How to write a residential lease agreement

Why a lease should be in writing

A lease is the rulebook for a rental. Verbal agreements can be valid for short tenancies, but they are hard to prove, and in many states a lease longer than one year must be written to be enforced.

A written lease protects both sides. It shows what rent was agreed, who pays for what, and how either party can end the tenancy, so a disagreement starts from the document and not from memory.

What to include

• Names of everyone who will be a tenant, and any other adult occupants.
• The property address and what comes with it, such as parking, storage or appliances.
• The term: a fixed length with clear start and end dates, or month to month.
• Rent: the amount, the due date, how it is paid, any grace period and any late fee.
• The security deposit: the amount, where it is held, what deductions are allowed and when it must be returned.
• Utilities: which ones the tenant pays and which the landlord pays.
• Repairs and maintenance: who handles what, and how to report a problem.
• Entry: how much notice the landlord gives before coming in, except in an emergency.
• Rules on pets, smoking, guests, noise and subletting.
• How the lease renews or ends, and how much notice each side must give.
• Signatures and the date from every adult tenant and the landlord.

Disclosures that commonly apply

Federal law requires landlords to give tenants information about lead-based paint hazards before leasing most housing built before 1978. Many states and cities add their own required notices, for example about the security deposit account, mold, flooding, bed bugs or the identity of the landlord or agent.

Required notices vary widely by state and by city. Check your state's landlord-tenant rules and any local ordinance before you sign.

Rules that limit what you can write

Landlord-tenant law is mostly state and local, and some rules cannot be changed by agreement. Common examples are caps on security deposits, limits on late fees, required notice before a rent increase, and rules about when a landlord may end a tenancy.

Some cities add rent control or require a stated reason before a tenancy can end. A lease clause that conflicts with these rules may simply not be enforced, so a form written for one state can cause problems in another.

Common mistakes

• A vague end date, or no statement of what happens when the term ends.
• A late fee higher than local rules allow.
• No record of the unit's condition at move-in, which makes deposit disputes hard to settle.
• Side promises made verbally that contradict the written lease.
• Missing a required notice, which can limit what the landlord can enforce.
• Using a form written for a different state without checking local requirements.

After you sign

Give every signer a complete copy. Complete a move-in checklist with photos and have both sides sign it. Keep records of rent payments and any repair requests. If the deposit is held in a separate account, keep the details with the lease.