What is included in a rental agreement?

Key takeaways

• You can apply to multiple properties to improve your chances, but fees can add up. 
• Lease agreements are legally binding, and understanding the terms, including rent, fees and responsibilities, can help you avoid costly issues later. 
• Pay attention to how responsive the landlord is during the process, negotiate when possible and complete a thorough walk-through. 

The search is over, and you’ve found a few promising options. Should you apply to all of them or focus on just one? And how is a rental application different from a lease agreement?

This stage of the rental process can feel confusing and stressful, especially while waiting for approval. Here’s what to expect from the application process through lease signing.

A rental application is not legally binding. Even if you’re approved, you can still choose not to move forward. Many renters submit multiple applications and decide among the properties that accept them.

Applying to several rentals can improve your chances of approval. However, most applications require a fee, which can add up quickly. If you’re applying with a roommate, each person must submit a separate application.

Submitting multiple applications typically won’t harm your credit. Some landlords run soft credit checks, which do not affect your score. Others use hard inquiries, which may lower your score slightly, usually by about five points. However, FICO’s rate-shopping window groups multiple inquiries within a 30-day period, minimizing the overall impact.

When applying, be prepared to provide:

• Driver’s license 
• Pay stubs 
• References 

Most applications will also request:

• Name and contact information 
• Current and previous addresses 
• Employment and income details 
• Emergency contacts 
• Pet information (if applicable) 
• Vehicle details 
• Background information, including criminal history or bankruptcies 

While some questions may feel intrusive, landlords use this information to verify your ability to pay rent and maintain the property.
This stage is also an opportunity to evaluate the landlord or property manager. Are they responsive, professional and helpful? If not, it may be worth reconsidering. Once you sign a lease, you’ll likely work with them for the next year or longer.

After your application is approved, you’ll move on to the lease agreement. Before signing, read it carefully and then read it again. Make sure you understand every term.

Pay special attention to:

• Rent amount and due date 
• Late payment penalties 
• Lease terms and conditions 

Violating lease terms can lead to eviction, so it’s important to clarify any questions before signing.
Although lease agreements vary, most include:

• Property details: Address and unit number 
• Tenant names: All adults living in the unit 
• Contact information: For tenants and landlord 
• Lease term: Start and end dates 
• Occupancy clause: Who can live in the unit and guest limits 
• Rent and fees: Rent amount, late fees, deposits and other charges 
• Early termination: Penalties for breaking the lease 
• Pet policy: Rules, fees and restrictions 
• Maintenance and utilities: Responsibilities and procedures 
• Tenant and landlord responsibilities: Rules, conduct and access to the property 

Lease length and content can vary widely — from a single page to dozens. Consider having a real estate attorney review the agreement, especially if something seems unclear or unusual.

Leases for rental houses may differ from those used by large property management companies. Individual landlords often create their own agreements, though all leases should clearly outline rent and lease duration.

House rental agreements may also address:

• Conduct rules 
• Parking 
• Outdoor space use 
• Property modifications 
• Garbage removal 
• Maintenance responsibilities 
• Utility payments 
• Guest policies 
• Move-out expectations 

Review all financial terms carefully, including rent, late fees and the security deposit. The lease should also explain the conditions for withholding or returning the deposit.
Most agreements outline how much notice a landlord must provide before entering the property for non-emergency situations, such as repairs or inspections. In many states, this is typically 24 hours.

Also review the terms for lease expiration. Some leases automatically renew, while others end on a specific date. Landlords may require notice of renewal plans several months in advance.

If you’re renting from an individual landlord, you may have room to negotiate. This could include lower pet fees or a reduced security deposit. In return, you may offer a longer lease term or take on responsibilities like yard work.

Before signing, complete a walk-through with the landlord or property manager. Document any existing damage. This helps protect your security deposit when you move out.

A thorough review now can prevent costly surprises later.

This story was updated on May 6.