Renting an Apartment

While it does not offer any investment potential, renting an apartment may be the wisest financial choice for many people. Some may be saving for a down payment on a home, others may be unable to afford buying a home. For families or individuals who move often or for those not interested in the maintenance and repair of a home, renting can offer freedom to relocate and some relief from the costs of home ownership. No matter why an individual is renting, it is a great idea to know about the financial and legal aspects.

Tenancy Agreements
A tenancy agreement is a binding legal document that lays out the conditions and responsibilities of a rental contract, both for the owner and the tenant. Some of the terms commonly found in a tenancy agreement would include: rental price, payment due date, lease term and the consequences of breaching the agreement. A tenancy agreement generally also outlines whether the tenant or landlord will pay charges such as rates and building service fees, whether pets are allowed and any other restrictions and requirements the landlord wants to include.

Read your tenancy agreement very carefully before you sign it. You will be held accountable for knowing everything included in the document. Also, keep a copy of it for your records. It may come in handy if you have a question about what you are or are not allowed to do.

Breaking a Tenancy Agreement
You should avoid breaking a tenancy agreement by moving out before the end of the agreed term if at all possible. Each agreement has its own penalties for breaking the terms - some only require the payment of a penalty but others require the tenant to continue paying rent until the apartment is re-rented. For this reason, it is critical to check your tenancy agreement and make sure you can handle the financial ramifications should you break it.

Source: Estate Agents Authority