5 Financial Tips to Know Before Signing A Lease

5 Financial Tips to Know Before Signing A Lease
5 Financial Tips to Know Before Signing A Lease
Written by Maggie Bloom

Signing a lease to your new apartment may look like a simple task, but it requires careful consideration. Many are always ready to sign at the dotted line once they see a friendly price and enough space. This rush may be due to home-hunting exhaustion or fear of not finding a better place. However, there are other financial considerations to make to determine whether the home is good enough for you. Discussed below are some matters you should look at before signing the agreement.

1.  What Does the Lease Amount Cover?

Before agreeing with the lease amount, it is essential to know what it includes and what it does not. Most landlords include a rent deposit, which is mostly rent for one or two months, and utilities. However, it is essential to know your financial responsibilities to avoid future conflicts. Inquire about payment of repairs, garbage, and any utilities not included in the rent. In the case of a luxurious apartment such as those at Alta Midtown Park, which has additional amenities like gym and swimming pools, consider inquiring about the regulations governing their use. These questions may have answers in the contract, but clearing up the matter beforehand is beneficial if they are not. In cases where your financial responsibilities will be very high, it would be essential to compare other apartments to make the best choice with minimal costs.

2.  When to Pay and Who to Pay

Generally, rent is payable on the first day of the month, but the tenants have a grace period of five days. However, it is crucial to be sure of the expectation and the mode of payment. It would be best to inquire about what happens in late payment, should you find yourself under a financial constraint. You should also determine whether the amount is payable to an individual or an organization if you lease the apartment through an agent. It will be easier to negotiate payment dates if you deal with the landlord directly, especially if you don’t have a monthly salary. Some places have late fees calculated from the first day of delayed payment. The rate at which they calculate the fees varies depending on the apartment owner.

3.  Sub-Leasing

Sub-leasing is an excellent way to help raise the rent, especially during a financial crisis. However, not all apartments allow you to sublease your house. Some refuse due to security reasons or their own housing rules. It is essential to identify such a clause in the contract if you intend to share your space to raise the rent quickly.

4.  The Period of the Lease

This is among the most critical clauses in the lease agreement. While many leases last for a year, some prefer to shorten or lengthen the period by six months. No matter the length, you should find out the terms of renewing the lease and whether there is an auto-renewal option. Knowing the requirements for leaving before the lease ends is vital if you get a transfer out of town or have to move abruptly. Some people require a month’s notice, but others, as long as three months.

5.  Is the Deposit Refundable?

Most owners refund your deposit as long as the apartment is in good shape as you found it. However, it is imperative to go through the contract to know what it states on how much they refund and the period it will take. Before moving into the house, you also have to tour the whole place and inspect it thoroughly with the owner or agent. Ensure that you notice any damages or issues with the house that require fixing. Having them fixed beforehand will ensure you will not have to pay for what you did not damage. Some lease agreements also need you to repaint the house before refunding your deposit, or they will use your money to do so. Leasing is not just about having a space to live. These financial implications need attention. It is important to survey your options and settle down on what suits your budget best without straining. It is also vital to ensure you settle in a place where you will not strain to pay the rent in due time to avoid conflict with the house owners. Regulations on having pets are an important consideration since you might need to pay a pet deposit for any damages.

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About the author

Maggie Bloom