Lease Agreement Essentials: What Every Landlord Must Include

A lease agreement is the single most important document in your landlord-tenant relationship. It defines who pays what, who's responsible for what, and what happens when things go wrong.

A weak lease costs you money. Vague language leads to disputes. Missing clauses leave you exposed in court. And in most landlord-tenant disputes, judges look at the lease first — if it's not in writing, it might as well not exist.

This guide covers every clause your lease needs, explains why each one matters, and flags the state-specific requirements that trip up landlords.

The Non-Negotiable Clauses

Every residential lease in the United States should include these elements. Skip any of them and you're creating risk.

1. Parties to the Lease

List every adult (18+) who will occupy the unit as a named tenant. Every named tenant is jointly and severally liable for the full rent — meaning if one tenant skips out, you can collect the entire amount from any remaining tenant.

Include:

Full legal names of all tenants
Your legal name or entity name (LLC, trust, etc.)
If you use a property manager, clarify their authority to act on your behalf

Common mistake: Only listing one person in a couple. If the listed tenant leaves and the unlisted partner stays, you may have difficulty enforcing the lease or collecting rent.

2. Property Description

Specify the exact rental unit:

Full street address, including unit/apartment number
Any included storage spaces, parking spots, or garage bays (with numbers)
Any excluded areas (shared basement, landlord's storage, etc.)

3. Lease Term

Define when the lease starts and ends with specific dates.

Fixed-term lease: "This lease begins on March 1, 2026, and ends on February 28, 2027."
Month-to-month: "This lease begins on March 1, 2026, and continues on a month-to-month basis until terminated by either party with 30 days' written notice."

What happens at expiration? State this explicitly. Options:

Automatically converts to month-to-month
Requires written renewal
Tenant must vacate

Most landlords prefer automatic conversion to month-to-month. It gives you flexibility while avoiding accidental holdover situations.

4. Rent Amount and Payment Terms

Be specific:

Monthly rent amount: "$1,500 per month"
Due date: "Rent is due on the 1st of each month"
Grace period: "A grace period extends through the 5th of each month" (required by law in some states)
Accepted payment methods: Check, ACH, online portal, etc.
Where to pay: Mailing address or online portal URL
Prorated rent: If the tenant moves in mid-month, spell out the prorated amount

Late fees: Most states cap late fees or require a grace period:

California: No statutory cap, but courts require "reasonable" fees (typically 5–6% of rent)
Texas: Late fee limited to 10% for single-family, 12% for multi-family, after a one-day grace period (two days for SFH)
New York: Late fees capped at $50 or 5% of rent, whichever is less
North Carolina: Late fee cannot exceed $15 or 5% of rent, whichever is greater

Always check your state and local rules before setting late fee amounts.

5. Security Deposit

Your lease must state:

Deposit amount: Many states cap this (see our security deposit laws guide)
Where it will be held: Some states require separate, interest-bearing accounts
Conditions for deductions: Normal wear and tear vs. damage
Return timeline: State-mandated, typically 14–30 days after move-out

6. Maintenance and Repair Responsibilities

Clearly divide responsibilities:

Landlord typically handles:

Structural repairs (roof, foundation, exterior walls)
Major systems (HVAC, plumbing, electrical)
Appliances provided with the unit
Common areas
Pest control for infestations not caused by tenant

Tenant typically handles:

Replacing light bulbs, air filters, and smoke detector batteries
Minor unclogging of drains (hair, food)
Lawn care and snow removal (if specified — common for SFH)
Damage caused by tenant, guests, or pets

Include a process: "Tenant shall submit maintenance requests through [portal/email/phone]. Emergency requests (flooding, gas leak, no heat in winter) should be reported immediately by phone to [number]."

7. Rules About Occupancy and Guests

Maximum occupancy: Follow local housing codes (typically 2 persons per bedroom plus 1)
Guest policy: Define when a guest becomes an unauthorized occupant. Common threshold: staying more than 14 consecutive days or 30 days in a 12-month period.
Subletting: Explicitly state whether subletting is permitted, and if so, under what conditions (prior written approval, background check on subtenant, etc.)

8. Pet Policy

Even if you don't allow pets, put it in writing.

If pets are prohibited: "No pets of any kind are permitted on the premises without prior written consent from the landlord."

