Signing a Lease
Personal finances isn’t only about how much money you have in your checking account and how much credit card debt you have. One of the most important aspects of successfully managing your personal finances is making the right decisions when obligating yourself to future financial obligations. You should never take on a new financial obligation lightly, without considering the full impact it will potentially have on your finances today and in the future.
Signing a lease for a place to live is a great example of a financial obligation that many people take far too lightly. Too often, people signing leases don’t bother to take the time to read the document thoroughly and they wind up realizing that there will be problems after it’s too late to change anything.
Here are some things to consider before signing a lease for a place to live:
Are the terms favorable? Read through the entire document before signing it. Even if the lease contract seems to be full of standard wording and you have signed several leases in your life, you should still take the time to read it all the way through because you never know what the leasing agent might throw in there that the agent really doesn’t want you to notice. It doesn’t matter if the leasing agent is glaring at you while you take the time to read; you still need to understand what you’re signing.
Can you afford the monthly lease payment now and in the future? You shouldn’t lease a home or apartment that is going to stretch your finances thin. You also need to keep in mind the potential for financial issues in the future. If you were to temporarily lose your income for a period of time, how difficult would it be to maintain your lease payments without falling far behind?
How long is the lease for? Never assume that the leasing agent has drawn up a contract that has the six month time period you discussed. Always look specifically for the period of time you want, whether it’s months or years. You should also find out if there is a clause that allows you to break the lease in the event of a life change, such as a baby or a job transfer.
What are the penalties for breaking the lease? It’s safe to assume that the leasing agent will require monetary compensation for a broken lease, but the terms of a broken lease should not be exorbitant. If you don’t agree with the terms of the penalties for breaking the lease, negotiate a different deal before you sign anything. If the leasing agent won’t budge, find a different place to live.
Never, never, never sign a lease based on a promise from the leasing agent that your requested changes will be made. Don’t sign a lease until it’s written in an acceptable way.
