Five Legal Considerations for Student Apartments
As many Indiana college students head back to school, parents of students may be looking at helping their college-age children with apartment rentals – either while they are in school or upon graduation. Aside from practical considerations such as location, layout and amenities, students and parents should also consider other factors that may impact students and parents from a legal standpoint.
Who’s on the hook for rent? If students have roommates, will all roommates be required to sign one lease agreement? If so, unless the lease indicates otherwise, this means each individual tenant is responsible for paying the entire amount of rent and lease charges if one of the roommates doesn’t pay. Will a co-signer be required? Often, student apartment leases require a parent to co-sign or guaranty the lease. If you are a parent co-signing or guarantying a lease, make sure you understand the scope of your liability. Are you only responsible for your student’s portion of rent and other charges or all rent and charges arising from the lease?
What if something happens to my stuff? Your student will have personal property in the leased apartment. Theft, fire, flood and other property damaging occurrences happen in student apartments, perhaps with more frequency than other places. Make sure you have appropriate renter’s insurance and that you understand policy coverage and exceptions.
What if someone is injured in the apartment? If an injury occurs to a guest or a roommate while in the apartment, and your student is blamed, who pays for the damages? Many renter’s insurance policies also cover personal liability costs, including legal costs if your student is sued due to such an injury. Make sure your student has appropriate insurance to cover this risk.
Can I get my security deposit back? It is important for you and your student renter to understand what charges can be deducted from the security deposit. This information should be clearly spelled out in the lease. Is the security deposit from your student combined with the other roommates and can it be used for any unpaid rent or damage at the end of the lease term? Your student may have done everything right, but their security deposit may be at a risk due to unpaid rent or damage caused by their roommates. Is your student allowed to customize the space with paint or pictures hung from nails? Are these kinds of alterations considered “damage” under the lease and will they result in a deduction from the security deposit?
Why do I have all these additional charges? Make sure you understand what other charges may be included in the lease agreement, aside from rent. Read the lease agreement and confirm with the apartment manager. Are there fees for parking or use of certain amenities? Are utilities included? If utilities are not included, is the student responsible for putting the utilities in their own name? What are the requirements from the utility company for opening a new account? If a security deposit or co-signer are required, consider the same questions that were posed above regarding the scope of the co-signer’s responsibility or the use of the security deposit.
Carefully reading the lease agreement and related documents and understanding the potential liability of both the student and the parents under the apartment lease are key to minimizing unexpected costs as students (and parents) enter this new chapter of their lives.