Rental Lease Agreements

What is a Lease Agreement?

A lease agreement is a common legal document that allows a person or business to rent property from the owner. Most residential agreements are for one (1) year, while most commercial agreements are usually for multiple years. The primary details of a lease that must be recorded within the form include:

• Date of the Agreement’s Origination
• Names and Addresses of the Landlord & Tenant
• Property Description (rental unit’s address)
• Term of Occupancy
• Security Deposit Amount
• Required Lease Payments (rent)

Once a lease agreement is signed by both parties, it becomes a legally binding document. (There is no need for witnesses or notarization.)

By State

By Type (19)

How to Make a Lease Agreement Step-By-Step

1) Do a quick legal pre-check

• Confirm your jurisdiction’s rules: deposit caps, grace periods, late-fee limits, notice to enter, required disclosures, rent control, local licensing/registration.

• Know your property type: single-family vs. multifamily, condo/HOA rules, furnished vs. unfurnished, short-term vs. long-term.

• Decide the lease type: fixed term (e.g., 12 months) or month-to-month (renewable, flexible, usually higher risk of turnover).

Pro tip: Create a 1-page “State Rules Snapshot” with: deposit limit, late-fee rules, return-of-deposit timeline, entry notice, required disclosures.

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2) Identify the parties (exactly)

• Landlord/Owner: legal name (or LLC name), mailing address, email/phone.

• Property Manager/Agent: if applicable, include contact info and authority to act.

• Tenants: legal names of all adult occupants who are contractually responsible.

• Co-signer/Guarantor: if needed, attach a separate guaranty and verify identity/income.

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3) Define the premises precisely

• Street address, unit number, parking spot(s), storage, and common areas.

• Included items: appliances, fixtures, furniture (if any).

• Condition report: attach a Move-In/Move-Out Checklist with photos; have tenants initial it.

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4) Set the term, possession, and renewals

• Start and end dates (fixed term) or start date + month-to-month.

• Possession: clarify key handoff date/time and what triggers it (cleared funds, signed lease, utilities in tenant’s name).

• Holdover: define the rent premium (e.g., 150% of monthly rent) or auto-convert to month-to-month.

• Renewal: state how notice works (e.g., 60 days) and whether rent may be adjusted at renewal.

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5) Rent economics (make this crystal clear)

• Amount & due date (e.g., “$1,950 due on the 1st of each month”).

• Where/how to pay (portal, ACH, check—discourage cash).

• Grace period (if allowed) and late fee structure that complies with state law.

• Returned payment fee (NSF).

• Proration for partial first/last months.

• Escalations: fixed increases or CPI-based (ensure legality/clarity).

Example clause (generic – adjust to your state):

Monthly rent of $____ is due on the 1st. If not received by 11:59 PM on the 3rd, a late fee of $____ or __% (whichever is less permitted by law) applies. Returned payments incur a $____ fee.

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6) Deposits, fees, and prepaid amounts

• Security deposit: amount (within legal cap), where it’s held, interest (if required), itemized deductions, and return timeline.

• Other amounts: pet deposit/fee, last month’s rent, cleaning fee (note: “non-refundable fees” are restricted in some states).

• Documentation: provide a receipt and the bank/escrow details if your state requires it.

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7) Utilities & services

• Who pays for electric, gas, water/sewer, trash, internet/cable?

• Submetered vs. ratio billing (RUBS)—disclose the method and sample calculation.

• Landscaping, snow, pest control: assign responsibility and service levels.

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8) Maintenance, repairs, and habitability

• Landlord duties: structural, systems, habitability standards.

• Tenant duties: routine upkeep (filters, bulbs, drains), prompt reporting of issues, no unapproved alterations.

• Repair timelines and emergency procedures (24/7 line).

• Mold/moisture: reporting obligations and mitigation steps.

• Pests: define when tenant vs. landlord is responsible.

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9) Use rules and house policies

• Occupancy limits and “guests vs. residents.”

• Illegal activity, nuisance, quiet enjoyment.

• Smoking/vaping/cannabis policy (and where).

• Pets: allowed? size/breed limits? pet rent/deposit?

  Note: Assistance animals are not “pets” under fair housing rules.

• Short-term rentals & subletting: usually prohibited without written consent.

• Parking: spaces, towing, EV charging rules.

• HOA/Community rules: attach and incorporate by reference.

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10) Landlord entry & showings

• Advance notice required (e.g., 24–48 hours where allowed) and valid reasons (repairs, inspections, showings).

• Emergencies: entry without notice.

• Showings near end of term: set reasonable windows and notice method.

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11) Disclosures & required attachments

• Federal: Lead-Based Paint Disclosure + EPA pamphlet for pre-1978 properties.

• State/Local (examples): bedbug, radon, flood risk, meth contamination, mold, smoke/CO detectors, landlord/agent contact info, rent control rights, utility allocation method, seismic risks, registered rental certificate, etc.

• Addenda commonly attached:

  • Pet Addendum

  • Smoking Addendum

  • Parking Addendum

  • Pool/Hot Tub Rules

  • Renter’s Insurance Requirement

  • Appliance List

  • Move-In/Move-Out Checklist

  • HOA/Condo Rules

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12) Insurance & risk allocation

• Require renter’s insurance (typical: $100k–$300k liability) and proof before move-in.

• Clarify that the landlord isn’t responsible for tenant personal property.

