Before you hit the real estate market on the search for your next financial district apartments for rent, it’s a good idea to become familiar with the different types of leases you may be able to choose from. If you’re only relocating for a short period of time, a short-term or month-to-month lease may be best. On the other hand, if you’re considering a more permanent change, you’ll probably want to sign a long-term lease agreement.
Let's take a deeper dive into the different types of apartment lease types.
What Is a Lease?
A lease is an agreement between a landlord and their tenant that outlines all of the rental terms and conditions. This includes the minimum lease term, monthly rent amount and payment date, and any services provided during the lease term. Lease terms vary by property and state, so there are no hard and fast rules for what must be included in the lease agreement.
Types of Apartment Leases
The type of lease you sign can influence your rental experience, so make sure that you know exactly what kind of agreement you are entering into before signing.
1. Long-Term Lease
Long-term leases are the most common lease type. It usually guarantees tenancy for a year or more. Long-term leases are great for people who prefer a more long-term residency. The downside of this type of lease agreement is you face significant financial penalties should you have to vacate your apartment before the end of the lease term.
2. Month-to-Month Lease
A month-to-month, or a periodic lease, gives you the flexibility of canceling your lease agreement at any time without penalty as long as you provide adequate notice. The lease agreement will define the period of time that the landlord or property manager considers adequate notice, how it should be communicated, and to whom.
Just as this lease type offers maximum flexibility, the downside is that landlords can increase the rent amount from one month to the next as long as they provide proper notice. So, while the rent may be affordable for one month, it’s possible the landlord will notify her tenants of a 5% increase in 60 or 90 days.
3. Sublease
Subletting allows you to lease your place to someone else even though you signed the primary lease. During this special lease for an apartment, you allow someone to reside in your apartment and take over the rent for a specified time period. However, you, as the primary tenant, would still be responsible for rent payments and any expenses related to maintenance and upkeep.
One thing to note on this type of lease--subletting may not be permitted under the conditions of your lease agreement. To ensure you know whether this is an option, read your lease agreement or talk with your landland.
sublet nyc or subletting is risky since you have no way of knowing whether or not the person you’re subletting to will take care of the apartment or consistently pay the rent on time. The best way to help ensure some security against bad subletters is to draft a separate agreement between you and the subletter outlining their responsibilities.
4. Joint Lease
A joint lease is synonymous with signing a lease agreement with a roommate. The agreement binds both of you to the specified lease terms, and you each will be responsible for the other’s actions as they relate to apartment expenses. This includes making rent payments.
5. Individual Leasing
In this type of lease, you and your roommates each sign a separate lease with your landlord. Each occupant is responsible for paying rent and other expenses in accordance with their individual agreements.
The Bottom Line
All lease terms are negotiable before the lease is signed. But landlords are under no obligation to agree to your lease terms. A lease automatically becomes invalid if any of its provisions are illegal, so review your agreement carefully and consult with a real estate attorney if you have any questions. But, at the end of the day, the type of lease you sign should support your lifestyle, which is a win-win for you and your landlord.
