When reviewing a property lease, it’s important to understand key terms and their meanings so you know what you agree to. 

Termination Date and Renewal Options

A standard lease agreement typically lasts 12 months, depending on what the tenant and landlord agree on. Tenants must give their landlord anywhere from 30-90 days’ notice before they plan to renew their lease. Without notice, the lease could expire or could transition to a month-to-month rental agreement that renews automatically each month until the landlord or tenant provides the required notice.

Security Deposit

A tenant must pay their landlord at the start of their lease that’s held to cover potential damages. The landlord must release the money within 30-60 days after the tenant vacates the property, if you’ve met all of your obligations. 

Your Rent’s Grace Period

The grace period for rent specifies how many days after the due dates you can pay without a late fee, which varies by state. Failure to pay rent within the grace period will result in a late fee charge, which could be a flat fee or a percentage of monthly rent. 

Renters Insurance

A policy that provides financial protection for renters against losses to their personal belongings from events like theft, fire, and vandalism. Most leases require tenants to have renters’ insurance and even if yours doesn’t, taking out a renters’ insurance policy can be a good idea. 

Pet Policy

If you have a pet, make sure you read through the pet policy. Some landlords may have certain restrictions on the type of animal, breed, or size. However, service animals fall under an exemption in the federal Fair Housing Act, which prohibits landlords from discriminating against a disability.

Guest Policy

Most leases have a set of rules in a rental agreement that govern how long and how often a tenant can have visitors on the property. This helps protect the property and address any potential issues that may arise with tenants or guests.