Renting a property involves more than just finding the right space; it requires a careful examination of the lease agreement to ensure you will be legally protected in the transaction. Unfortunately, many renters overlook crucial details that could lead to problems down the line.
Though not exhaustive, we listed five red flags commonly missed in leases that renters should pay close attention to.
A Large Late Rent Fee
While late rent fees are a standard part of most leases, some agreements may include exorbitant penalties that renters often overlook. Typically, late rent fees range between 3% and 5%. However, some landlords list as much as or more than 10% in late rent fees in the lease.
Ensure you are aware of the late rent fee outlined in your lease and confirm it aligns with local regulations. Unreasonably high late fees can quickly escalate, putting tenants in a financially precarious situation and potentially straining the landlord-tenant relationship.
Any Language That Allows the Landlord To Make Changes to the Lease
Leases should provide stability and security for both parties involved. However, some agreements include clauses that grant landlords the authority to make changes to the lease terms during the lease period. This could lead to unexpected alterations in rent, policies, or other crucial aspects of the agreement.
Tenants should carefully scrutinize the lease for any language that allows the landlord to unilaterally modify the terms without proper negotiation or notification. Similarly, tenants should also look out for incomplete lease agreements (missing rent amount of vague wording).
Mold Remediation Clause
Mold issues can pose health hazards and cause significant property damage. Some leases may contain clauses that make tenants responsible for mold remediation costs, even if they are not liable for mold. For example, mold caused by a burst pipe between floors should be the landlord's responsibility, not the renter's. In some cases, mold waivers state the landlord has yet to test the property for mold.
No Clause on Who's Responsible for Repairs
Leases should clearly outline responsibilities for property maintenance and repairs. Some agreements, however, may lack clarity on this crucial aspect. A lease without a specific clause on repair responsibilities could lead to disputes and delays in addressing issues. Tenants should ensure the lease clearly defines which party is responsible for repairs, maintenance, pest control, and associated costs.
Extra Fees and Agreements
Carefully review the lease for any additional fees or agreements that may not be immediately apparent. Some leases include provisions for extra charges, such as pet fees, parking fees, or utility agreements. Failure to recognize and understand these additional costs can lead to unexpected financial burdens.
