What You Need to Know Before Signing a Lease

Moving into an apartment or home rental for the first time is a big life event. It marks a new level of independence and responsibility. It can also feel overwhelming, especially with all of the things that need to be done.

Although you might be impatient to get into your new home and begin your new life, it is worth taking the time to fully understand the intricacies of the leasing process. Here’s what you need to know before signing your first lease:

Leasing in New York

If you’ve never lived in New York before, some considerations are unique to the Big Apple:

• There are more renters than homeowners in New York City. Almost 70% of housing in New York is rental property.

• NYC rent stabilization is a system designed to regulate the rent and provide protections for tenants in New York City. It limits the amount landlords can increase rent annually and ensures certain rights and conditions for tenants in rent-stabilized apartments. Rent stabilization typically applies to buildings with six or more units constructed before 1974. Not all renters are covered by rent stabilization; certain types of housing, such as public housing, co-ops, condos, and buildings constructed after 1974, may not fall under its regulations. Some apartments may be exempt if they reach a certain rent threshold or if the landlord meets specific criteria set by the city.

• New Yorkers enter fixed-term lease agreements. In other areas, rental agreements might be open-ended month-to-month with a notice term before moving out. In New York, you’ll enter a lease agreement for a fixed term, usually one or two years.

• By New York law, your security deposit cannot be more than the equivalent of one month’s rent.

• You will pay a non-refundable broker fee. New York landlords often use a management company or brokerage to help find and secure tenants. Broker fees are in addition to the upfront first month’s rent and security deposit.

The fee can range from the equivalent of one month’s rent to 15% of your yearly lease agreement. NOTE: This fee is due upon signing and differs from an application fee. You should not have to pay more than $20 to apply for an apartment.

What is a Rental Lease Agreement?

A rental lease agreement is a legally binding contract between you and your landlord or building management company. This contract outlines the obligations and responsibilities of both parties, such as monthly rent amount and date due, term of the lease, contact information, and building rules.

What is Included in the Lease Agreement?

1. Rent Amount and Payment Terms: This will lay out the monthly rent amount, the day of the month when rent is due, and acceptable payment methods. Ask about late fees and grace periods.

2. Lease Term: The duration of the lease in New York is usually one or two years. Be aware of any penalties and procedures for breaking the lease early.

3. Security Deposit: You will need to pay a security deposit. This can be as much as - but no more than - the equivalent of one month’s rent. The landlord will hold these funds in a separate account for the length of your lease.

When you move out, the security deposit will be returned minus any deductions for damage, unpaid rent, or bills. The lease will state the exact amount of the security deposit required, how it will be handled, and the conditions for its return. By New York law, the security deposit must be returned within 14 days of vacating the premises.

4. Utilities and Maintenance: This clarifies which utilities are included in the rent and which are your responsibility. Understand who is responsible for maintenance and repairs.

5. Pet Policy: If you have pets or plan to get one, review the pet policy. Be aware of any pet restrictions, deposits, or additional fees.

6. Waterbeds and Aquariums: If you have or plan to own a waterbed or aquarium, check for water-filled furniture restrictions. Older buildings, in particular, may prohibit these items due to weight.

7. Air Conditioning Units: Although heating and hot water are considered essentials in NYC, landlords are not required to provide Air Conditioning for cooling. Check if your apartment will include air conditioning, or if there are restrictions around installing air conditioning.

8. Subleasing and Roommates: If you anticipate subleasing the property or having roommates, ensure the lease allows for this and understand the process.

9. Renewal Terms: Know when and how to renew the lease if you wish to stay longer.

10. Renewal or Termination: Procedures if either party needs to terminate the lease before the end of the lease term.

11. Contact Information: The lease must provide contact information for your landlord or building management. Check if there is an after-hours or emergency contact and if there is a specified method of communication. Also, make sure that the full address of your rental is included in the lease.

12. Access to Outdoor Space: Your lease agreement may provide information about access or restrictions around outdoor areas, common areas, and rooftop access.

13. Parking: If your unit includes designated parking, ensure the information is included in the lease agreement.

14. Building Rules: This can include things such as noise considerations, activities, smoking rules, and moving in and out days.

15. Supplemental Riders and Disclosures: Supplemental riders in a New York City lease agreement are additional documents attached to the lease that outline disclaimers and disclosures about issues such as bedbugs, lead-based paint, or other environmental hazards. These provisions are typically included in sections of the rider specifically addressing health and safety concerns or disclosures.

What to Look For Before Signing a Lease

• Read Carefully: Take the time to thoroughly read the entire lease agreement before signing. Pay close attention to the terms, clauses, and any additional documents attached.

• Renewal Process: Be sure you fully understand the renewal process, including any additional fees, and if the security deposit may increase with a rent increase.

• Renters Insurance: Check if renters insurance is required. Landlord and building management insurance may not cover leaks or damage if the premises are tenant-occupied.

• Hidden or Additional Fees: Watch out for any hidden fees or charges not explicitly mentioned in the lease agreement.

• Illegal Clauses: Be wary of any clauses that seem unreasonable or potentially illegal. Consult with a legal professional if necessary.

• Inspect the Property: Before signing any lease agreements, thoroughly inspect the property for damages or issues. Take note of things like leaky faucets, peeling paint, malfunctioning appliances, etc., and ensure they are addressed before you move in. Take photos for when you move out so you’ll know what condition the property was in and avoid being held responsible later.

• Don’t rush: Don’t be intimidated into signing because all leases are standard. Take the time to read and review and make sure to ask for clarification

What to bring when signing the lease:

• Drivers license
• Cashier check for the first month and security deposit

Planning Your Move-In

• Timeline: Create a timeline for moving day, including packing, hiring movers, and cleaning your current residence.
• Utilities Transfer: Arrange for utilities to be transferred to your name at the new property and disconnect them at your current residence.
• Change of Address: Update your address with relevant parties, including banks, subscriptions, and the postal service.
• Inventory Checklist: Prepare an inventory checklist for your belongings to ensure everything is accounted for during the move.
• Keys and Access: Coordinate with the landlord for key pickup and access to the new property on moving day.

Conclusion

By understanding rental agreements, being vigilant about potential pitfalls, asking the right questions, and planning ahead for moving day, you can navigate your first lease with confidence. If you're unsure about any aspect of the lease agreement, consider seeking advice from a trusted source or legal professional.

Contact us at (718) 619-4881 for more information and visit our website for all our services.