CHASE - CREDITCARDS

Negotiating a Lease for an Apartment

At first glance, the lease may look pretty complex and technical. When it comes right down to it, a lease is a basic contract. It spells out the terms of a rental agreement for the owner and the renter. Among the details listed in a standard lease are:

• Rental fee

• Payment due date

• Amount of deposit

• Length of the agreement

• Consequences of  breaking the lease

• Payment for utilities

• Pet policy

Read your lease carefully before you sign it because you will be held responsible for everything in it. If you do not understand all the items, take a copy to an attorney or advisor before signing it. Of course, you may not be liable for conditions that are unfair or unenforceable, or any wording that tries to force you to pay for repairs that are the landlord’s responsibility.

Also, make sure you keep a copy of the lease for your records. If there is ever a dispute over items in the lease, you will be glad you have a copy on file.

Other helpful things to know about leases

• Cosigners—You may need to get a cosigner if the landlord does not think you will be able to make your payments. If you default, your cosigner will be responsible for the rent.

• Giving notice—You have to give the landlord advance notice if you are moving out, and the landlord has to give you notice to end the lease or raise your rent. Generally, that notice is 30 days for monthly renters.

• Breaking a lease—A lease is a contract, and there are penalties for breaking the terms. Make sure you know what those penalties are, and only break the lease if you can handle the consequences.

• Security deposit—You may need to provide a security deposit to cover any unpaid rent or damages you cause to the rental unit. This money must be refunded within 30 days of the end of the rental agreement. However, the landlord can deduct the cost of any repairs, other than maintenance from normal wear and tear. There is no set amount for a security deposit.

More General Credit Information