How to navigate a rental agreement or an apartment lease

What is a lease agreement?

A lease is a legal document, or contract, that defines the terms of an agreement between two parties: the lessor and the lessee. In context of renting an apartment, the apartment lease is a contract between the landlord (the lessor) and the tenant (the lessee). Signing a rental agreement before moving into a new rental property is important because it clarifies the rules and expectations for both lessor and lessee, and it legally binds both to upholding their end of the agreement.

Rental agreement vs. apartment lease

Rental agreements and apartment leases both have the same intention—they’re legal documents that define a contract between a landlord and a tenant. The term rental agreement is typically used for a short-term rental—such as a two-week vacation rental—whereas the term apartment lease typically refers to a longer-term agreement of up to one or two years.

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How to read a lease agreement

Whether you’re looking at a rental agreement for a short-term stay or a long-term apartment lease, both will outline the same set of expectations and will likely include similar terms. Most leases and rental agreements will include the following components:

• Names: Your apartment lease or rental agreement should state the name of the lessor (your landlord or the management company) and the name of the lessee (your name). If there are multiple tenants in a unit—if you’re sharing an apartment with a partner or a few roommates, for example—the lease should include all rent-paying tenants’ names.
• Contact info: Most leases and rental agreements require contact details for both parties, like an address and phone number.
• Rent: The lease and rental agreement should clearly state the amount of rent due per month or per the rental period. If required by the lessor, the lease or rental agreement should also state the amount of the security deposit, move-in fees, pet fees, or other associated fees.
• Length of rental period: Whether you’re signing a rental agreement for one week or a lease for a year, the lease agreement should include the dates that the rental agreement or lease is active.
• Information on lease termination: Your lease or rental agreement might include the consequences of the tenant terminating a lease early (typically a fee) as well as the terms in which the landlord can terminate the lease early.
• Information on what’s allowed and not allowed on the property: Many leases and rental agreements will outline activities that are not permitted on the rental property. These terms might include the building’s quiet hours, if you can paint your walls, and stipulations against having parties or practicing illegal activities.
• Rules on subletting: Many apartment leases and rental agreements will state if a lessee is allowed to sublet the rental property.
• Signatures: A lease must be signed by both the lessor and the lessee to be valid and legally binding.

Can you negotiate a lease agreement?

Until a lease or rental agreement has been signed, you can absolutely negotiate the terms of your contract. Often, lease negotiations involve reducing the price of rent, but you can also negotiate other terms of your lease, such as the services the landlord provides for you or an adjustment of the security deposit. However, don’t forget that in some states, unless something is in writing, it is not legally binding! So, if you do negotiate the terms of your lease agreement, make sure both you and your landlord sign the updated contract.

A rental agreement or apartment lease shouldn’t be daunting. With an understanding of the basic components, you should be able to navigate any rental agreement and feel confident negotiating aspects that you feel are unfair. And once you get signing the lease out of the way, you can move on to the fun part—moving day!