Apartment Leases: The Terminology Explained

By Miranda Darling

Your apartment search is complete and you’ve found the perfect pad! Now it’s time to sift through the lease. A lease or rental agreement is a legally-binding agreement. It is vital that you know what you’re getting into since you asked the right questions. Signing your first apartment lease can be nerve-wracking. Making sure you are familiar with the terms can take the pressure off.

What does it mean to be a cosigner/guarantor on a rental lease agreement?

In order to rent an apartment, you will need proof of income and a solid credit history. Many college students are not ideal rental candidates, as they do not fit these criteria. A solution is to have their parents to cosign or guarantee the lease. A cosigner/guarantor is a person who will accept responsibility for the rent, should you fail to pay it.

Beware: one downside to having your parents cosign is that if they are looking to get a mortgage, any cosigned debts will be counted as personal debt. As a result, they likely would not be able to take out as large of a mortgage as they’d hoped.

If your parents cannot cosign an apartment, then you will need to find someone who is comfortable with your situation and who will let you sublet from them.

What does it mean to sublet an apartment?

Subletting is a process where a tenant enters into a rental contract with another individual for property he himself leases. This means that if you are going to be away from your apartment for the summer for example, you can find someone to rent it out while you are gone. You are still responsible for the rent payment if the sublessor fails to pay.

You must let your landlord know you are planning to sublet, usually at least 30 days in advance. The landlord typically does not care as long as the rent is paid; however, some landlords do not allow subleasing. It is illegal to sublet without your landlord’s knowledge. Check the sublet policy in your lease, if there is one.

What is a “per bed” lease?

Sometimes landlords will offer leases for a specific space or room in the apartment. The tenants rent the bedrooms individually, but share the common areas of the apartment. You are only responsible for your portion of the rent. If the lease is for the entire unit and you have roommates, you are most likely responsible for the entire portion. You will want to read your lease carefully and ask questions to make sure.

What is renter’s insurance? Do I need it?

Landlords have insurance which covers their property; however, this does not cover the tenant’s belongings. In the event of theft, fire, flood, or any scenario that would cause damage to a tenant’s belongings, renters insurance is a way for the tenant to protect their personal property.

If you have valuables, renter’s insurance can give you peace of mind. Renters insurance is usually inexpensive. It can be purchased through home and car insurance companies. Check your lease, as some landlords require tenants to have renter’s insurance.

What is joint and several liability?

In an apartment lease, it will indicate that the tenant(s) are jointly liable for any charges, unpaid rent, or damage to the apartment. This means that if the apartment sustains any damage or a tenant fails to pay rent, a landlord may sue the tenants individually or collectively to regain losses. If your roommate fails to pay, the landlord may come after you for the rent money.

These are just some of the most common terms you are likely to encounter when you peruse your apartment lease. Remember, you are entitled to take your time as you read the lease. Do not let anyone in the rental office rush you. Also, ask questions! It is a huge red flag if they fail to answer any of your questions. Ask for any promised changes to be put in writing on the lease before you sign.

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