Upfront Costs and Lease Addenda
Make Sure Your Lease is Kosher
So you've written a few major checks in the past few weeks. You have been approved for the apartment you want! Congratulations!! But you're not out of the woods yet. Yes, you have been approved. Yes, you've laid down a deposit, which now counts as your first month's rent. But you still have to sign the lease and perhaps pay more money, such as Last Month's Rent, Security Deposit and Finder's Fees.
Most leases are standard forms created by the Rental Housing Association (RHA). Typically you will see a Standard Fixed Term Lease, or a Simplified Fixed Term Lease. Sometimes you will see a Self-Extending Lease.
The difference between a Fixed Term lease and a Self-Extending lease is that a Fixed-Term lease is set to expire on a certain day if you do not respond positively to the renewal notice your landlord sends out. A Self-Extending lease is set to renew if you do not respond to your notice or otherwise inform the landlord that you intend to vacate.
Some landlords use an Addendum, which contains additional clauses not found in the main lease. You should read addenda carefully as they may contain some restrictions. If your landlord has collected a last month's rent, you should have a Rent Receipt form that accompanies the lease. If your landlord has collected a Last Month's Rent and/or Security Deposit, you should have both a Rent and Security Deposit Receipt AND an Apartment Condition Statement accompanying the lease.
The Rent Receipt and Rent and Security Deposit receipt, once countersigned by the landlord, will contain the escrow account information where your money is being held. This is your money and
you are entitled under Massachusetts General Law 186 to know where it is being held at all times. You are also entitled to receive interest on it under certain conditions.
An Apartment Condition Statement is a form document upon which the apartment address and unit number is listed as well as a statement of the condition of the apartment at the start of the tenancy. Usually, you see the standard statement apply: "this apartment is in good condition." You will have 15 days from the time you move in to review the statement and inspect the apartment. If you feel there is pre-existing damages, notify the landlord. Do not sign the condition statement. In a separate letter, list out the damages and reasons you disagree with the Apartment Condition Statement, send the landlord this letter along with the unsigned statement and keep copies for your records.
A landlord may collect no more than the following monies from you prior to your tenancy's start date:
Make Sure Your Lease is Kosher
So you've written a few major checks in the past few weeks. You have been approved for the apartment you want! Congratulations!! But you're not out of the woods yet. Yes, you have been approved. Yes, you've laid down a deposit, which now counts as your first month's rent. But you still have to sign the lease and perhaps pay more money, such as Last Month's Rent, Security Deposit and Finder's Fees.Most leases are standard forms created by the Rental Housing Association (RHA). Typically you will see a Standard Fixed Term Lease, or a Simplified Fixed Term Lease. Sometimes you will see a Self-Extending Lease.
The difference between a Fixed Term lease and a Self-Extending lease is that a Fixed-Term lease is set to expire on a certain day if you do not respond positively to the renewal notice your landlord sends out. A Self-Extending lease is set to renew if you do not respond to your notice or otherwise inform the landlord that you intend to vacate.
Some landlords use an Addendum, which contains additional clauses not found in the main lease. You should read addenda carefully as they may contain some restrictions. If your landlord has collected a last month's rent, you should have a Rent Receipt form that accompanies the lease. If your landlord has collected a Last Month's Rent and/or Security Deposit, you should have both a Rent and Security Deposit Receipt AND an Apartment Condition Statement accompanying the lease.
you are entitled under Massachusetts General Law 186 to know where it is being held at all times. You are also entitled to receive interest on it under certain conditions.
An Apartment Condition Statement is a form document upon which the apartment address and unit number is listed as well as a statement of the condition of the apartment at the start of the tenancy. Usually, you see the standard statement apply: "this apartment is in good condition." You will have 15 days from the time you move in to review the statement and inspect the apartment. If you feel there is pre-existing damages, notify the landlord. Do not sign the condition statement. In a separate letter, list out the damages and reasons you disagree with the Apartment Condition Statement, send the landlord this letter along with the unsigned statement and keep copies for your records.
A landlord may collect no more than the following monies from you prior to your tenancy's start date:
- First Month's Rent
- Last month's Rent
- Security Deposit of One Month's Rent
- Key and Lock Change Fee or Deposit
This article is From the How To Find An Apartment In Boston series.
Other Articles:
Size, Location, Price - The Three Principle Factors That Will Govern Your Apartment Search
Do it Yourself or Get a Real Estate Agent? - Where to Start Looking for Apartment
Super Agent Man or Super Waste of Your Time? - How to Tell if the RE Agent is Worth the Cost of a Phone Call
Real Estate Agent Fees Explained - An Explanation of No Fee, Half Fee and Full Fee Apartment
Looking for an Apartment With Roommates? - Get Your Ducks In a Row
Cats and Dogs and Snakes - Pet Friendly Apartment Searching
What to Do with Your Car - Off Street vs. On Street Parking in Boston
Boston Rental Market Timing - Know when to Start Looking
Preparing for an Appointment - What You Need on the Day of Showing
Upfront Costs and Lease Addenda - Make Sure Your Lease is Kosher
So there you have it, Ishmael, a complete guide to navigating these trouble waters. I hope it helps you on your journey.
Regards,
Robert Daniel Ortiz
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