If pets are allowed, specify:

Types and breeds permitted (or restricted)
Weight limits
Maximum number of pets
Pet deposit amount (refundable or non-refundable — varies by state; some states ban non-refundable deposits)
Monthly pet rent
Tenant's responsibility for pet damage

Important: You cannot charge pet deposits or pet rent for service animals or emotional support animals under the Fair Housing Act. These are not pets under federal law.

9. Utilities

State who pays for each utility:

Electricity
Gas/oil
Water and sewer
Trash collection
Internet/cable (if included)

If utilities are shared (common in multi-family), explain the split method. Some cities (like San Francisco) require landlords to disclose how shared utilities are allocated.

10. Entry and Access

Every state has laws about when a landlord can enter a rental unit. Your lease should reflect these:

Typical notice requirement: 24–48 hours for non-emergency entry
Permitted reasons: Repairs, inspections, showing to prospective tenants, emergencies
Emergency exception: Landlord may enter without notice in case of emergency (fire, flooding, gas leak)

States with specific entry notice requirements:

California: 24 hours
Florida: 12 hours
Ohio: 24 hours
Oregon: 24 hours
Illinois: No state statute, but 24 hours is standard practice and may be required locally (Chicago requires 2 days)

Additional Clauses Worth Including

These aren't legally required everywhere, but they protect you.

11. Lease Violations and Remedies

Spell out consequences for violations:

First violation: Written notice with cure period (typically 7–14 days for curable violations)
Repeated violations: Right to terminate with appropriate notice
Incurable violations (illegal activity, serious damage): Immediate termination per state law

12. Noise and Conduct

"Tenant agrees not to create or permit disturbances that interfere with neighbors' quiet enjoyment of their homes. Quiet hours are from 10:00 PM to 8:00 AM."

This clause gives you grounds for action when neighbors complain.

13. Alterations and Modifications

"Tenant shall not make alterations, additions, or improvements without prior written consent from the landlord. This includes but is not limited to painting, wallpaper, fixture replacement, and installation of shelving or TV mounts."

Specify whether approved alterations must be reversed at move-out.

14. Renter's Insurance

Requiring renter's insurance shifts liability for the tenant's personal property and potential liability claims away from you.

"Tenant shall maintain renter's insurance with minimum liability coverage of $100,000 throughout the lease term and provide proof of coverage within 14 days of lease signing."

Typical renter's insurance costs $15–$30/month, so this is a reasonable requirement.

15. Mold Disclosure

Many states require mold disclosures. Even if yours doesn't, include language about:

Tenant's responsibility to report leaks and moisture promptly
Tenant's responsibility to maintain ventilation (running exhaust fans, etc.)
Landlord's obligation to remediate reported moisture issues

16. Lead-Based Paint Disclosure

Federal law requires a lead-based paint disclosure for any property built before 1978. This isn't optional. You must:

Provide the EPA pamphlet "Protect Your Family From Lead in Your Home"
Disclose any known lead-based paint or hazards
Include a lead-based paint disclosure addendum signed by the tenant

Failure to comply can result in fines of up to $19,507 per violation (2025 adjusted amount).

17. Smoking Policy

"Smoking (including e-cigarettes and vaporizers) is prohibited inside the unit and within 25 feet of the building."

Smoke damage is expensive to remediate — often $2,000–$5,000 for a thorough cleaning and repainting.

18. Parking

If parking is assigned:

Specify the number and location of spaces
State whether additional vehicles, RVs, or boats are permitted
Address guest parking rules
Include towing policy for unauthorized vehicles

19. Early Termination

Define what happens if the tenant needs to break the lease:

Early termination fee: Typically 1–2 months' rent
Re-letting fee: Cost of finding a new tenant
Notice requirement: Usually 30–60 days

Note: In most states, landlords have a duty to mitigate damages, meaning you must make reasonable efforts to re-rent the unit. You can't just collect rent for the remainder of the lease without trying.

