Getting ready to sign a lease can be overwhelming. You can take some of the edge off if you educate yourself about what to know and understand before you sign on the line. Reasons you should learn real estate terms prior to reading your lease include understanding the length of your lease, understanding your rent, and understanding the terms of your agreement.
Understanding the Length of Your Lease
New Tenants need to understand how the length of their lease is calculated. Knowing when your lease starts and ends is very important in order to understand your charges. Not all leases start on the first day of the month. In those cases, a landlord may prorate your rent, which is usually done by charging you for your number of days of occupancy instead of for the full month. This calculation can be tricky depending on the number of days in the month of the move in. Your lease might also extend out several days at the end to make up for the days in the beginning. The goal is to equal out to an even number of days to make up the full length of the lease. A key thing to read in the area of your lease length is when your lease starts. Sometimes your lease may start even before you plan to occupy the unit.
Understanding Your Rent
In every case I’ve encountered, rent is due on the first of the month. The first month’s rent is sometimes due upfront with a security deposit. Your security deposit cannot be substituted for your rent payment. Be sure to read about late fees. Sometimes late fees are a flat rate, and other times they are equal to a percentage of your rent. Make sure to find out on what day your rent is considered late. Also, ask about any potential late fee waivers. No one plans to be late, but things do happen. You must also know that your rent might just be a percentage of the total bill. Find out what is included in your rent payment. You might have common area expenses or other expenses on a monthly basis. To get to know your real estate terms better check out a site like http://sfofficespaces.com/commercial-real-estate-terms-101-understanding-leases-terminology/.
Understanding the Terms of Your Agreement
Rental agreements can be tricky when it comes to termination. Make sure you understand how you can be released from your lease. There is usually a penalty. Also get clarity on any potential clauses of relocation and renewal. It is important to know what you are getting into every time you sign a lease. Check and see if the landlord allows you sign over your lease to someone if you need to, and also find out what you need to do to get your security deposit returned after the lease expires. Usually, your suite needs to be left in great condition. Find out what is considered normal wear and tear.
New tenants that sign leases can put themselves in impossible situations if they don’t understand real estate terminology. Leasing agents and landlords know what they are talking about regarding new leases, and they have seen a lot of unique situations. Reasons you need to understand real estate terms prior to signing your lease include understanding the length of your lease, your rent, and the terms of your agreement.