9 Things You Must Know Before Signing Your Lease

Congratulations! You’re signing a lease! Before you sign your name on the line, make sure you know the answer to these 9 basic questions.

Disclaimer: This post is not intended to be used as legal advice.

1. How much do utilities average per month?

For budgeting purposes, it’s a good idea to have an estimate in your head for how much utilities will cost. Also, keep your climate in mind. For example, if you live in southern California, your energy bill might be higher in the spring and summertime if you keep the air conditioning running the whole day, compared to Minnesota during the summertime, when it may not be necessary. On the flip side, heating your apartment in upstate New York during the wintertime might cost more than if you were in Arizona during the wintertime. In addition, if you have roommates, you might want to consider that the energy bill will tend to be higher.

2. Which utility companies do you need to contact to set up electricity and gas?

If you are in charge of setting up your utilities, it is normally outlined in the lease which companies you need to contact to set up light and gas. Some leases also outline which service providers to use for cable, phone, and internet. This is important because you want would want to be able to turn the lights on the night you move in. If you have any questions, landlords are generally a good resource for answering questions and finding preferred providers.

3. Who will be responsible for covering certain utilities?

This should be outlined in your lease, but it is typical for landlords to cover water and garbage/recycle. Some apartments come with the utilities included in the rent price. More often than not, if apartments come with utilities included, this means you’re paying a premium without realizing it. For some renters, it’s easier to not have to worry about paying utilities, and for others, they prefer to be responsible for their usage as a way of potentially saving money on energy that they may not use.

4. Exactly how much will you pay for rent?

This seems super obvious because it is super obvious! You at the very least must know how much you will be expected to pay for rent per month. How much of your income is going to go towards paying rent? When I determined my budget for rent, I told myself that rent would be 30% of my net household income. Ideally, it would be closer to 25%, but I think that 30% was realistic for the apartment that I was looking for. I included renter’s insurance and parking fees in my total rent price when budgeting.

5. How long is the rent grace period?

This is important to know if you’re not able to pay rent on the day that it is due. No one likes late fees, so it might come in handy to know how long your rent grace period is, if it exists at all. Doing so can avoid confusion and anxiety later on, and your future self will thank you.

6. How much notice do you have to give if you want to leave at the end of the term?s

This is something that is ridiculously important because if you intend to move out at the end of your term, it is crucial to give your landlord the proper notice. If you end up hating your neighbors upstairs, want to move to a different city, or even buy a house, you should know ahead of time how much notice you have to give your landlord so you can plan accordingly.

7. How will fees be calculated if you break your lease and move out early?

You may not be thinking about breaking the lease you’re about to sign, but it is still a good idea to be aware of what fees you will pay, and how those fees will be calculated if you end up moving out early.

8. What will happen to your security deposit?

Typically, the security deposit is used to repair anything that was damaged while you were living in the unit (think stains on carpets, dents in walls, etc). It is important to know how to get your security deposit back and what would make you not get it back, this way you can be super prepared and hopefully get it back at the end of your term.

9. How much notice will you be given before the landlord enters your property?

Yes, landlords are able to come into your unit for non-emergencies. Your lease will outline how much notice you will be given. Most landlords give 24-48 hour’s notice for non-emergency entries, but it’s still a good idea to get a better picture by reading what is outlined in your lease.