The Importance of Reading Your Lease Agreement

Moving into a new house or apartment brings about a feeling of accomplishment, especially if it has everything you've ever wanted in a living space. Nevertheless, we understand all you want is to settle into your new home and start living your dream life. 
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But here's one mistake you should never make, no matter how quickly you want to move in – signing your lease agreement without reading it. I know this may come as a surprise to many; however, this can make your life at your new home a living hell if you aren't careful. Let's dive into the topic to understand why reading the lease agreement is of utmost importance.

Know the House Rules
Don’t assume every lease contract is the same as the last one. Going through your lease agreement allows you to know the rules the landlord expects you to follow. Think of it as a manual that teaches you how to behave while living in your new place; the last thing you want is to be the tenant constantly bumping heads with others, including your neighbors. Not following the agreement can cost you additional money that you haven't budgeted for. As you create your new monthly budget, you really don't want to additional fees to impact you over the next 12 months.

Typically, most of the rules set by landlords revolve around keeping pets, having guests, throwing parties, and sharing the available outdoor parking space. Most property owners also specify if you're allowed to make renovations in the lease agreement. Know the facts before you paint an accent wall.

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What does your rent cover?
​Read your lease agreement to understand what your rent covers. Ideally, this helps you set realistic a monthly budget; you'll want to check for yard maintenance fees, cable service, pest control treatments, parking fees, laundry fees etc. Once you have established a workable monthly budget, make sure to have some extra bucks to funnel towards building your wealth. Just planning for your monthly bills keeps you in a 12 month cycle of only getting by or being broke. Saving a couple dollars now makes you disciplined, and will contribute to your financial freedom in the upcoming years. 

Bottom Line
The lease agreement is your roadmap to building your rental history, and preparing you for a future of buying property that you own. Always remember that the 12 months of rent you pay today is paying off someone else' mortgage. Your ultimate goal is to BUY your own property  Set yourself up and your future generations of making smart financial decisions. And remember if you don't like the terms stipulated in the  agreement by the landlord, speak to your realtor to get a better understanding or the onsite Property Manager, its important to save yourself several months of misery.