What to Look Out for When Signing a Lease
When you move to a new rental apartment in New York Urban center, you may be tempted to skim or non read the lease you're signing. Information technology's all basic boilerplate stuff, isn't information technology? You may be thinking that you can e'er await at information technology later if something comes upward.
Bad idea. Considering when you sign a lease, you lot are entering a legal contract with the landlord who owns the place. What this means is that in return for living in the apartment, you concur to brand monthly payments, take care of it, and follow all of the building's house rules.
Your lease may not be a scintillating document merely you nonetheless need to read it closely. Many landlords still largely rely on standard charter forms (sometimes downloaded from the internet), which are often designed to protect the landlord more than the tenant.
The advice is—don't blitz through the charter signing process. You'll want to make certain the details are accurate likewise equally identify policies on renewals and roommates. And if you take a question, ask the broker or landlord to clarify earlier you sign to avert any confusion in the future. Also, make certain you sympathise your liability for insurance and whether you lot are paying for any utilities.
[Editor'due south note: This article was originally published in Baronial 2020. Nosotros are presenting it again with updated information for June 2021.]
"My communication to clients is showtime and foremost, information technology is a legal document, obligating them to all the terms and conditions in there. Information technology's essential to read that document and take someone with more experience—not necessarily a lawyer, but it could exist parents—look at it too," says Gary Malin, master operating officeholder at The Corcoran Group.
Pro Tip:
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Malin says in that location isn't a lot of negotiating room when it comes to leases. "Some landlords accept done hundreds, thousands of leases, and their lease is their lease, and so either you tin live with those terms or you can't," he says.
Marking Hakim, a real estate attorney with the law firm Schwartz Sladkus Reich Greenberg Atlas, says your leverage when it comes to a lease tin depend on the market.
"In a tight market place that favors the landlord, the renter will be stuck with what the landlord has to offering. In a softening market with high vacancies, renters volition control negotiations ever so slightly," he says.
Regardless of how much leverage you lot have, y'all should at to the lowest degree know what you're signing before you put your signature on the dotted line. Often your lease volition come with additional pages called supplemental riders. These may include requirements that let landlords to audit for lead paint or install window guards in units where there are children 10 and under.
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Another thing to consider: As the city returns to normal, some apartment buildings still accept Covid-related restrictions in place. Hakim says he has seen instances where renters cannot access the apartment immediately, or elevator access was limited and then furniture could not exist moved in. His advice: "If possession is not given inside a reasonable time or elevators are not available for moving in, you can cancel the lease," he says.
Here are 14 other issues to continue an heart on when reviewing your lease.
1. The essentials
Make sure the hire you agreed to is actually stipulated in the lease, with the starting time date and finish date correctly stated. Double check the address and apartment number. Check the appointment each calendar month the rent is due. Make sure the security eolith amount is correct and keep in listen, landlords can just enquire for ane month'southward hire as a security.
"People are sometimes in a hurry, and mistakes get made," Malin says. You should too review the lease for any intermission clause. Landlords are required to make a reasonable effort to re-hire your flat if you need to go out mid-way through your charter but at that place'due south a risk that y'all'll be on the hook for the rest of the term if another tenant doesn't take your place.
2. Renewal clauses and renewal policies
If your charter has an option to renew for ane or more years, check to see if at that place is an escalation clause, which would raise the rent in subsequent years and is typically based on a fixed dollar corporeality, a pct of the get-go yr's rent, or cost of living increases.
"You spent time, money, and energy getting this apartment, and that commencement yr goes past very quickly," Hakim says. If you already know yous want to spend more than a twelvemonth there, try to negotiate now and set the hire increment for the second or third twelvemonth and then you know it volition be a reasonable rate, and yous are less exposed to a bigger hike, he advises.
Hakim points out that if y'all've lived in your apartment for one yr, your landlord must give yous at least 30 days' detect if they programme to raise the rent by 5 percent or more, or if they will not renew your lease.
Review the renewal terms carefully. If it states you need to requite a renewal 90 days in advance by certified postal service, merely calling the landlord'southward office and telling them you lot want to renew won't cut information technology.