20. Dispute Resolution

Consider including:

Mediation clause: Require mediation before litigation
Attorney's fees clause: Prevailing party in any legal dispute recovers attorney's fees (this discourages frivolous claims from both sides)
Jurisdiction: Specify which county/state courts have jurisdiction

State-Specific Requirements You Can't Ignore

Every state has its own landlord-tenant laws that override your lease. Here are some requirements landlords frequently miss:

Required Disclosures (Beyond Lead Paint)

California: Bed bug history, Megan's Law database notice, flood zone status, military ordnance location
Georgia: Landlord or property manager's name and address for legal notices must be disclosed before move-in
Oklahoma: Flooding history if the property has flooded in the past 5 years
Washington: Move-in condition checklist (required by law, not just best practice)
Virginia: Landlord must provide a written statement of tenant rights and responsibilities at move-in

Lease Language Requirements

Connecticut: Plain language requirement — lease must be "clear and coherent," written in common everyday language
Montana: Any lease provision that waives tenant rights under the Montana Residential Landlord and Tenant Act is void
Hawaii: Lease cannot contain a confession of judgment clause

The Move-In Checklist: Your Lease's Best Friend

Attach a move-in condition checklist to every lease. Walk the unit with the tenant before they move in and document:

Condition of walls, floors, and ceilings (note any marks, holes, or stains)
Working condition of all appliances
Condition of windows and window coverings
Bathroom fixtures and condition
Exterior condition (if applicable)
Photos with timestamps

Both parties sign and date the checklist. This document is your primary defense in security deposit disputes.

Digital Leases and E-Signatures

Electronic signatures are legally valid for residential leases in all 50 states under the federal ESIGN Act and state-level UETA adoptions. Popular platforms:

DocuSign: Industry standard, starts at $10/month
Avail (by Realtor.com): Free for basic plans, includes lease templates
TurboTenant: Free lease creation and e-signing
Buildium: Full property management platform with lease features

Keep signed copies for at least 3 years after the tenant moves out (longer if there's a dispute).

Common Lease Mistakes That Cost Landlords Money

Using a generic template without state customization — A Florida lease doesn't work in California. State laws on deposits, notice periods, and required disclosures vary significantly.
Vague maintenance language — "Tenant is responsible for minor repairs" means nothing. Define dollar thresholds: "Tenant is responsible for the first $75 of any plumbing repair caused by tenant use."
No clause about abandoned property — When a tenant leaves belongings behind, what do you do? State laws vary. Include a clause referencing your state's abandoned property statute.
Forgetting about lease addenda — HOA rules, community guidelines, and building policies should be attached as addenda and signed separately.
Not updating the lease annually — Laws change. Update your lease template at least once a year. An attorney review costs $200–$500 and can save you thousands.

Emotional Support Animal Landlord
Eviction Process
[Fair Housing Landlord Guide](/blog/fair-housing-landlord-guide)
[Handling Difficult Tenants Guide](/blog/handling-difficult-tenants-guide)
Homeowners Insurance

FAQs

Can I write my own lease or do I need a lawyer?

You can write your own lease, but having an attorney review it is strongly recommended, especially for your first property. State-specific templates from organizations like your local landlord association are a solid middle ground. Budget $200–$500 for a legal review.

What happens if my lease conflicts with state law?

State law wins. Any lease clause that violates state landlord-tenant law is unenforceable, and in some states, including an illegal clause can void the entire lease or expose you to penalties.

Can I include a clause that waives the tenant's right to sue?

No. Waivers of legal rights are unenforceable in most states. You can include an arbitration or mediation clause, but you can't prevent a tenant from seeking legal remedies.

How long should a residential lease be?

Most standard leases run 8–15 pages. Shorter than that and you're probably missing important clauses. Longer than 20 pages and tenants may not read it carefully. Prioritize clarity over length.

Do I need a separate lease for each tenant in a shared unit?

No. One lease with all tenants named is standard. Joint and several liability means each tenant is responsible for the full rent and full compliance with all terms. If you want to limit one tenant's liability, you'd need separate leases — but that complicates enforcement.

Can I change the lease terms mid-lease?

Not unilaterally. Changes require written agreement from all parties (a lease amendment or addendum signed by everyone). For month-to-month tenancies, you can change terms with proper notice (typically 30 days).

What's the difference between a lease and a rental agreement?

In practice, "lease" usually refers to a fixed-term agreement (6 months, 1 year), while "rental agreement" often means a month-to-month arrangement. Legally, both are binding contracts. The terms are often used interchangeably.

The Bottom Line

A strong lease is your insurance policy against disputes, damage, and lost income. Every clause serves a purpose: protecting your property, clarifying expectations, and giving you legal standing when things go sideways.

Don't copy a template from the internet and call it done. Customize it for your state, your property, and your situation. Have it reviewed by a local attorney. And update it every year.

The $300 you spend on a legal review is the best investment in your rental business.

Lease Agreement Essentials

Key Takeaways