It is easy to get tripped up when it comes to a rental contract because the contract itself is normally an enormous document that might not make sense to someone that has not studied law or real estate. A rental contract is a formal or law abiding document that shows an agreement between two parties, the lessor and the lessee which defines the particular dwelling, the state it is in and for how long and for how much the lessee will be occupying said dwelling for. It is the lessee’s responsibility to check and double check the document to make sure they have a correct understanding of the contract so that there are no misgivings after the agreement is signed.

The rental contract may disclose a required bond, usually 2 weeks rent plus two weeks in advance to secure the property. The contract may also include the costs of utilities such as water, power, gas or cable to be paid by the lessee each month. Some contracts have utilities built into the price though this can be a disadvantage to people who live cheaply because the utilities are designated at an average cost per month, not the cost that the person may interpret. This means that if a single person moves in to a house or flat and does not use a lot of water or electricity then the contract will not work in their favor. Though if a family move into a house or apartment that is a snug fit and uses great quantities of utilities then the contract may be worth their while and save them money on further costs.

Often the rental agent will require holding inspections usually every 3 to 6 months. They may not appear at any time unless specified and agreed with the tenant which is specified in most rental contract policies. The agent must first ask to house the inspection before it takes place to give the tenant time to prepare for the inspection. A lump sum rental contract is the payment of the lease completely in advance. This also has its pros and cons such as once the money is paid there is often no going back on the rental agreement. However if you are in a position to pay in advance then you will not have to pay weekly, fortnightly or monthly which could save you money in the long run. Often a lump sum rental contract can be cheaper than paying in set amounts.