Understanding your rental-home lease

Signing a lease is a big step — it officially marks the start of living in your new rental home and everything that comes with it.

But before you commit, it's worth slowing down and really understanding what you’re agreeing to. A lease isn’t just paperwork; it lays out the rules of your tenancy and establishes the rights and responsibilities of both tenants and landlords.

It’s important to understand the content of your lease before signing it.

A lease agreement is a legally binding contract between you and your landlord or property manager. It spells out the rules, expectations and responsibilities for both sides, and each detail matters. Every lease varies, so taking the time to understand what’s included in yours can save you from major surprises later.

Heather Steele, partner of Altmiller Melnick Demers Steele & Rosati PLC, in Tysons, Virginia, explained, “The lease language controls regardless of what the [landlord] verbally told you.” In other words, what’s written on the page is what counts.

The lease duration tells you exactly how long your tenancy lasts. While many renters assume they’re signing a standard 12-month lease, that’s not always the case and assumptions can lead to problems.

Steele said renters often discover surprises in this section. “You may believe that’s true, but you may look at the actual lease term and find out that … this says it’s 16 months, 18 months," she said. "The wording is what prevails over any sort of verbal statement.”

Some leases renew automatically, while others require you to actively re-sign. Always being aware which applies to your lease helps you avoid unexpected rent increases or accidental commitments to another year.

Your lease agreement should clearly state the monthly rent amount and the exact due date each month. Make sure you understand how and where to make rent payments, whether that’s through an online portal, mailed check or in-person drop box. You’ll also want to pay close attention to late fees — when they’re applied, how much they are and whether your lease includes a built-in grace period.

Leases typically spell out these timelines and often straightforward terms such as rent being “due on the first," Steele said, and "late by the fifth,” which effectively serves as the grace period.

It’s worth noting that if you want to adjust any terms, “your opportunity to negotiate … is before you sign the lease,” she said.

The security deposit is a refundable amount held by the landlord to cover potential damages or unpaid rent. Make sure you know the exact deposit amount, the conditions for its return and how long the landlord has to return it once your lease ends.

“In Virginia, you can't have a security deposit that's worth more than two months' worth of rent,” Steele said. If you’re not in Virginia, state laws often limit what landlords can legally charge.

Your lease should outline who is responsible for what when it comes to maintenance and repairs. Some leases require tenants to handle certain tasks, while others place the burden on the landlord. Make sure you know the process for reporting issues and how quickly the landlord is expected to respond.

“You need to know what your obligations are under the lease, both what you have to pay for, your monetary obligations and your nonmonetary obligations,” Steele said. This includes repairs, upkeep and tasks like changing HVAC filters or maintaining outdoor areas.

Pro tip: Don’t ignore small items — landlords often deduct for things like “light bulbs, smoke alarms and anything outside" of the property, Rory Nugent, an attorney at The Herndon Law Firm PLLC, in Herdon, Virginia, told Homes.com. Those are things that get routinely overlooked, Nugent said. "A lot of them are pretty ruthless when it comes ... to deducting those charges from the security deposit.”

Every lease handles utilities differently. Some include basics like water or trash while others require tenants to set up all utilities themselves. The lease should also state what amenities you have access to — parking, laundry rooms, a gym, storage units and whether there are fees associated with them.

If you’re thinking about adding a roommate or subleasing your unit, check out your lease first. Many leases require landlord approval and some prohibit subleasing entirely. Adding people to a lease usually requires an amendment.

When adding a roommate, “the lease plus all of the amendments together constitutes the lease document,” Steele said.

Pet policies vary dramatically. Some buildings allow pets with fees or breed restrictions, while others enforce strict no-pet rules. Make sure you understand the rules before bringing an animal into the home.

Pet fees are generally allowed, Steele said. But if you have a service animal, "then legally the landlord is not supposed to charge a pet fee.”

Most leases include building or community rules — everything from quiet hours to parking guidelines to what changes you’re allowed to make in the unit. These rules are just as enforceable as the financial terms.

An early termination clause outlines your options and possible penalties if you need to end your lease early. Some landlords allow early termination for a fee; others don’t include the option at all.

Many leases don’t allow early exits unless you qualify under a legal protection, such as active-duty military or some condition affecting health and safety. "The court can order that your lease is terminated early," Steele said.

If you plan to renew, check how much notice you must give and how your landlord communicates rent increases. Some leases renew automatically unless you opt out.

Sometimes tenants don’t realize they must give early notice to avoid an automatic renewal or that missing the renewal window can also backfire if you want to stay. “Sometimes it's the opposite. Like, they want to stay, but it's like, you didn't give your notice to renew,” Nugent said.

Your lease should state the conditions under which eviction may occur and outline the process. This includes nonpayment of rent and other lease violations.

For example, “in Virginia, you cannot just lock somebody out," Steele said, calling it "a wrongful eviction." A lawful eviction requires notice, court action and sheriff involvement — never a landlord changing the locks themselves.

Don’t skip the fine print. Small clauses can have big consequences — from fees to restrictions to legal liabilities. Read thoroughly and ask questions before signing.

Pro tip: Keep a digital or physical copy handy — it’s your most important reference document.

• Read the entire lease carefully. 
• Take your time. Don’t skim or rush. You’re about to sign a legally binding contract — important details are often buried in the fine print.
• Ask questions about anything unclear. 
• If a clause doesn’t make sense, ask the landlord or property manager to explain it.
• Negotiate terms that don’t work for you. 
• If something feels unfair or doesn’t fit your needs, bring it up before signing. Many terms are negotiable.
• Document all pre-existing damage. 
• Write down any issues and take photos before moving in. This protects you during move-out inspections.
• Keep a copy of the signed lease.
• Store a digital and or physical copy so you can refer back to it anytime.
• Consider legal advice if needed.
• If you’re unsure about parts of the lease, an attorney can help clarify your rights and obligations.
  

More on this topic:

• How to prepare your rental application
• How to rank your 'must-haves' when seeking a rental home
• What to look for when touring a rental home