Considerations Before Signing a Lease Agreement

Discussing Your Lease

After you have determined which rental is best suited for you, go over the lease in details with your prospective landlord. Do not hesitate to express your expectations of the landlord. It is much better to discuss any objectives or changes you may have before you pay a deposit and move in. It is also important to consider such questions as overnight guests, visitors, the use of alcohol, pets, etc., to help eliminate problems and misunderstandings before they occur.

Written Lease

The majority of landlords use a written lease, which give you the greatest security. Obtain a copy and read over each section carefully. At a minimum, a written lease should contain the following:

• Location of the rental property
• Beginning and ending date of the lease
• Amount of rent per month and when each payment is due
• Amount of deposit and the terms under which it may be withheld by the landlord
• Name, address and phone number of the owner, manager or person authorized to receive notices
• Rules of behavior
• Who is responsible for payment of utilities
• Landlord’s rights to inspect, enter or show the premises to future tenants
• Items in need of repair. Get any promised improvements or modifications to be done to the premises inwriting before you sign the lease.

There are many advantages to a written lease. In a written lease, the terms of the agreement cannot be changed for a given period of time (unless agreed upon by both you and your landlord). Perhaps most important, all obligations and expectations are clearly written out. This means items such as your rent cannot be changed during the lease period. The disadvantages of a written lease are the lack of flexibility with the terms of the agreement and the fact that you may be liable for monthly rent during the entire lease period if you move prior to the expiration of the lease. It is important to realize once you sign a lease, you are bounded by its terms which may be enforced against you in court. For example; if you sign a lease from August 15 to May 15 and you break your lease by moving out prior to May 15, you could be sued for breach of contract and required to pay rent for the entire term of the lease, until May15. Make sure you thoroughly read the lease. If you do not approve of the way it reads or do not understand a specific section, discuss it with your landlord and try to get it changed or clarified.

Oral Lease

South Dakota law provides that a lease for over one year must be in writing. A lease for one year or less may be oral. For example, if you orally promise to live in an apartment for “the school year,” such an agreement would be legally binding, enforceable, and valid contract. The disadvantages of an oral lease are the lack of clear, provable agreement. If a dispute arises, there is no concrete proof of the terms of the lease, the rights and duties of the parties, of what the parties agreed to.

Which Type of Lease Is Best?

The best choice is to get everything in writing. If you are talking with a landlord and you ask a question and receive an answer about something that is not in the written lease, have it added or request an addendum from your landlord that information.