The 3 Different Types of Apartment Leases

If you’re planning on renting an apartment, then you’re going to need to sign a lease. Before you do it though, it’s helpful to know about the different types of apartment leases, particularly the one that your landlord or management company is asking you to sign. There are a number of major differences between each type, and knowing what they are could be useful for making sure that you know what you’re getting into—and give you some guidance if you’re looking for specific terms.

The type of lease that comes with an apartment may not strike you as being as big of a concern as, say, the monthly rental fee or the number of bedrooms and bathrooms. But depending on what your needs are, you might not want to lock yourself into one type of apartment lease over another, and you could put yourself at risk of financial loss if you don’t accurately navigate what the terms are from the beginning.

With all that in mind, here’s what to know about different types of apartments leases, including what they mean for you and your rental.

The 3 types of apartment leases

The type of lease that you sign can have a big impact on your rental experience. Make sure that you know exactly what type you’re agreeing to before you sign on the dotted line, since you won’t be able to change it later on.

Fixed-term lease

Month-to-month

Sublease agreement

Lease options when renting with a roommate

Not going to be the sole renter at your apartment? If you’re going to have a roommate (or roommates), then there are a couple of extra lease options to consider within the larger types of apartment leases mentioned above.

    • Joint leasing – This is a type of co-tenancy where you and your roommate(s) are equally responsible for abiding by the terms of your lease while inhabiting the unit. It also means that if one roommate fails to do so, it’s on the other roommate or roommates to pick up the slack, which may include paying their portion of the rent if they flake out.
    • Individual leasing – Sometimes called by-the-bedroom leasing, this type of apartment lease makes each roommate responsible for their own space and the terms associated with it. There are some benefits to going this route, particularly the fact that you can’t be held liable for the actions of another roommate.

    The type of roommate lease you sign will be largely dependent on what your landlord or property management company allows. Joint leasing is usually the most popular type of roommate lease agreement, particularly in situations where there are only two or three roommates total. Larger units, college rentals, and other scenarios however may allow for individual leasing.

    Apartment lease FAQs

    Have a general question about the various types of apartment leases? Here’s a quick guide to some of the basics.

    Can you negotiate a lease before signing it?

    Yes. All terms of a lease are negotiable prior to signing, though your landlord is under no obligation to agree. Some things that you may want to negotiate (aside from your rent cost) are the length of the lease and what the penalties are if you need to move out early.

    What makes a lease invalid?

    Regardless of the terms within it, a lease is considered to be automatically invalid if it contains any provisions that are against the law in your city, county, or state.

    What are the penalties for breaking a lease early?

    That depends on what’s stated within your lease agreement itself. Some landlords may charge a penalty (such as one month’s rent), while others may require that you pay rent for all of the months you agreed to, even if you’re not actually going to be living in the unit.

    What are some other potential consequences of breaking a lease?

    In addition to facing some hefty fees, there are other potential consequences that you should be aware of when it comes to breaking a lease. These include legal consequences, deductions to your credit score, and difficulties renting another apartment in the future.

    Can you back out after signing a lease?

    Not without risk of penalty. Even if you haven’t actually moved in to the apartment yet, a lease is legally binding as soon as you’ve signed it.

    Can a landlord cancel a lease before you move in?

    Not if it’s already been signed. The lease is binding on both tenant and landlord, and both parties are subject to its legal requirements.

    Do month-to-month leases cost more?

    Sometimes. It’s possible that you’ll end up paying more per month under a periodic lease agreement, since your landlord is compensating for the added convenience and for the fact that they may find themselves needing to seek out a new tenant for the apartment sooner rather than later.

    Can a month-to-month lease be terminated without cause?

    Yes, a month-to-month lease can be terminated at any time. That being said, proper notice is still required by the party who is terminating the lease, which, depending on the terms, may dictate that 15-, 30-, or 60-days written acknowledgment is provided, or longer.

    When should you not renew a lease?

    That’s totally up to you. Some things to consider however are whether you like the unit and the location, how well you get along with your landlord, how well the rental cost fits into your budget, and if it’s worth the hassle of moving. Regardless of the type of apartment lease that you have, these are all things that should be taken into account when deciding if you should stay or go at the end of the original term.

    With all types of apartment leases, make sure that you read the terms carefully before signing, and don’t be afraid to negotiate—you’re your own best advocate when it comes to getting what you want (and need) out of a lease agreement.