"Instead of the agreed upon 3 percent increase, he may now come dorsum with an 8 percent increase, saying yous didn't requite proper certified mail discover," Hakim says. The aforementioned applies for termination, or opt-out provisions.
Also, if you landed a rent-stabilized flat (Congrats!), you're entitled to a lease renewal every year, except in a few circumstances, like if yous're breaking the rules of your charter. And, your landlord tin but increment your rent by a small pct, based on the Rent Guidelines Board.
three. Security deposits
Make sure the security deposit corporeality is detailed correctly on the charter. The security deposit is now capped at i calendar month's rent so you cannot exist asked to pay additional rent in advance.
If you request an inspection of the apartment to certificate its condition before you move in, you must be given a walkthrough to observe the status of the unit and whatever existing damage. When y'all move out you lot can exercise the same and the landlord needs to give you an itemized statement of any charges within xiv days, or he or she could be liable for amercement upwards to twice the amount of the deposit. The deposit must also be returned to you, minus whatsoever itemized price for damage, within xiv days of vacating the apartment.
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iv. Utilities
Some landlords—particularly in buildings where apartments aren't separately metered or sub-metered—may include utilities in the monthly rental price. But usually only the water and oestrus are included.
"Ask what is included, and make certain the lease clearly states who is responsible for what," Malin says.
five. Insurance
"The landlord's insurance does non, despite what many people believe, cover the tenant," says apartment insurance broker Jeff Schneider of Gotham Brokerage (a Brick Surreptitious sponsor). "The tenant must insure their ain property against fire, theft, and water impairment, and also must behave their own personal liability coverage, which protects them if they are sued for negligence—starting a burn down that destroys part of the building or, more commonly, letting a tub or sink overflow and dissentious the apartment beneath them."
Information technology's especially important to have insurance if you are renting from a condo or co-op owner, Hakim says. The buildings will oft have rules about insurance coverage, and while the edifice policy or landlord's policy might encompass some things, they probable won't cover everything, like your possessions.
"It is the cheapest piece of protection in your life that can cover the most seemingly benign situations," Hakim says, similar accidentally leaving the sink on, or flushing the toilet and it overflows. "Ask the edifice direction what is required."
half dozen. Pets
Not anybody loves animals, and having a dog or a true cat tin can be a potential obstruction—especially if you plan on getting one after you move in. If this is the case, make certain the lease explicitly acknowledges this and so the landlord won't withhold his or her consent when yous decide to bring home your new best friend.
Once you have the animal, "ensure you comply with pet rules and policies, and that the pet is disclosed," Malin says.
Even if pets are allowed, be certain to find out whether there is a weight or breed restriction to avert any problems. And don't think you lot'll be able to get abroad with bringing in a puppy under the weight limit, then have it exceed the said amount equally it becomes full grown.
"Well-nigh owners will ask the breed, not just the weight, because they know that puppies grow," Malin adds. "The best way to avert friction is to be upfront."
Yet, some landlords take eased their restrictions on large canis familiaris breeds and are more lenient toward pets in general to entice new renters who got a pet during the pandemic. And then, you might take an easier time finding a rental that allows your pooch, just but make sure information technology's outlined in the lease.
In condo and co-op rentals, review the corporate bylaws to ensure what the rules are regarding pets. For more information, read Brick's best communication on having pets in New York City.
And, if you have an emotional-support pet or service dog, y'all are allowed to take a pet regardless of what your lease says. Just be prepared to prove the proper documentation.
7. Air conditioners
Some landlords may restrict the number of A/C units you lot can have—or prohibit them altogether—due to outdated wiring in the building, or safety problems, or considering the edifice is landmarked.
In addition, adds real manor chaser Steve Wagner of Wagner Berkow & Brandt, "Air conditioners tin can create a mucilaginous state of affairs because standard leases typically don't allow yous to hang annihilation out of windows, particularly on college floors. Always ask showtime earlier taking matters into your ain hands."
In older buildings or co-ops, there may be a fee charged, Hakim says.
