A Checklist on What to Look for in a Lease Agreement

8 Factors to Look for in a Lease Agreement Before Signing

A lease agreement is a legally binding document. Reviewing the terms outlined in a lease agreement is essential to avoid potential disputes. Below are the eight key factors essential for understanding your rights and responsibilities as a tenant.

1. Understand the Full Office Lease Cycle

An office lease term refers to the duration for which you will be residing in the property. It can be fixed, such as a 12-month lease, or periodic, like a month-to-month lease.

• A fixed lease provides security, as it guarantees a place to live for a set period.
• A periodic lease gives you flexibility, allowing you to move out with shorter notice.

When leasing an office space, choose a lease type that fits your needs. Understand the renewal process and the terms for ending the lease early to avoid unexpected costs.

2. Check the Office Rent Details

A good office lease clearly states the rent amount, due date, and policy for late payments. Be sure to look out for clauses regarding rent increases, as some leases permit mid-lease increases with little to no notice.

When reading a lease agreement, ensure to check the following:

• Rent Amount: How much is due each month?
• Due Date: When is rent due each month?
• Late Payment Policy: What are the penalties for late rent payments?
• Rent Increases: Are there any conditions that would allow the landlord to increase the rent during the lease term?

Late fees can add up quickly, so ensure that the payment process, grace period, and any fee escalation rules are clearly outlined in the lease.

3. Assess the Security Deposit Terms

Before handing over a security deposit, check how it will be held and under what conditions it will be returned. Your office lease should clearly outline the deductions that can be made for damage, unpaid rent, or cleaning.

You can check these security deposit terms:

• Holding and Return: The conditions for returning the security deposit and where it will be held, such as an escrow account, should be specified in the lease.
• Deductions: The lease should specify allowable deductions from the security deposit, such as damages, unpaid rent, or cleaning costs.
• Refund Timeline: The lease should specify when you can expect to receive your security deposit back. Check local laws for a maximum timeframe.

4. Who Handles Maintenance & Repairs?

Roles and responsibilities should be clear. Your lease should outline whether the landlord handles repairs or if you're responsible for maintenance, such as lawn care or plumbing issues.

These details should be explicitly included in the written agreement:

• Landlord's Responsibilities: Typically, the landlord is responsible for major repairs, including addressing structural issues, electrical problems, and heating system malfunctions.
• Tenant's Responsibilities: Tenants are responsible for keeping the unit clean, changing light bulbs, and reporting any maintenance issues. They may also be responsible for lawn care or snow removal.
• Emergency Repairs: The lease should specify how to report emergency maintenance issues and the landlord's expected response time.

5. Evaluate the Restrictions and Rules

Lifestyle clauses in a lease can significantly impact your day-to-day life and overall comfort in your rental unit. These clauses often cover restrictions that may not be immediately apparent but can significantly impact your daily life.

To avoid any future inconvenience, you should check with the following:

• Pets: Some office leases may prohibit pets or limit the type and size allowed.
• Noise: Restrictions on noise levels, especially during specific hours, are common.
• Decorating: Please note that limitations may apply to painting, hanging pictures, or making other changes to the unit's appearance.
• Guests: The lease may specify the duration of stay for guests or whether overnight guests are permitted.
• Subletting: Subletting, or renting out part or all of the unit to another person, may be prohibited or require landlord approval.

Before signing, carefully review these clauses and ensure they align with your lifestyle and expectations.

6. Review the Termination and Eviction Policies

Understand what happens if you want to break the lease early—do you lose your deposit or face a fee? Some leases include a “lease break” clause that allows for an early exit with proper notice.

You need to check the following before signing:

• Early Termination: What are the consequences if you need to break the lease early? Will you lose your security deposit or have to pay a fee?
• Lease Break Clause: Some leases have a clause that allows you to exit the lease early under specific conditions and with sufficient notice.
• Eviction: Find out what actions or behaviours could result in eviction. Non-payment of rent is a common example, but repeated rule violations or excessive complaints can also lead to eviction.

7. Look for Additional Fees and Hidden Costs

Beyond the monthly rent, a lease agreement can contain various hidden fees that can significantly impact your budget. These fees can quickly accumulate and lead to unexpected financial burdens if not properly understood.

Don’t forget to check:

• Additional Costs Beyond Rent: Be aware of potential expenses such as utilities, maintenance fees, garbage disposal, and key replacement.
• Clarify Optional vs. Mandatory Fees: Request a comprehensive breakdown of all potential fees to distinguish between those that are optional and those that are mandatory.

By proactively identifying and understanding these potential costs, you can avoid unpleasant surprises and make informed decisions about your lease agreement.

8. Clarify Legal Clauses and Dispute Resolution

Clarity in your lease agreement is key to your protection. A well-written lease should outline the process for handling legal disputes, whether it's through court, arbitration, or mediation. This can save you a significant amount of time and money in the long run.

Here are some important points to remember:

• Dispute Resolution: The lease should specify the method for resolving legal disputes between the landlord and tenant.
• Jurisdiction: The lease should state which jurisdiction's laws will govern the agreement.

Remember, these seemingly minor details can have a major impact on your rights and responsibilities as a tenant. Ensure you select a lease agreement that includes these provisions to protect yourself in the event of a legal dispute.

Bonus Tips for Smarter Leasing Decisions

• Always read every clause, even the fine print.
• Keep a digital and paper copy of your lease.
• Don’t hesitate to ask questions or request changes.
• Confirm that the person signing the lease with you has legal authority.

These small steps can save you from big headaches later.

Red Flags to Watch Out For

• Vague or missing clauses.
• Unreasonably high penalties for minor issues.
• Terms are heavily skewed in favour of the landlord.
• Verbal agreements that aren’t included in writing.

Ready to Lease Smarter with Confidence?

Finding the perfect space is only half the journey—making sure the lease supports your success is the other. The right lease agreement is essential whether you're finding your next rental or creating the perfect office space.

At Office Hub, we assist you in going beyond just signing papers. With tailored advice, transparent leasing options, and a commitment to your peace of mind, we ensure your next move is a smart one, legally and financially.

Contact us today and let our flexperts simplify your leasing experience.