slice icon Context Slice

Lease Agreement Analysis Framework

Rent & Payment Terms

Monthly Rent

🟢 Clearly stated, consistent with advertised price
🟡 Additional mandatory fees (trash, pest control) on top
🔴 Unclear total monthly obligation, hidden fees

Late Fees

🟢 Grace period of 3-5 days, fee capped at 5% or less
🟡 Short grace period, fee up to 10%
🔴 No grace period, excessive fees (may be unenforceable)

Rent Increases

🟢 Fixed rent for lease term, clear renewal terms
🟡 Annual increase cap or CPI-based formula
🔴 Landlord can increase mid-lease, no cap on increases

Security Deposit

Amount

🟢 One month's rent or less
🟡 1.5-2 months (common in high-cost areas)
🔴 Excessive deposit (check state limits)

State limits vary:

  • California: 2 months unfurnished, 3 months furnished
  • New York: 1 month
  • No limit in some states

Return Terms

🟢 14-21 days, itemized deductions required
🟡 30 days, some deduction discretion
🔴 60+ days, vague deduction language, non-refundable deposit

Deduction Scope

🟢 Only for actual damage beyond normal wear and tear
🟡 Includes cleaning if not returned in move-in condition
🔴 Broad deductions including normal wear, repainting, carpet

Lease Term & Renewal

Auto-Renewal

🟢 Converts to month-to-month at same rent
🟡 Auto-renews for another year unless notified
🔴 Auto-renews with rent increase, short notice window

Notice Requirements

🟢 30 days to not renew, symmetric for both parties
🟡 60 days tenant, 30 days landlord
🔴 90+ days tenant notice, asymmetric

Early Termination

Lease Break Options

🟢 Clear buyout option (1-2 months rent)
🟡 Responsible until re-rented, landlord must mitigate
🔴 Responsible for entire remaining lease, no mitigation required

Subletting

🟢 Permitted with reasonable landlord approval
🟡 Permitted with conditions (matching income, etc.)
🔴 Prohibited entirely

Military/Job Relocation

🟢 Military clause per SCRA, job transfer clause
🟡 Military only, documented circumstances
🔴 No early termination provisions

Maintenance & Repairs

Landlord Responsibilities

🟢 All major systems, prompt response required
🟡 Major systems but vague on response times
🔴 Tenant responsible for significant repairs

Repair Deduction Rights

🟢 State-mandated repair and deduct provisions
🟡 Must use landlord's contractors
🔴 No tenant remedies for delayed repairs

Entry Notice

🟢 24-48 hours notice, daytime hours only
🟡 24 hours but flexible on timing
🔴 Landlord can enter with minimal/no notice

Red Flags

  • Waiver of habitability: Cannot waive right to habitable premises
  • Waiver of jury trial: May be unenforceable
  • Confession of judgment: Landlord can get judgment without court
  • Broad liability waiver: Tenant waives all negligence claims
  • Liquidated damages: Automatic damages beyond actual loss
  • No pet provisions: Silent on pets may mean no pets
  • Vague termination for cause: Landlord can terminate for broad reasons

Potentially Unenforceable Clauses

Many common lease clauses are unenforceable depending on location:

  • Late fees exceeding state limits
  • Security deposits exceeding state limits
  • Waiver of implied warranty of habitability
  • Prohibition on lease assignments when tenant has right
  • Acceleration clauses (entire lease due upon breach)
  • Retaliation waiver

Note: Unenforceable doesn't mean it won't appear in the lease. Landlords often include them anyway.

Questions to Ask

  1. "What's the total monthly cost including all mandatory fees?"
  2. "What's your typical response time for maintenance requests?"
  3. "What are the lease break options if my circumstances change?"
  4. "How was the security deposit handled for the last tenant?"
  5. "Is there any flexibility on [specific restrictive clause]?"
  6. "Can you show me the move-in inspection checklist?"