7 Red Flags to Avoid Before You Sign a Lease

Few things can crush your spirit more than getting scammed or tricked during your search for a new rental home. Moving under a deadline can leave you open to being preyed on or rushed into signing a lease for a place that might later turn out to be unsuitable, or even hazardous. It happens often enough, though, that we’re writing this article to help you recognize red flags and avoid the kinds of situations that can hurt your wallet, put your personal information at risk or land you in a place you’d rather not be.

Signing a lease commits you for a good chunk of time and money. Before signing, it’s smart to make a final check for red flags like these.

1. Below-market rent

If the monthly rent for an apartment or single family home in your area averages $2,000, be wary if the place you’ve found costs half that. This is especially true if you’re conducting a long-distance search and haven’t seen the home in person. While it would be nice to save a lot of money on rent, you don’t want to be snared by a scam.

2. Exceptionally large deposits upfront

Moving into a new rental usually requires a deposit upfront. Exceptionally large security deposits that far exceed the rental amount can be a sign of a predatory lease, putting you at risk of a financial loss if the amount isn’t returned. According to Zillow research, the typical security deposit renters reported paying in 2024 was $750.  Among those who pay one, the typical security deposit for a single family home is $1,000; renters in multifamily homes typically pay $530 and those in other types of buildings pay $750. Some states and localities, including New York, cap the amount landlords can charge for security deposits and when those deposits must be returned. 

3. Signs of neglect

Take a careful look around the property. Is there damage to the roof or windows? Any sign of water damage or mold? Look past décor and charm to see if things are being cared for. If you see something that raises a question, talk to the landlord or property manager before you sign the lease. If they avoid the problem or dance around the subject, you may want to keep looking.

Inspect the condition of:

• Structural components (walls, ceilings, windows, doors and floors)
• Electrical (light fixtures and switches, security alarms)
• Plumbing (bathtubs and showers, toilets and sinks)
• Appliances (refrigerator, stove, oven, dishwasher, washer and dryer)
• Mechanical systems (water heater, smoke detector, thermostat, heating and cooling systems)

Don’t be shy about turning on the water, lights and other essentials to make sure they’re working. To make sure you’ve covered everything , bring a rental walkthrough checklist with you.

4. An unreachable landlord

If a prospective property manager or landlord is tough to contact before you sign a lease, it could be an indication your calls may be dodged after you’ve moved in. Of course, everyone gets busy, so if you have a chance, ask people who live there about how well the building is managed. 

Make sure the lease contains the landlord’s full name and contact information so that if you do sign, you’ll have a way to reach them.

5. High tenant turnover

Have you noticed frequent and multiple online openings for the building? It could mean the building is more suited to short-term tenants. But high turnover could also be a sign that tenants aren’t happy.

6. Asking you to rent sight-unseen

Not being able to tour a home before signing a lease is a major red flag since it could be a sign that the rental is a scam or the rental is in bad shape. While it might be necessary to rent a home sight-unseen if you’re moving from out of the area, as a general rule you should only commit to a place after seeing it in person. Zillow's free rental touring tool can give you a good feel for a rental, and help you determine whether you want to spend time investigating it further, but you should still expect the landlord to make an in-person visit possible.

7. The lease itself has red flags

Take time to read through the rental lease and ask about anything you think might be unreasonable or excessive. At minimum, the lease should have the property address, landlord contact information, the rent amount and where and how it should be paid, the start and end dates, and what will happen when the lease ends. Other items you can expect:

1. Security deposit: The amount, when it’s due and when it can be withheld
2. Extra fees/rent: Some landlords charge extra rent for pets and require extra deposits to cover pet damage
3. Utilities: Check to see whether utilities are included in the rent, such as water, power, sewage, garage
4. Rights and obligations: Requirements for maintaining the property, including spelling out exactly who is responsible for what repairs
5. Legal entry: Conditions under which the landlord is permitted to enter your unit when you’re not there
6. Disclosures: Any additional information required by law, such as the presence of lead paint
7. Condition of the rental: Be sure to document in detail the conditions in the rental since you can expect to be charged for damage

Some cities have standard lease agreements that are approved by rental associations in those places, so don’t be afraid to compare the lease you’re being presented with to a standard one. Here’s a lease example for Baltimore. If you’ve never signed a lease before, it’s a good idea to read through it to give you an idea of what you can expect. 

Make sure any agreements made verbally between you and the landlord or property manager are put into writing and signed by both you and the landlord. The same goes for any changes you negotiate to the lease.

A landlord who doesn’t want a lease should be considered very suspect. A lease or rental agreement protects you as well as the property owner, so it’s best not to hand over any money without one.

Before signing anything, take your time and make sure that you understand everything you're signing. Your health and safety are worth the extra time.