A lease outlines the responsibilities and obligations of both the owner and tenants of a particular apartment or house. It details the rules by which landlords and tenants agree to live. Once signed, a lease governs what landlords and tenants can and cannot do. Should you become involved in a legal proceeding, courts will generally hold you to everything you've signed. Leases, therefore, are documents of extreme importance.

Leases are legally binding. If you and your roommates sign a lease, then you and your roommates are bound to the terms of the agreement. Moreover, you and your roommates are jointly responsible in most cases. So if your lease states that the rent is $1,000 a month, then (unless your lease states otherwise) you and your roommates are collectively responsible for the entire sum. If one person does not contribute her or his share, then all tenants on the lease are equally responsible for the missing amount.  A landlord is similarly bound to the terms of the lease. Once a lease is signed, no one can be forced to accept additional provisions while the lease is in effect.  Always remember read your lease carefully and do not sign a lease with blank spaces.

In New Jersey, landlords are not required to give a copy of the lease to their tenants, even if one is signed. However, we strongly recommend that you obtain one for your records. If the landlord seems reluctant to provide you with a copy or promises that one will be delivered to you in the near future, you may want to withhold your signature until you actually receive your copy.

Written leases are not required. It is up to the parties to decide whether anything will be signed or not. In cases where there is no written agreement, the lease can be enforceable as an oral contract. Realize that verbal leases, by their very nature, are difficult to substantiate should they become the subject of legal action involving disputed facts. It is usually in the best interest of tenants and landlords to have a written lease. If you never signed a lease with your landlord, do not worry. If you have been paying rent and the landlord has accepted it, then you are a tenant and are entitled to all the rights accorded tenants under state law. In such cases, you do in fact have an oral agreement.

:: Late Charges 

Many leases provide for the payment of late charges if the rent is not paid by a certain day each month. This charge is supposed to cover the money lost by the landlord as a result of the late payment. Courts will usually enforce late charges if the charges are reasonable and are spelled out in writing in the lease.  If your monthly income regularly does not arrive by a certain day, both tenant and landlord should pick a day that is fair to both parties.

:: Renewing or Terminating Your Lease 

Many yearly leases, if written, will have a section explaining how you can renew the lease. A yearly lease that is not resigned automatically becomes a month-to-month lease when the written lease expires - unless you have moved out.

Leases may contain clauses detailing the conditions under which the lease can be ended prematurely. Sometimes a landlord may require only 30 or 60 days notice that you are renewing or vacating your apartment. If this is the case, it will say so in your lease. Otherwise, you are bound to the conditions of the agreement for the entire period set forth in the lease. If you signed a 12-month lease, then you and your roommates are responsible for, among other things, 12 months' worth of rent.

Very rarely can a lease be prematurely terminated. If problems occur after you sign a lease, you must correct them as a tenant of the dwelling. Roach infestation, for example, is not necessarily sufficient reason for breaking a lease. There are a number of things you can do to correct problems with your new apartment, but disregarding your written and verbal agreements is not one of them.

Likewise, a landlord cannot end a lease ahead of time except under well-defined circumstances. For more information on this, please see our eviction information section.

:: Additional Clauses 

Leases may also contain information such as the bank where your security deposit will be held, who is responsible for each utility (water, heat, hot water, cooking gas, oil), when rent is due, what penalties accrue for the late payment of rent, and whether pets are allowed. The main requirements in New Jersey are that:

• no provision of the lease may violate state law, local ordinances, or other government regulations.
• all terms of the lease must be written in easily understandable, plain language.

It is extremely important that you make every effort to uncover problems with a prospective rental before you sign the lease. In addition to visiting units, ask the current tenants about problems they have had with either the structure or about any housing code violations at particular address. 

Some clauses in leases are there at the discretion of the landlord. You may come across such items as these:

• No subletting or assigning of the lease is permitted (or not without written consent by the landlord.
• No pets allowed.
• Tenants must provide the landlord with copies of the keys.
• Tenants are required to obtain rental insurance.

However, some clauses in a lease may be illegal, for example:

• Your security deposit is non-refundable.
• Tenants may not have cable television installed
• The landlord is not responsible for repair and maintenance of the rental.