A residential lease agreement is a legally binding contract between a landlord and a tenant that outlines the terms and conditions of renting a property. A well drafted lease protects both parties by clearly laying out their rights and responsibilities. Here is a list of terms and conditions that you should consider including in a residential lease:
1. Names of All Tenants
The lease should include the full legal names of all tenants who will be living in the rental unit. This ensures that each tenant is legally responsible for following the terms of the lease including rental payments and property maintenance.
2. Lease Term and Duration
Specify whether the lease is a fixed term lease (for example, 12 months) or a month-to-month agreement. Both can be beneficial for the owner and the renter: a fixed-term lease provides stability; on the other hand a month-to-month lease offers flexibility for both parties. We offer a third kind of lease on our site: a fixed-term lease with option to purchase. There are many reasons to consider a lease with an option to purchase that benefit both owners and renters. Read our article about why to consider a lease with an option to purchase to learn more.
Whatever Kind of Lease You Need We Have You Covered
If you want to create the kind of lease you need by answering a simple online questionnaire, please choose one of the options below:
- Monthly Rental Agreement $14.95
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- Fixed Term Residential Lease with Option to Buy $14.95
3. Rent Amount and Payment Terms
Any residential lease should clearly state:
- The monthly rent amount.
- The due date for rent payments (for example, the 1st of every month).
- Acceptable payment methods (for example, Zelle, PayPal, Venmo, check).
- Fees for late payments.
- Grace periods (for example, a payment will still be considered late but a fee will not apply if payment is received within 5 days of the due date).
4. Security Deposit
The lease should detail the security deposit including:
- The amount (usually one or two months rent).
- Conditions for deductions from the deposit (for example, unpaid rent, damages beyond normal wear and tear).
- The timeline for returning the deposit after move-out.
Note: Be sure to check the laws in your state or locality regarding security deposits. A tenant may be entitled to significate compensation if these laws are not followed.
5. Maintenance and Repairs
A lease can detail who is responsible for property maintenance, including:
- Who handles routine maintenance (landlord or tenant).
- How a tenant can request repairs or emergency maintenance.
- Whether the tenant or owner is responsible for yard maintenance or snow removal.
6. Utilities and Services
Leases can specify which utilities and services are included in the rent, for example:
- Electricity
- Water & Sewer
- Gas
- Internet & Cable
- Trash Collection
7. Pet Policy
The lease can indicate whether any pets are allowed and if so any restrictions or extra deposits or fees:
- Pet types, breeds, and sizes.
- Additional pet deposits or fees.
- Behavior expectations (for example, leash requirements, noise control).
8. Rules and Regulations
A lease can list any rules tenants must follow, such as:
- Noise restrictions
- Parking rules
- Prohibited activities (for example, smoking, subleasing, illegal activities)
- Guest policies
9. Entry and Access
A lease should define the landlord's right to enter the rental unit, including:
- Required notice period before entering (for example, 24 hours unless there is an emergency).
- Reasons for entry (repairs, inspections, emergencies).
10. Termination and Renewal Terms
The lease should explain how it can be terminated or renewed, including:
- Required notice period for move out (usually 30-60 days).
- Automatic lease renewal terms (if applicable).
- Conditions and penalties for early lease termination.
11. Legal Disclosures
Ensure your lease complies with state and local laws by including disclosures, such as:
- Lead-based paint disclosure (for properties built before 1978).
- Mold, asbestos, or other environmental hazards.
- Tenant rights under local landlord-tenant laws.
Search for laws in your state and locality to make sure you include all necessary disclosures.
12. Signatures
The lease should be signed and dated by both the landlord and all tenants. This will make it legally binding and enforceable in court.
Conclusion
A detailed residential lease agreement benefits both the owner and the renter by helping prevent disputes and ensuring that all parties understand their rights and responsibilities. Whether you're a landlord drafting a new lease or a tenant reviewing an agreement, ensuring these key components are included can help protect your interests.