Common Terms in a Lease Agreement

As a renter, you need to know what’s in the lease for your new home and how it affects you. We’ve broken down some of the most common sections you will see in a lease with a bit of context on each.

• Effective date and responsible parties
  On a lease, you will see the date on which the lease was signed. Your move-in date may be different. Names of the rental business and/or landlord should also be included.
  
  
• Terms
  This is the start and end date of the lease.
  
  
• Rent and mailing rent
  Renters should know the amount of rent due each month and the date it is due. This section often lets renters know how the rate must be paid (check, direct deposit, etc.).
  
  
• Late fee and return check fee
  The late fee is what you will pay if your rent is received later than the due date (plus any grace period). If a check is returned for insufficient funds, the landlord may require you to pay any bank fees.
  
  
• Security deposit
  This will detail how much is due upfront. The deposit is the amount that the landlord holds back for any stated reasons including things such as breach of lease, excessive damages and processing fees.
  
  
• Authorized minors and other occupants
  This part of the lease agreement states occupancy limits for the household.
  
  
• Residential dwelling only
  The section will explain the use of the dwelling, including items, unlawful activities or excessive gatherings.
  
  
• Move-in and move-out
  This details the conditions of the property to protect the tenant and the landlord.
  
  
• Tenant and landlord responsibilities
  Here is where you will find what each party (renter and landlord) is responsible for.
  
  
• Lease termination
  This clause may appear in your lease and will provide a framework situations where an early lease exit may be necessary.