• Outline indemnification and any subrogation waivers (use state-safe language).

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13) Defaults, remedies, and early termination

• Nonpayment and breach procedures: notice to cure, timeline, and when termination/eviction may occur.

• Early termination options: reletting fee or liquidated damages (only if enforceable in your state), military clause (SCRA), domestic violence protections, job relocation, etc.

• Abandonment: define it and the process for handling property left behind (follow state statute).

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14) Communication, notices, and digital execution

• Where notices go (addresses, emails if allowed).

• E-signatures: explicitly authorize electronic signatures and digital delivery of copies.

• Change of terms (for month-to-month): specify notice period and method.

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15) Sign, collect funds, and deliver possession

• Confirm identity of all signers.

• Collect first month’s rent + deposit(s) in cleared funds per your policy.

• Exchange keys/fobs/garage remotes against a signed Key Receipt.

• Conduct a move-in walkthrough with the checklist and photos.

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16) Record-keeping and compliance

• Store a fully executed copy (PDF), payment ledger, inspection reports, notices, and communication logs.

• If required, maintain deposits in a trust/escrow account.

• Track deadlines: renewal notices, annual inspections, deposit return timelines.

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17) Manage renewals and move-outs

• Renewal decision: send notices on time (e.g., 60 days).

• For move-out: give a pre-move-out checklist, schedule inspection with the tenant, document condition, itemize deductions, and return deposit within the statutory deadline.

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Essential Lease Agreement Clauses Every Landlord Should Include

1. Rent Clause

Defines how much rent is owed and when it must be paid.

• Monthly rent amount

• Due date (e.g., first of each month)

• Grace period (if any)

• Late fees and when they apply

• Returned payment fees

Why it matters: Ambiguity here is the #1 cause of landlord–tenant disputes.

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2. Payment Terms & Methods

Clarifies how rent can (and cannot) be paid.

• Accepted payment methods (ACH, credit card, check, cash, online portal)

• Partial payment policy (allowed or prohibited)

• Application of payments (fees first vs rent first)

Pro tip: Explicitly state whether manual payments are accepted — courts care.

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3. Lease Term & Occupancy

Defines the duration and who may live in the unit.

• Lease start and end date

• Fixed-term vs month-to-month

• Renewal terms

• Authorized occupants only

• Guest limitations

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4. Security Deposit

Protects against damage and unpaid obligations.

• Deposit amount

• Where it is held

• Allowable deductions

• Move-out return timeline

• Interest requirements (if applicable by state)

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5. Maintenance & Repairs

One of the most important sections in any lease.

General Maintenance Responsibilities

• Landlord responsibilities

• Tenant responsibilities

• Reporting procedures for issues

HVAC

• Filter replacement responsibility

• Thermostat usage requirements

• Prohibition on unauthorized repairs

Plumbing

• Tenant responsibility for clogs caused by misuse

• Items prohibited from being flushed

• Damage reporting timelines

Electrical

• Proper usage guidelines

• No unauthorized modifications

Landscaping / Yard Maintenance

• Mowing, snow removal, leaf cleanup

• Watering requirements

• Tree or shrub damage responsibility

Board-level truth: The more specific this section is, the fewer “emergency” calls you get.

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6. Utilities & Services

Clarifies who pays for what.

• Electricity

• Gas

• Water & sewer

• Trash

• Internet / cable

• Shared meter disclosures (if applicable)

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7. Use of Property

Prevents misuse and liability.

• Residential use only

• No illegal activity

• Business use restrictions

• Noise and nuisance standards

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8. Alterations & Improvements

Controls unauthorized changes.

• No painting without approval

• No fixtures or permanent modifications

• Restoration requirements upon move-out

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9. Pets & Animals

Reduces damage and liability.

• Allowed vs prohibited animals

• Pet deposits or fees

• Service animal disclosure language

• Damage responsibility

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10. Entry & Access

Protects landlord rights while respecting tenant privacy.

• Notice requirements

• Emergency access

• Inspection rights

• Showing the property

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11. Insurance Requirements

Shifts risk appropriately.

• Tenant renter’s insurance requirement

• Minimum coverage limits

• Proof of insurance

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12. Default, Breach & Remedies

Spells out consequences clearly.

• Non-payment of rent

• Lease violations

• Cure periods

• Termination rights

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13. Early Termination & Buyout

Prevents chaos during mid-lease exits.

• Early termination fees

• Notice requirements

• Military or statutory exceptions

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14. Assignment & Subletting

Stops unauthorized occupants.

• Subletting prohibited or restricted

• Approval requirements

• Liability continuation

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15. Governing Law & Severability

Keeps the lease enforceable.

• State governing law

• Severability clause (invalid clause doesn’t void lease)

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16. Notices

Avoids “I never got it” arguments.

• Acceptable delivery methods

• Email vs physical notice

• Address for service

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17. Entire Agreement & Amendments

Locks the lease down.

• No oral modifications

• Written amendments only

• Supersedes prior agreements

Common mistakes to avoid

• Vague or illegal late-fee clauses.

• Exceeding deposit caps or mixing deposits with operating funds.  

• Missing required disclosures.

• Failing to list every adult occupant as a tenant.

• Not attaching the move-in condition checklist.

• Allowing keys before funds clear or before insurance proof is received.

Review State by State Landlord Tenant Lease Agreements Laws

Review the State by State Landlord Tenant Laws to check the requirements for your area