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What to include in a residential lease agreement

Published · Landlords and tenants

A residential lease agreement should say who is renting which home, for how long, for how much, and who is responsible for what. Most disputes between landlords and tenants start with something the lease left out, so a complete lease is the cheapest protection either side can have.

What a lease should include

  1. The parties. The landlord, or the manager acting for them, and every adult who will live there. Say that tenants are jointly responsible, so each one owes the full rent.
  2. The property. The full address and unit number, and any parking, storage or furnishings that come with it.
  3. The term. A start and end date for a fixed term, or a start date for a month-to-month tenancy, and what happens when a fixed term ends.
  4. Rent. The amount, the day it is due, how to pay, the rent for a first partial month, and any grace period and late fee.
  5. The security deposit. The amount, what it can cover, and how and when it is returned.
  6. Utilities. Which bills the tenant pays and which the landlord pays.
  7. Occupants and guests. Who may live there, and how long a guest may stay.
  8. Pets and smoking. Whether they are allowed, and any pet deposit.
  9. Repairs and maintenance. How to report a problem, the landlord's duty to keep the home fit to live in, and any tasks the tenant takes on, such as the yard.
  10. Entry. How much notice the landlord gives before coming in, and what counts as an emergency.
  11. Subletting. Whether the tenant may sublet or assign the lease, and whether consent is needed.
  12. Disclosures. Anything the law requires the landlord to tell the tenant.
  13. Notices and signatures. Where each side sends notices, and the signature of the landlord and every tenant.

Rules a lease cannot override

State and local law applies whatever the lease says, and a term that breaks it is usually unenforceable. The rules that most often catch landlords out:

  • Deposit limits and deadlines. Many states cap the deposit and set a deadline to return it with an itemized list of deductions. California, for example, generally limits deposits to one month's rent and allows 21 days to return them.
  • Late fees. Some states cap late fees or require a grace period before one can be charged.
  • Notice to enter. Many states require notice before a landlord enters, often 24 hours, except in an emergency.
  • A home fit to live in. In almost every state the landlord must keep the home habitable, with working heat, water and plumbing, and a lease cannot waive that.
  • Fair housing. Federal, state and local laws forbid discrimination in renting, and require landlords to allow assistance animals for people with disabilities, even under a no-pets lease.
  • Rent control. Some cities and a few states limit rent increases and the reasons a tenancy can be ended.

Required disclosures

For a home built before 1978, federal law requires the landlord to give the tenant a lead-based paint disclosure, any reports the landlord has, and the EPA pamphlet Protect Your Family From Lead in Your Home before the lease is signed, and the lease must include the federal lead warning statement. States and cities add their own, such as known mold, flood risk, bed bug history, the name of the owner or manager, or where the deposit is held. Check the list for the place where the property is.

Fixed term or month to month?

A fixed term, usually a year, fixes the rent and the dates for both sides. Month to month is flexible: either side can end it with notice, and the landlord can change the rent with notice. Many leases start with a fixed term and continue month to month afterwards unless someone gives notice.

Before the tenant moves in

Walk through the home together and record the condition of every room with a move-in checklist, and take dated photos. It is the best evidence if you disagree about the deposit later, and some states require one. Give each tenant a copy of the signed lease and keep one yourself.

Free templates

The free residential lease agreement covers each point in the list above, for a fixed term or month to month, and builds the lease in your browser without an account. Work out a first partial month with the prorated rent calculator. To choose a tenant, start with the rental application; to allow a pet under an existing lease, add a pet addendum. Tenants subletting while they are away can use the sublease agreement, and there are more letters on the landlord and tenant page.

General information, not legal advice. Landlord and tenant law differs between states and cities and changes often; check the current rules for the property.

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