6 Things You (And Your Landlord) Must Know Before Signing Rental Lease

6 Things You (And Your Landlord) Must Know Before Signing Rental Lease

Tenants: After searching for your new home or apartment to rent you are ready to sign the lease. However, know 6 things you (and your landlord) need to know before signing rental lease.

Landlords: Besides tips for tenants, we provide some for landlords too.

As a tenant, knowing your rights before you put your pen to the lease agreement will save you from stress. Once the lease agreement is signed it controls most rental disputes.

KEY TAKEAWAYS

• Learn how to see if you can afford the rent. Landlords don’t waste time with tenants who can’t pay the rent.
• Inspect the entire property for damages. Landlords should do the same and fix all damaged items.
• Understand what the rent includes. Landlords need leases clarifying what’s included.
• Can you do alterations after moving in? Landlords must specify what alterations to allow.
• Understanding the lease terms. Landlords need to write lease terms understood by tenants.
• What to expect at the lease signing. Landlords need to explain what tenants should bring to the lease signing.

 

To help you, we provide 6 major steps to consider before signing a lease.

 

1. Affording the Rent

 

Don’t sign a lease agreement until you know that you can afford to pay the rent during the entire lease period.

Having enough money for the first three or six months on a year’s lease won’t cut it. You must budget your income and expenses to see what you can afford.

Experts agree that the rule of thumb for calculating your rent-to-income ratio is:

Your Monthly Gross Income of at least Three Times your Monthly Rent.

Many landlords and property managers use this ratio to approve applicants because it shows the minimal risk of paying the rent.

Exception: WeLease only requires monthly gross income 2.5 times of monthly rent. Contact us to learn more.

So, you must use this same formula to see if your current income meets the ratio.

Your Credit Score: Another fact that determines your risk of paying rent is your credit score based on your credit history, open credit accounts, level of debts, and repayment history. A credit score between 300 to 850 with the highest scores shows creditworthiness. It indicates the probability that you can repay loans promptly.

Note: If you fail the rent-to-income ratio and/or have a low credit score you may still get approval if you provide a qualified cosigner. A cosigner agrees to make all the rent payments if the tenant can’t. The cosigner signs the lease agreement holding him or her responsible for paying the rent. You can use a well-off relative as a cosigner.

Landlords: Know the minimum credit score you will accept. Will you allow a cosigner?

 

2. Fully Inspect the Property for Any Damages

 

When you tour the rooms and hallways from top to bottom look for any broken appliances or damages. Take smartphone photos to remember and record the damage. Ask the landlord or property manager about the damages and when they will repair them.

Inspect the inside and outside for holes or door and windows problems. Make sure the electrical components work along with all lighting and look at the electrical panel to see if they use modern circuitry and the electrical wiring looks good.

Test the water pressure in every faucet, sink, shower, bathtub, and toilets flush properly. Make sure the appliances function. Turn on the air conditioners, fans, and heaters,

Always record every defect and ask the landlord or property manager to fix them before you occupy.

Landlords: Inspect the rental unit and fix all damaged items before advertising for rent.

 

3. Understand What is Included in the Rent

 

The rent might cover many essential utilities like:

• Electricity;
• Gas;
• Internet;
• Sewer;
• Trash; and
• Water.

Yet, most states only require the bare essentials paid by your rent like sewer, trash, and water. The others on the list above are in the unit but you must pay for them.

Verify what utilities are paid for with your rent. Also, for the ones you must pay ask your landlord for the name of the utility provider and contact information.

Know if your landlord pays for maintenance and repairs. Often, they do, but when you or your guests cause damages, the lease may require you to pay.

Beware of hidden costs like a parking fee or a coin-operated laundry.

Landlords: Make sure your lease agreement clearly states what’s included with the rent.

 

4. What About Alterations?

 

No rental is perfect. You may wish to make your new home comfortable. Maybe the wall colors are too bright or the curtains don’t block the sun? Can you make alterations?

If alterations and customizing are not in the lease, you must ask your landlord for permission. This includes small things like changing the showerhead or painting the walls in a room. Also, adding a garden in your backyard or changing the landscape requires your landlord’s permission.

Always get permission in writing whether it’s a text or email message with a reply approving it. Save copies of these messages and replies.

