Before You Sign the Lease

Do the Proper Recon.

So, you’ve found that special place that makes your heart go pitter-pat. It’s cute, it’s clean, and you want it. But the landlord tells you things are leasing up quickly, and a lot of people are looking at this place. Oh no! Now your heart is racing. What if it fills up? You have to sign the lease today! Right this minute! SLOW DOWN TIGER!

Take a deep breath.

It’s exciting to sign the lease, and Leasing Agents are very good at turning up the heat to close the deal. I should know. The little scene I described above was my own experience when I discovered my first apartment. Just remember, while it’s important to find a place you love, it’s also important to have done the proper research first. Don’t sign right away with the first place you find, even if it seems perfect. Look around a little. Compare units, space, prices. Leasing Agents will always tell you the units are going fast, and it may be true, but this isn’t the kind of thing that should be an impulse buy. You also want to make sure you’ve done a sufficient background check on the company or landlord in order to avoid the bad ones.

The next section will give you some tips on things to watch out for. Once you’ve looked around, asked the questions you need to ask, talked it over with your roommates, and decided you like what you see, THEN it’s time to make a move.

What to Expect

First thing, you will likely be charged a non-refundable Holding Fee. This is usually a couple hundred dollars, and it guarantees that they will not sell your apartment to anyone else. A lot of times, this fee counts toward your deposit. However, if you decide not to take that apartment after all, you cannot get it back.

The landlord may also require that you have a guarantor, someone who agrees to cover your rent if you’re unable to. The landlord will need to run a credit check on either you or your guarantor. An Application Fee usually goes along with that. Most of the time, this fee is under $50 per person.

Last of all comes the deposit, which you usually put down when signing the lease. The deposit will be held until you move out. Once you leave, the landlord will return your deposit minus any damages you cause beyond normal wear and tear. There are several ways for the landlord to determine how much the deposit will be. A couple common ways are to charge the equivalent to either a month-and-a-half’s worth of rent, or first and last month’s (aka 2 months worth) rent. Keep in mind, the deposit does not count toward your rent in any way. It is not a fee or a payment. It is a way for the landlords to protect themselves, so they don't lose money if a renter does excessive damage to a unit.

Side Note: The tenant almost always has a right to the interest on his or her deposit. If you have a right to the interest, it is not legal for the landlord to withhold that from you, even if there is a clause that states so in the lease. To find out whether you qualify for interest, call the LA Department of Housing.

And last, but not least, before you sign the lease...

READ IT!!

In this age of downloads and software license agreements, we get used to skimming contracts and clicking “I Agree”. When I worked at the housing company, I saw many students come through, skim the lease, and sign it, and I’m here to tell you that that is a BAD IDEA. Even if it takes forever, even if the legal jargon makes you go cross-eyed, read the lease!!! And don’t just read it. Make sure you understand it. This is one document you should not, cannot skim. No matter what the landlord tells you, or what verbal agreements you make, the lease is your contract. It defines what happens should the apartment not be ready on time, what late fees there are, what the rules are. You cannot count on the Leasing Agent or anyone else to tell you. You must read it yourself.