How to Read a Lease Agreement: What to Look for Before Signing
The short answer
Most renters skip reading the full lease. Here is what to look for in every section — and the clauses that can cost you the most if you miss them.
How to Read a Lease Agreement
Most renters glance at the key terms (rent, start date, end date) and sign. That is how expensive surprises happen. Here is a systematic approach to reading every lease before you sign.
Start with the Basics
Confirm these are correct before reading anything else:
- [ ] Your full legal name (spelled correctly)
- [ ] Unit address and unit number
- [ ] Lease start and end dates
- [ ] Monthly rent amount
- [ ] Due date (typically the 1st)
- [ ] Security deposit amount
- [ ] List of all tenants on the lease
Errors here — wrong name spelling, wrong unit number, wrong dates — can create legal complications. Get them corrected before signing.
Section: Rent Payment Terms
Look for:
- Late fee: Amount and when it triggers (after how many days grace period)
- Accepted payment methods: Check, ACH, app, money order — and whether cash is accepted
- Rent increase provision: Does the lease allow the landlord to raise rent during the lease term? (Should say no for fixed-term leases, unless there is an escalation clause)
- Returned check fee: What happens if your payment bounces
Section: Security Deposit
Look for:
- Amount: Confirm it matches what you agreed to verbally
- Conditions for return: What condition must the unit be in?
- Timeline: When will it be returned?
- Interest: Does the landlord pay interest (required in some states)?
If the lease says the landlord can keep the deposit for vague reasons ("excessive wear"), push back. The legal standard is damage beyond normal wear and tear.
Section: Maintenance and Repairs
Look for:
- Who is responsible for what? Typically the landlord handles structural issues; you handle minor things (light bulbs, etc.). Know the dividing line.
- How to submit requests: Most leases require written requests. Know the process.
- Appliance responsibility: If a dishwasher breaks, is that landlord or tenant?
- Pest control: Who is responsible? (Should be the landlord unless you caused the infestation.)
Section: Entry and Inspections
Look for:
- Notice period: Should be 24-48 hours. Watch for clauses giving the landlord the right to enter "at any time" or with less notice. These are often unenforceable under state law.
- Inspection frequency: Excessive inspections (monthly) can be harassment.
Section: Lease Termination
Look for:
- Early termination clause: What is the penalty for breaking the lease early? (Often 1-2 months of rent, sometimes full remaining rent)
- Notice to vacate requirements: How many days must you give before moving out?
- Automatic renewal: Does the lease auto-renew if you do not give notice by a specific date? When is that date?
- Month-to-month terms post-lease: What happens if you stay past the end date without renewing?
Section: Prohibited Uses and Guest Policy
Look for:
- Pet policy: Allowed breeds, sizes, number of pets, fees, deposits
- Subletting restrictions: Can you sublet or Airbnb the unit?
- Guest policy: How long can guests stay? Is there a limit?
- Smoking restrictions: Entire building, or unit-specific?
- Home business restrictions: If you work from home, some leases restrict commercial activity
Section: Tenant Responsibilities
Look for:
- What must you maintain? Lawns, gutters, snow removal — confirm what falls on you vs. the landlord
- Required renter insurance: Many leases require it. Know the minimum coverage required.
- Utilities: Which are your responsibility? Confirm before signing.
Red Flag Clauses
Watch for clauses that:
- Waive your right to notice before entry: Often unenforceable but signals a problematic landlord
- Make you responsible for all repairs: Unreasonable and often illegal for structural/habitability issues
- Include excessively broad indemnification: Holding the landlord harmless for their own negligence is problematic
- Limit when you can file complaints: Cannot legally prohibit you from reporting code violations
The Right Approach
Read every page. Ask questions about anything unclear — via email so there is a record. Never sign under pressure to "decide right now." A landlord who will not give you time to read the lease is a red flag.
Ready to sign? A Settl Verified Passport gives you a verified profile that makes landlords confident in you — and more willing to accommodate a careful review process.
Settl Team
Settl Editorial
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