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What to check before you sign a lease

Many tenants sign a lease at the agent's desk in five minutes. They find out later that they agreed to pay for all repairs, to a fee for ending early, or to a rent increase they did not expect. Half an hour of reading prevents most surprises.

This article explains the law in general terms, as it stood when the book was written. It is not legal advice on your own lease.

Get it in writing

A lease for a home may be written or verbal, and a verbal lease is still binding. But a written lease is far easier to prove. The landlord must put the lease in writing if you ask.

If you rent on a verbal agreement, ask for a written lease politely and in writing. Until you have one, keep proof: payment records, messages that confirm the rent and deposit, and photos of the home's condition.

What a lease should say

Check that the lease sets out:

• the names of the landlord and the tenants, and the addresses for formal notices;
• the address of the home, and any parking, storeroom or garden included;
• the rent, the due date, how to pay, and any yearly increase;
• the deposit amount, and that it is kept in an interest-bearing account;
• the period of the lease, or the notice period;
• other charges, such as water, electricity and levies;
• who does which repairs;
• the house rules, and the rules on pets, guests and subletting.

The incoming inspection list should be attached.

Fixed term or month to month

A fixed-term lease runs for a set period, often a year. A month-to-month lease continues until either side gives at least a month's written notice. If you stay on after a fixed term with the landlord's agreement, the lease continues month to month.

Ending a fixed-term lease early

Where the Consumer Protection Act applies, a tenant may cancel a fixed-term lease on 20 business days' written notice. You pay a reasonable cancellation penalty and any amounts you owe. Offering to help find a replacement tenant can reduce the cost.

Clauses that do not stand against the law

A lease cannot remove your legal rights. Clauses like these do not stand:

• the landlord may enter at any time;
• the deposit earns no interest;
• the landlord may lock you out or cut off services;
• the tenant must pay for all repairs;
• you may not go to the Rental Housing Tribunal.

How to read and sign

1. Take the lease home and read every page.
2. Check the details: names, address, rent, deposit and dates.
3. Ask about anything you do not understand, and negotiate in writing.
4. Initial every page and make sure the annexures are attached.
5. Keep a signed copy.

This article is based on Chapter 4 of Renting Your First Home, which goes through a lease clause by clause.