Navigating an apartment lease agreement can be challenging as a renter. They’re written in complex legal language, have lengthy pages, and can vary in legally-binding rules by property. Understanding common lease terms is not only necessary to know what you’re responsible for, but also to find the best place to live.
Learn everything about these landlord and tenant contracts, what’s typically included, and how to ensure a smooth living experience.
Apartment Lease Agreement: Key Terms & Clauses to Know As a Renter Before Signing
Below, we’ll break down the most important parts of a lease agreement as an apartment renter and what you should look for before signing.
Lease Term
A lease term is the time period during which you’ll be renting an apartment. Depending on the contract, it’s typically a fixed-term contract from six to 12 months. When reviewing a lease term, there’ll be a beginning and an end date, so you know when to move in and when the contract is set to renew or end
Lease Renewal
A lease renewal is the deadline to renew your apartment lease agreement. You’ll find this as the end date of your lease term. Landlords may have a few clauses for lease renewals, like signing a new agreement or a rent increase after living there one year, so ensure you read these details carefully before renewing.
Lessee and Lessor
A lessee and a lessor are the official names used for apartment lease agreements for tenants and landlords. As a renter, you would be the lessee, and your landlord will be the lessor. That way, you understand these roles as labelled in the contract.
Rent
While the term rent may seem obvious, which is the total monthly amount you pay your landlord to live in their apartment property, there are a few details to look for in their contract. Rent clauses should also include where to send your payments and the acceptable forms of payment.Â
An example of what this language would look like is:
“Rent: Lessee agrees to pay the Lessor a monthly base rent of $1,200. Rent is due and payable in advance on the first day of each calendar month during the lease terms. Payments shall be paid in U.S. Dollars via the online portal at [URL]. Acceptable forms of payment are direct deposit, personal check, and money order.”
Some rent clauses may have a grace period that allows you to pay rent for a short window after the due date. These may or may not include a late payment fee, so ensure you review the terms to avoid potential penalties.
Security Deposit
A security deposit is the additional money you have to put down on an apartment lease agreement. On top of your first month’s rent when moving in, a security deposit is like a financial placeholder that protects the landlord. Depending on the property, it’s often a total of one month’s rent—so you would need two months of rent saved to sign the lease.
While security deposits are fully refundable once you move out, the landlord may keep some or all of it if you severely damage the apartment. These may be due to pet damage, destructive living habits, and tenant neglect to maintain the unit beyond minimal wear and tear.Â
Minor nail holes for hanging art, chipped paint, and loose doorknobs wouldn’t be deductible damage. On the other hand, large wall holes, broken windows, and permanent pet stains are common deductible damage.Â
Reviewing security deposit terms is critical to understand, so you can get your money back, including:Â
•Deposit Limit: The total capped amount of the security deposit required (Ex: one month’s rent)
•Return Timeline: The legal window your landlord is required to refund your security deposit after moving out. These may be 14 days after the move-out date.
•Return Method: The method by which your landlord will refund your security deposit (Ex: First Class Mail, electronic money transfer, etc.)
•Holding of Deposit: The details of where the landlord will hold your security deposit. In most states, landlords must deposit this into a separate interest-bearing account and not into their own personal banking account.Â
•Cleaning Fees: A small, non-refundable percentage of your security deposit that the landlord may keep for cleaning. This clause isn’t always standard.
Co-Signer/Guarantor
A cosigner, also known as a guarantor, is a common clause in apartment lease agreements that helps tenants move into units they may not be able to afford, while financially protecting the landlord. If you have no built credit, a low credit score, or a lower monthly income that doesn’t cover at least 30% of rent, the contract may allow you to have someone else cosign the lease.
Cosigners are typically a family member with stronger financial stability who has both of your names on the contract. However, that doesn’t make them your roommate. It’s simply the added insurance that if you cannot pay your rent, the cosigner is responsible for all payments you miss. Having a cosigner also helps you get approved for your rental application.
Sublease
A sublease is a clause that may allow someone else to live in your apartment temporarily. If you travel for a long-term vacation or move out earlier than your lease term but can’t break the contract due to the agreement terms, the landlord may allow you to sublease the unit.Â
The purpose of a sublease is to help find someone else to live there so you’re not paying for an empty apartment, while meeting the financial obligations to the landlord. However, your name still remains on the lease and makes you financially responsible for the subtenant. If they don’t pay rent or on time, you may be liable for penalties.
Penalties
While penalties may seem scary, it doesn’t always mean you’ll be charged. In most cases of an apartment lease, penalties involve the following:
•Unauthorized pets or breeds
•Late rentÂ
•Subleasing without approval
•Smoking inside
•Moving out before the lease term ends
•Property damage
As long as you review the penalty clauses and are a responsible tenant, you can avoid paying these additional fees.
Right to Entry
The right to entry is crucial to understand as a renter for your living privacy. This term allows landlords to enter your apartment, usually with a 24 or 48-hour notice, except for emergencies, like gas leaks or fires. Landlords can legally enter your apartment with prior notice for routine maintenance, repairs, annual inspections, or to tour the apartment if you’re moving out.
Warrant of Habitability
While you must keep the apartment in good condition, a landlord is responsible for specific maintenance and repairs as the property owner. Known as a warrant of habitability in lease agreements, landlords are legally required to make the unit and on-site public shared spaces safe and sanitary environments for all tenants.
