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Understanding Your Lease Agreement: Key Points To Know
2024-08-22

Understanding Your Lease Agreement: Key Points To Know

So, you’ve been hunting for your next dream home and finally found it! What’s next? Signing a lease agreement. This is essentially the last step before you pay a security deposit and get keys to your new place.

Signing a lease can be quite complex, depending on the landlord’s rules. So, if you’re feeling overwhelmed with the legality of lease agreements, don’t worry. We’ve collected everything you need to know right here:

Understanding the Basics of Rental Lease Agreements

A lease or rental agreement is a binding contract signed between both the landlord and tenant that outlines the rights and obligations of both parties (the landlord and the tenant) regarding the lease agreement. This written lease is used as a contract when a landlord is looking to rent a home, condo unit, townhouse, or apartment.

What Should Be Incorporated Into Your Rental Lease Agreement?

The Lease Term

This refers to the duration of the agreement. It must state the start and end dates of the tenancy. The lease term defines the period for which the tenant has agreed to pay rent. In the same light, the property owner has agreed not to increase the rental amount during that lease term.

The Security Deposit

This is the sum of money a tenant will pay the landlord at the beginning of the rental. This is designed to help cover any unpaid rent or potential damages to the home. Tenants should note that landlords may claim the security deposit for damage, extraordinary cleaning costs, or unpaid rent when the lease expires.

Rental Amount, Fees, and Payment Terms

This is the most vital part of being a tenant, so understanding all rental fees and payment terms is crucial. Your rental amount is the monthly rent amount you pay your landlord each month. Your agreement will state the frequency and date of payments. Watch for penalties or late fees, as these are over and above the rent amount. Also, look out for statements on utilities and renters insurance, as it’s imperative to understand who pays for which utilities.

House Rules and Occupancy Limitations

These rules and limitations are for the tenant once they live in the property. House rules include statements about upholding a peaceful and neat living environment, abiding by quiet hour rules, and/or acknowledging that smoking is prohibited in the house, apartment, or condo unit. Occupancy limits refer to the maximum number of people allowed to reside in the rented property. 

Tip: Watch out for longer-term guest occupancy limitations, as the rules could differ for this scenario.

Pet Policy

There are many instances where renters have pets, and whether they are four-legged furry friends or scaley ones in a tank, it’s important to look out for a pet policy in your lease. Each landlord stipulates its own ruling, but we advise checking if pets are allowed and, if they are, whether there are any restrictions, such as the number of pets, their size, breed, or animal type.  

Repairs and Maintenance

Your lease agreement should outline who is responsible (landlord or tenant) for maintenance and repairs on the property during the lease term. If you’re a renter, take some time to familiarize yourself with the expectations of general maintenance in the property bounds during your lease, e.g., mowing the lawn or shovelling the driveway.

Tip: The maintenance section of the lease agreement might stipulate the length of time a landlord has to address certain critical and non-critical maintenance issues—vital timelines to note.  

Subletting and Assignment

This clause states if the tenant is allowed to sublet the rental property during their lease term. Renters often look for this inclusion as they may want to rent an individual room in a larger unit or sublet while abroad. This is all possible as long as your lease agreement allows it.

Termination and Renewal Options

This refers to what will happen if the landlord chooses to terminate the lease. It also states what steps should be taken for the lease to be renewed.

It is important to define and understand these points with a potential landlord before signing a lease agreement. Globe Property Management expertly rents out Winnipeg apartments and can help you sign a clear-cut lease agreement with ease. 

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