When you rent a home or an apartment, the final steps before moving in seem to be just about signing your name in a few particular places — on the bottom of a contract and on checks for rent and a security deposit. Now, certainly you realize what signing a check means, but are you sure about that contract you signed as well?
As the managing partner of ASM Properties, a sought-after property management company, Jon Selinger has seen hundred of rental contracts pass before him, so he knows all the basics and all the important details. Here, he outlines what you are really filling out and agreeing to when you sign on those dotted lines.
First, says Selinger, there are the basics which pretty much confirm who all of the parties involved in the agreement are, and are pretty universal for every rental contract:
- The tenant’s name
- The landlords’ name
- The address of the home or apartment
- Scheduled move in date
- Anticipated move out date
- The cost of rent each month
- Cost of security deposit
- List of any utilities that are included in the rent
Every state in the country is different when it comes to rental contracts, he adds, so it is critical that you abide by the laws in your particular area. Otherwise the contract you sign may not hold up in court. In Tennessee, for example, Selinger admits that there are particular quirks that a contract must entail. For the most part, though, you will have to include specific details for:
- How damages can be reported. Usually this is done by calling the property manager or landlord, and filling out accompanying paperwork if necessary.
- Early termination procedures, including any fees associated with ending a lease prematurely.
- Requirements that must be met prior to the tenant moving out of the space, whether it is repainting walls or just handing in the keys.
- The details of what needs to be done to get the security deposit back at the end of the lease agreement.
At ASM Properties, Selinger explains that every contract is carefully drafted and reviewed by real estate attorneys. This is really so that both sides are equally protected, he adds. You need the contract to be enforceable in court. Otherwise a tenant may discover that he can’t get his security deposit back, or a landlord may have a tenant who doesn’t have to be held accountable for costly repairs that exceeded the amount of the initial deposit.
And while it is usually not necessary, if you are uncomfortable at any time with the details of your particular contract, it may also be wise for you to have it reviewed by your own lawyer so that everything is clear to you prior to agreeing to the terms.