Even where ACs are allowed,yous may demand to hire someone else to install the units.
eight. Outdoor spaces
"If you're lucky enough to have the use of outdoor space, whether a terrace, garden, or rooftop, brand sure it'due south in your charter," Hakim says, adding that the clause should include where the space is, who has rights to it, is it shared, who is responsible for maintenance, and who is responsible for damages.
If y'all're subletting from an owner whose apartment has a terrace, "be sure y'all're articulate up front most who is responsible for maintaining it while y'all're living there," says Wolfe.
Information technology's of import to have this spelled out in the lease, considering if information technology is not, you might non exist entitled to a hire abatement if the infinite becomes unusable for some reason. Brand sure yous bank check out all of the terms in your charter regarding what you can—and cannot—do on your balcony or terrace.
9. Subletting, roommates, and visitors
Most standard rental leases require landlord approving to sublet, then you will likely need the landlord's consent to sublet, says Wagner. Withal, he notes, a landlord cannot unreasonably withhold consent.
That said, he explains, "if you are going to exit the apartment permanently and want someone to have over your lease, this is chosen an assignment. The landlord can refuse an assignment, but if your request to assign is unreasonably denied, y'all are allowed to abolish the lease. If there is a possibility you will demand to exit earlier your lease is upward, you should discuss this with the landlord ahead of time to determine whether he or she volition want you to become through the formalities or whether yous can merely stop. Y'all may besides be able to piece of work this out with a landlord earlier the lease is signed."
As far as roommates and significant others, "you are allowed to accept at least 1 boosted occupant living with you while yous're there even if the charter is only in your proper noun equally long as you lot notify the landlord," Wagner says.
Know that if you brand any deals with a roommate, such as their agreeing to pay more for a larger bedroom space or to use their security deposit for the last calendar month'southward hire, it's upward to you to get that in writing separately from the charter with your landlord, Hakim says.
You are nonetheless financially liable for the entire rent. "If your subtenant doesn't pay, you lot however need to pay," Malin says.
x. Renovations
If the landlord has agreed in advance to let you brand improvements or alterations to the apartment, make sure you lot go this in writing in the charter. Otherwise, you will be responsible for the cost of returning the apartment to its original condition.
In add-on, "if the landlord promises to have the flat painted by the move-in date, simply it's not washed, you might be able to get a rental credit," Hakim says.
11. Noise mitigation
Some buildings might require tenants to take precautions regarding noise, such equally having a sure amount of the floor covered by carpets. "Expect to see if there are whatsoever obligations," Malin says.
Y'all should also check into the edifice'south tranquillity hours, and if you're allowed to play loud instruments or host large parties, which can crusade a lot of noise for your neighbors.
12. Showing the apartment when the lease is up
It's not uncommon for landlords to include a provision to show your apartment to prospective tenants virtually the stop of the lease. Information technology's the landlord's business organization to keep the space rented, subsequently all. However, the exact terms of the system should be looked at closely.
"Endeavour to limit it to certain days and hours, and make yourself available. If they're showing information technology without you, you might want a third party in that location, like maybe a broker," Hakim says. "What if you lot have a dog and it takes a nip or is defendant of taking a nip?"
Although it is uncommon, damages can occur while the apartment is being shown, and you want the landlord to be responsible for that. "You want to make sure you have aplenty protection," Hakim says.
thirteen. Subletting, maintenance, and assessment fees
This is for people renting from a condo or co-op owner: In addition to monthly maintenance fees, many co-ops charge the possessor a subletting fee. That usually will go added to the rent the shareholder is asking. But if either fee gets increased in the centre of a sublease, or if the edifice adds a monthly cess, you desire to make sure you won't be liable for the extra charges, Hakim says, so make sure that is clearly stated in the lease.
14. Furnished apartments
If the apartment is furnished, the charter should as well contain a list of all furniture that is to be included, as well as a confirmation that all of these items are in place when the lease begins. There are providers who offering furnished apartments for a business organisation, and there'south a different standard charter.
"Near are month to month, and include cleaning services and utilities," Hakim says. Still, review the aforementioned clauses equally y'all would for an unfurnished rental.
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Source: https://www.brickunderground.com/blog/2013/06/renters_beware_11_things_to_look_out_for_in_that_lease
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