Common examples of essential maintenance and repairs they must provide are:
•Plumbing Leaks: Sinks, showers, toilets, etc.
•Heating and HVAC Issues: Maintaining boilers in the winter and A/C units in the summer
•Fixing Broken Appliances: Refrigerators, laundry, stoves, etc.
•Pest Control: Extermination of insects, bed bugs, rodents, etc.
•Common Area Upkeep: Vacuuming hallways, cleaning staircases, maintaining laundry rooms, etc.
•Security and Safety Systems: Installing and maintaining smoke and carbon monoxide detectors, fixing broken locks, etc.
•Emergency Repairs: Performing emergency repairs immediately, such as mold, burst pipes, roof leaks, and sparking electrical wires
In addition to a warrant of habitability, the lease agreement should also have a clause on how you should submit maintenance and repair requests. They may ask you to use their internal property maintenance online portal or email. Non-emergency repairs also typically have a specific time window for the landlord to address them, like a 72-hour turnaround.
Property Disclosures
Understanding property disclosures is another essential part of protecting yourself as an apartment renter. While this can vary by state, it’s the information a landlord is legally obligated to tell you about the property’s condition history before you sign a lease. Reviewing these disclosures ensures that landlords are being transparent with you about the property’s high-risk conditions.
Utilities Included
Depending on the lease agreement, landlords may include certain utilities built into the cost of rent. The utilities typically covered are sewer, trash, and recycling. The utilities that tenants are usually required to pay for are internet, water, and electricity. We highly recommend asking the landlord about the average utility costs based on a 12-month lease term. That way, you have a better understanding of how much rent you can afford with the separate utilities.
Pet Policy
Have a furry family member you want to live with in an apartment? Always check the lease agreement for their pet policy. Some properties may have pet-friendly policies, but with certain conditions. Landlords may restrict larger dog breeds or specific animals, like cats, to avoid significant in-unit damage. They also usually require an additional pet fee at the time of signing the lease.Â
Many apartment complexes offer pet-friendly amenities, like on-site dog parks, walking paths, and waste cleanup stations, so be sure to review these details to know if it’s the best place for both of you.
Termination
Termination is a term used when a landlord or tenant ends the lease agreement. You may terminate the lease earlier than expected because of a job relocation/loss, or active military duty. A landlord can also terminate the lease if you violate the agreement, such as illegal activity, unauthorized tenants/pets, or unpaid rent.
As mentioned above, there may be early termination clauses, like a fee for breaking the lease early. This clause is common because the landlord will need to find a replacement tenant to cover the rent you would’ve paid.
Eviction
While this only applies to extreme cases, an eviction is when a landlord can legally remove you from an apartment. Similar to termination clauses, eviction is often warranted for consistent late or missed payments of rent, onsite criminal activity, and unauthorized pets/occupants.Â
Landlords must provide you with a written eviction notice and state this within the lease agreement. Depending on the clauses, this may be a 14-day warning to submit the full amount of unpaid rent or face eviction. They may offer a 10-day window to fix the violation, like removing unauthorized pets before they provide an eviction notice.
Apartment Lease Agreement FAQs:
What is an Apartment Lease?
An apartment lease is a legally binding contract between a tenant and landlord that grants you the right to occupy a unit for a specific period of time in exchange for monthly rent.
What is a Term of Lease?
A term of lease is the length of time that the agreement is valid. It determines how long you can rent the apartment for before you’re required to renew the contract or move out.
What is a Lease Length On An Apartment?
The standard lease length of an apartment is 12 months. However, there may be short-term lease lengths, such as apartments near college campuses for students between three and nine months to accommodate their seasonal living needs. There are also month-to-month and extended leases for 24+ months that may be available.
How Does an Apartment Lease Work?
An apartment lease is a legal exchange agreement. You promise to pay rent on time and follow property rules, while the landlord commits to providing you a safe and habitable home.
What Does a Lease Agreement Look Like?
An apartment lease agreement looks like a multi-page legal document. It’s structured with numbered sections, clauses, conditions, and property-specific policies that vary by landlord.
What is the Difference Between a Rental Agreement And a Lease?
The main differences between a rental agreement and a lease are the duration and structure. A rental agreement is short-term, often 30 days, and offers more flexibility to move out with shorter notice. However, rent can increase at the end of the 30-day period, and it automatically renews monthly.
A lease agreement is a fixed-term, with six to 12 months as standard. You can move out earlier, but it commonly has a penalty fee for breaking the lease early. In contrast, it offers more rent stability, as landlords cannot increase this rate during the lease term. You must also sign a new or updated contract for renewals at the end of the lease term.
Sign Your Next Chicagoland Apartment Lease With Confidence
Searching for an apartment to rent in the Chicagoland area? At TLC Management Co., we make the process easy. From flexible lease terms to pet-friendly policies and no required security deposit on all properties, we believe the renting experience shouldn’t be complicated.Â
We’ll even qualify you and your roommates together instead of individually to ensure you all find a place to live within your means.
Ready to find your new Chicagoland apartment home?
Browse over 30 of our city and suburban properties or contact us at info@chicagorentals.com to kick off your search today!
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