Rental Lease Review Guide: 8 Things to Check Before Signing

1. Security Deposit Rules

Most states cap deposits at 1-2 months rent. The lease must specify: (a) where the deposit is held, (b) whether it earns interest, (c) timeline for return after move-out (typically 14-30 days). Deductions must be itemized in writing.

2. Subletting and Assignment

Many leases say "no subletting" outright. Negotiate: "Landlord consent not unreasonably withheld." This protects you if you need to move mid-lease for work or family reasons.

3. Who Pays for Maintenance?

The landlord should cover HVAC, plumbing, electrical, roof, and structural repairs. You cover minor items (light bulbs, air filters). If it says you cover "all repairs under $500," multiply by 12 months — that adds up.

4. Rent Escalation Clauses

Fixed rent for 12 months is ideal. If there is an escalation clause, cap it: "not to exceed 5% per year or CPI+2%, whichever is lower." Avoid "market rate adjustment" — that is unlimited.

5. Early Termination

Breaking a lease usually costs 1-2 months rent. But some leases demand all remaining rent plus reletting fees — that could be 10+ months. Negotiate a buyout clause: "2 months rent terminates lease."

6. Pet Policies

Pet rent ($25-50/month) is negotiable. Pet deposits should be refundable unless there is actual damage. "Pet interview" clauses are vague — ask for objective criteria.

7. Guest Limitations

"No guest shall stay more than 7 consecutive days" — fine. But "more than 7 days per year" is excessive if your family visits. Negotiate to 14 consecutive days.

8. Renewal and Notice

Auto-renewal at "market rate" is a trap. Either lock in a fixed renewal rate or require 60 days written notice of any increase. Month-to-month after the initial term is better than auto-renewal at unknown rates.

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