Understanding your rental contract is essential in protecting yourself. You probably don’t know this, but renter’s have rights and if you are planning to rent an apartment or home, it’s best to have a clear picture of what is in store for you. In most cases, you’ll be required to pay a security deposit. This money is held by the landlord as an insurance policy. If all conditions are met, when your lease is over, you’ll receive your deposit back in full.

But here’s the thing. If the landlord finds you have damaged the apartment or home, you may be required to forgo your deposit altogether. Your rental contract is a legally binding contract between you and your landlord. There are responsibilities on both sides. For instance, your landlord is required to maintain the property and keep the entire area in good standing. He or she must repair all defects and take immediate action to ensure the home meets all health and safety ordinances imposed by the Federal Government. Failure to comply can result in lawsuits.

As you go over your rental contract, you’ll see specifications about whether or not you will be allowed to have pets, and smoke inside the home. There will also be a predetermined due date for the monthly rent. Pay close attention to late charges and the procedure that will be followed if you fail to pay. Even if you receive an eviction notice, you still have rights as a tenant. Take some time to read the fine print of your rental contract and protect yourself.

Find out more on home and apartment rental insurance.