How to Write a Lease Agreement: Landlord's Guide

A well-written lease agreement is one of your most important tools as a landlord. It protects your property, sets clear expectations, and helps prevent disputes. Here's your complete guide to writing an effective lease agreement.

Why a Good Lease Matters

Protection for You

A solid lease agreement:

• Protects your property: Sets rules for use and care
• Defines responsibilities: Who pays for what
• Establishes terms: Rent, duration, rules
• Legal protection: Enforceable in court
• Prevents disputes: Clear expectations

Protection for Tenants

A good lease also:

• Clarifies rights: What tenants can expect
• Sets boundaries: What's allowed
• Defines terms: Duration, rent, rules
• Provides security: Know what to expect

Essential Lease Components

1. Parties and Property

Include:

• Landlord name and address: Full legal name
• Tenant name(s): All adult occupants
• Property address: Complete address with unit number
• Property description: Type, size, amenities

Why it matters: Identifies who and what the lease covers

2. Lease Term

Include:

• Start date: When lease begins
• End date: When lease expires
• Renewal terms: How to renew
• Early termination: Conditions and penalties

Common terms:

• 12 months: Most common
• 6 months: Shorter commitment
• Month-to-month: Flexible but less stable

Why it matters: Defines the rental period

3. Rent Amount and Payment

Include:

• Monthly rent: Exact amount
• Due date: When rent is due
• Grace period: Days before late fees
• Late fees: Amount and when applied
• Payment methods: How to pay
• Where to pay: Address or online

Example: "$1,500 per month, due on the 1st of each month. Late fee of $50 applies after 5-day grace period."

Why it matters: Clear payment expectations prevent disputes

4. Security Deposit

Include:

• Amount: Exact deposit amount
• Purpose: What it covers
• Holding: Where it's held
• Return terms: When and how returned
• Deductions: What can be deducted

Legal requirements vary by state:

• Maximum amounts
• Interest requirements
• Return timelines
• Documentation needs

Why it matters: Protects against damage, defines return process

5. Occupancy Limits

Include:

• Maximum occupants: Number allowed
• Named tenants: Who can live there
• Guest policy: Overnight guests
• Subletting: Whether allowed

Example: "Maximum 2 occupants. Only named tenants may reside. Guests over 7 days require approval."

Why it matters: Prevents overcrowding and unauthorized occupants

6. Use of Property

Include:

• Permitted use: Residential only typically
• Prohibited activities: Illegal activities, business use
• Quiet enjoyment: Right to peaceful use
• Alterations: What changes are allowed

Why it matters: Defines how property can be used

7. Maintenance and Repairs

Include:

• Landlord responsibilities: What you maintain
• Tenant responsibilities: What they maintain
• Reporting requirements: How to report issues
• Emergency procedures: What constitutes emergency
• Access rights: When you can enter

Why it matters: Clarifies who handles what

8. Utilities

Include:

• Who pays: Landlord or tenant
• Which utilities: Electricity, gas, water, etc.
• Transfer procedures: How to set up
• Responsibility: Who's responsible if unpaid

Why it matters: Prevents utility disputes

9. Pets Policy

Include:

• Allowed or prohibited: Clear policy
• Pet deposit: If allowed, deposit amount
• Pet rent: Monthly fee if applicable
• Restrictions: Size, breed, number limits
• Service animals: Legal requirements

Why it matters: Prevents unauthorized pets, protects property

10. Rules and Regulations

Include:

• Noise policies: Quiet hours
• Parking rules: Where to park
• Trash disposal: How to handle
• Smoking policy: Allowed or prohibited
• Common areas: Rules for shared spaces

Why it matters: Maintains property condition and neighbor relations

11. Entry and Inspection

Include:

• Notice requirements: How much notice required
• Entry reasons: When you can enter
• Emergency entry: No notice situations
• Inspection rights: Regular inspections

Legal requirements: Most states require 24-48 hours notice

Why it matters: Respects tenant privacy, protects your rights

12. Default and Termination

Include:

• Default conditions: What constitutes default
• Cure period: Time to fix issues
• Termination rights: When lease can end
• Eviction process: Legal procedures

Why it matters: Defines when and how lease can end

13. Legal Provisions

Include:

• Governing law: State laws apply
• Severability: If one part invalid, rest stands
• Entire agreement: Lease is complete agreement
• Modifications: How to change lease
• Notices: How to give legal notice