Beware: Often what you think is small customization may violate condominium rules or your landlord perceives as property damage. Don’t risk losing your security deposit or early lease termination by failing to consult with your landlord.

Landlords: Make sure your lease agreement states that any alteration requires your pre-approval.

 

5. Understand the Lease Terms

 

Since lease agreements are written by lawyers, they are confusing when using legal language. Because a lease is a contract you must understand everything written in the lease before signing.

This requires you to read the entire lease agreement carefully. It will tell you what to expect of you and your landlord.

Beware: Whatever your landlord explains verbally is not legally binding if it isn’t in the written lease.

Negotiate with your landlord about the terms you want changing. Leases are not a “take it or leave it” contract. Terms other than the rent are open to negotiation. You can negotiate about pet policies, temporary guests, operating an online home business, or the duration of the lease if you want extra time.

Remember, a lease is a contract for occupancy between you and the landlord. It is not a bunch of demands from the landlord for you to “take it or leave it”.

Note: Avoid future problems like planning to own a cat or a dog in six months during a year-long lease with a no pet policy. Or, if you know you will be gone for the summer and want to sublease to pay the rent and guard your home. See if the lease prohibits subletting. Thus, you need to negotiate with your landlord anticipating these situations.

Landlords: Verify that your lease agreement terms are easy to understand.

 

6. What to Expect at the Signing

 

After you are approved to rent an apartment or a house the next step is to sign the lease. What do you need to bring to the signing?

The landlord or property manager will want to verify who you are and the lease agreement may require you to be responsible for certain things. Expect to bring these items:

• Valid photo ID (driver’s license, passport, state photo ID card);
• Car information for the parking space (license plate numbers and registration);
• Proof of renter’s insurance (if required);
• Proof of employment and monthly income (usually for the past 3 pay periods); and
• Letters of reference (if required).

Payment of Fees: When you sign the lease you normally pay the first and last month’s rent, and a security deposit.

Note: Don’t forget to ask about acceptable payment methods before going to the signing. (cash, check, credit or debit card, etc.).

Landlords: Prepare a list of what your tenants must bring to the signing to avoid confusion and delays.

 

6 Things You (And Your Landlord) Need To Know Before Signing Rental Lease – Conclusion

 

Now that you learned 6 things you (and your landlord) need to know before signing rental lease let’s sum it up for tenants:

1. See if you can afford the rent;
2. Inspect the entire property for damages;
3. Understanding what the rent includes;
4. Can you make alterations after moving in?;
5. Understand the lease terms; and
6. What to expect at the signing of the lease.

 

Landlords need to prepare for the same 6 things to make it easier for tenants like:

1. Don’t waste time with tenants who can’t pay the rent;
2. Inspect the entire property for damages and fix them before advertising for rent;
3. Landlords need leases clarifying what’s included;
4. Your lease must specify what if any minor alterations to allow;
5. Make sure your lease terms are understood by tenants; and
6. Prepare a list of what tenants should bring to the lease signing.

 

Landlords – Need Help With Your Lease Terms?

 

WeLease, as a professional property management company in San Diego, can help you with written lease agreements your tenants will understand.

Contact us for all your property management needs in San Diego County.

 

Looking for a Rental in San Diego?

 

Did you know that San Diego Ranked #2 Most Desirable to Rent City in the U.S.

If you are thinking about moving to a year-round sunny climate with beautiful beaches and many job opportunities, San Diego is perfect. In addition, San Diego is:

• Ranked #1 most fun place to live in the U.S.;
• Among Best Places to Retire in 2021; and
• Ranked Among World’s 25 ‘Most Beautiful’ Cities to Visit.

WeLease Property Management Company helps tenants throughout San Diego County.

We help tenants in several ways: 

• Displaying our Available Properties throughout San Diego County;
• Offering 3 Options to Pay Rent (cash, check, or online);
• Transparent Minimum Tenant Qualifications making it easier for potential tenants;
• 2.5 (instead of 3) times monthly rent income to qualify; and
• Clear Maintenance Requests process by our tenants.

Contact us so we can help you find the ideal apartment or home to rent in San Diego County.

 

Steven Rich, MBA – Guest Blogger

 

HAVE ANY QUESTIONS?

Let us know, we’d love to help:

Call: (619) 787 – 4066

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WeLease Property Management Company