant idea.
Talk about any alterations you have in mind for the place
Most leases forbid making alterations to the apartment’s interior. But this is an issue that is frequently negotiable. A landlord might agree to make these changes if they increase the value of the apartment. Or if a larger security deposit is agreed upon to cover the expenses of restoring the apartment.
See the maintenance schedule
Even though the unit you want to rent may appear to be in decent condition, there can be issues hidden behind each ceiling beam or floorboard. Ask the owner when the property was last maintained and if they have routine maintenance. When maintenance difficulties arise, they will not be your duty. Some owners may perform shoddy work or fail to handle these matters properly.
Check what the rent includes
Along with the tour, you must also go over what the rent will cover. Rental agreements may vary depending on the property type, location, and duration of the lease. It would be helpful if you didn’t assume anything. Find out which utilities your landlord will pay for and your responsibilities.
For example, some landlords may pay the electricity bill, leaving you responsible for paying the Wi-Fi, gas, and water bills. Others, particularly holiday rentals, could take care of everything. Ask whether there are any additional expenses not included in the rent. Some contracts require renters to pay additional fees such as maintenance, security, parking, or estate costs in addition to their monthly rent.
A lease is a contract that binds a tenant and a landlord. As a result, you must keep these pointers in mind before signing the lease. Proper inspections and communication are essential to ensure your potential house is right for you. If the landlord doesn’t cooperate with you, the best approach would be to contact the property manager.