Your first apartment can feel overwhelming—pages of legal text and confusing terms. But understanding what you're signing is essential to protecting yourself and your money.
What Is a Lease?
A lease is a legally binding contract between you (the tenant) and the or property management company. It spells out:
- How much you pay and when
- How long you can stay
- What you can and can't do
- What happens if something goes wrong
Watch Out
Once you sign, you're locked in. Read everything BEFORE signing, not after.
The Key Sections Every Lease Contains
1. The Parties and Property
- Your legal name (spelled correctly!)
- Landlord's name or management company
- The exact address and unit number
- Who's on the lease (roommates must usually be listed)
Pro Tip
Everyone on the lease is typically "jointly and severally liable"—meaning if your roommate doesn't pay, YOU owe their share.
2. Lease Term
| Type | Typical Length | Pros | Cons |
|---|---|---|---|
| Fixed-term | 12 months | Locked-in rent | Penalty to break early |
| Month-to-month | Ongoing | Flexibility | Rent can increase anytime |
Move-in date and move-out date should be crystal clear.
3. Rent Details
Key items to verify:
- Monthly amount
- Due date (usually the 1st)
- Grace period (often 3-5 days)
- Late fee amount
- Acceptable payment methods
- Where to pay (address, portal, etc.)
Watch Out
Some landlords charge a fee for paying by credit card (2-3%). Factor this in if you wanted to earn rewards.
4.
Your is typically 1-2 months' rent held by the landlord.
Know these rules:
- Maximum allowed (varies by state)
- When it must be returned (usually 14-30 days after move-out)
- Reasons they can keep it
- Whether it earns interest (required in some states)
5. Utilities
Confirm what's included vs. what you pay:
| Often Included | Usually Your Responsibility |
|---|---|
| Water/sewer | Electric |
| Trash | Gas/heating |
| Common area electric | Internet/cable |
Ask for average utility costs from the landlord or previous tenants.
6. Rules and Restrictions
Common restrictions that catch people off guard:
- Pets — Allowed? Pet deposit or monthly pet rent?
- Guests — Overnight limits? Extended stay rules?
- Noise — Quiet hours?
- Parking — Included? Extra fee? Guest parking?
- Alterations — Can you paint? Hang things?
- Subletting — Allowed? Under what conditions?
7. Maintenance and Repairs
Know who's responsible for what:
| Landlord Responsibility | Tenant Responsibility |
|---|---|
| Major appliances | Light bulbs |
| Plumbing/heating | Minor clogs |
| Structural issues | Keeping clean |
| Smoke detectors | Reporting problems promptly |
Get the process in writing:
- Emergency contact number
- Response time expectations
- How to submit maintenance requests
8. Breaking the Lease
Life happens. Understand the consequences:
- Early termination fee (often 1-2 months' rent)
- Required notice period
- Conditions that allow penalty-free exit
- Your obligations if you leave early
Red Flags to Watch For
Avoid This
Automatic rent increases — Some leases include annual increases written in. Make sure you know what you're agreeing to.
Avoid This
Vague repair language — "Landlord will repair at their discretion" gives them too much wiggle room.
Avoid This
Excessive fees — Application fee over $50, administrative fees, move-in fees that seem duplicative.
Avoid This
Waiving your legal rights — Some clauses try to limit your state-protected rights. These are often unenforceable but concerning.
What You Can Negotiate
Yes, you can negotiate! Especially in a renter's market:
| Negotiable Item | How to Ask |
|---|---|
| Monthly rent | "Would you consider $X if I sign today?" |
| Move-in costs | "Can we spread the deposits over 2 months?" |
| Lease length | "I'd prefer 6 months at a slightly higher rate" |
| Pet policy | "Can we add a pet with a reasonable deposit?" |
| Parking | "Is there flexibility on the parking fee?" |
| Amenities | "Can you include WiFi?" |
Before You Sign: The Walk-Through
Document everything during your move-in inspection:
- Take photos and videos of every room
- Note existing damage on the move-in checklist
- Test all appliances
- Check water pressure and drains
- Look for pests
- Test all windows and locks
- Email yourself the documentation (creates a timestamp)
Pro Tip
This documentation is your proof when you want your back.
renter's insurance
Most leases require renters insurance, and you should want it anyway:
- Costs $15-30/month
- Covers your belongings if stolen/damaged
- Covers liability if someone gets hurt
- Required by most landlords
Our Building tier lesson on insurance deep-dive covers how to choose the right policy.
Going Further
Once you're in your apartment, you'll want to:
- Set up a budget that accounts for all housing costs
- Build an for unexpected expenses
- Understand whether renting vs buying makes sense for your situation
Our Rent vs Buy Decision lesson in the Building tier helps you evaluate when homeownership might be right for you.
Quick Win
Before signing, take the lease home and read it overnight. Never let anyone pressure you into signing on the spot. Ask questions about anything unclear—good landlords expect this.