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