Why it matters: Legal protection and enforceability

State and Local Requirements

Research Your Area

Lease requirements vary by:

• State laws: Different in each state
• Local ordinances: City/county rules
• Rent control: If applicable
• Habitability laws: Minimum standards

Common State Requirements

Security deposits:

• Maximum amounts
• Interest requirements
• Return timelines

Entry notice:

• Required notice periods
• Emergency exceptions

Rent control:

• Applicable areas
• Increase limitations

Habitability:

• Minimum standards
• Required disclosures

Required Disclosures

Common disclosures:

• Lead paint: For properties built before 1978
• Mold: If known issues
• Bed bugs: If known problems
• Sex offenders: Some states require
• Flood zones: If applicable

Writing Tips

1. Use Clear Language

Avoid:

• Legal jargon
• Complex sentences
• Ambiguous terms

Use:

• Plain language
• Simple sentences
• Specific terms

2. Be Specific

Instead of: "Tenant must maintain property"

Use: "Tenant must mow lawn weekly, remove trash, and keep property clean"

3. Cover All Scenarios

Think about:

• What if tenant doesn't pay?
• What if property is damaged?
• What if tenant wants to leave early?
• What if you need to enter?

4. Get Legal Review

Consider:

• Attorney review for first lease
• State-specific templates
• Legal updates
• Professional templates

Using Templates vs. Custom Leases

Templates

Pros:

• Include standard clauses
• Legally reviewed
• Save time
• Cover common situations

Cons:

• May not fit your needs
• May miss local requirements
• Generic language

Custom Leases

Pros:

• Tailored to your needs
• Specific to your properties
• Include unique requirements

Cons:

• More expensive
• Requires legal review
• Time-consuming

Best Approach

Use templates as starting point, customize for:

• Your specific needs
• Local requirements
• Property-specific rules
• State laws

Digital Lease Signing

Benefits

Efficiency:

• Sign from anywhere
• No printing/mailing
• Instant completion
• Digital storage

Legality:

• Legally binding
• Court-admissible
• Timestamped
• Secure

Convenience:

• Faster process
• Better experience
• Easy access
• Professional appearance

Tools

DocuSign: Popular e-signature platform

Property management software: Often includes e-signature

Other platforms: Various options available

Common Lease Clauses

Early Termination

Include:

• Conditions for early termination
• Penalty or fee
• Notice requirements
• Re-letting responsibilities

Renewal

Include:

• Automatic renewal or not
• Notice requirements
• Rent increase terms
• Renewal process

Subletting

Include:

• Whether allowed
• Approval process
• Conditions
• Responsibilities

Alterations

Include:

• What's allowed
• Approval process
• Restoration requirements
• Who pays

Red Flags to Avoid

Illegal Clauses

Avoid:

• Waiving tenant rights
• Discriminatory terms
• Unenforceable penalties
• Illegal requirements

Unclear Terms

Avoid:

• Vague language
• Ambiguous requirements
• Unclear responsibilities
• Missing details

Missing Essential Terms

Ensure you include:

• All required disclosures
• State-specific requirements
• Important protections
• Clear terms

Best Practices

1. Review Annually

Update lease:

• Legal changes
• Market conditions
• Experience-based improvements
• New requirements

2. Keep It Current

Stay updated on:

• State law changes
• Local ordinance updates
• Court decisions
• Best practices

3. Be Consistent

Apply lease:

• Equally to all tenants
• Consistently
• Fairly
• Legally

4. Document Everything

Keep records of:

• Signed leases
• Amendments
• Notices
• Communications

5. Get Professional Help

Consult:

• Real estate attorneys
• Property management professionals
• Legal resources
• Industry associations

The Bottom Line

A well-written lease agreement is essential for protecting your property and your rights as a landlord. Key points:

• Include all essentials: Don't miss important terms
• Be clear and specific: Avoid ambiguity
• Follow local laws: Comply with requirements
• Review regularly: Keep it current
• Get legal help: When needed

Property management software often includes lease templates, digital signing capabilities, and lease management tools that make creating and managing leases much easier. This can save you time and ensure you don't miss important terms.

Remember, a good lease protects both you and your tenant. Take the time to create a comprehensive, clear, and legally compliant lease agreement.

Explore our lease management features and document management system. Learn about essential property management features and see our complete feature list. Use property management software with built-in lease management and digital signing to streamline your lease creation and management process.