What to Include in a Lease Agreement

Start with the foundational facts. List the full names of all tenants and the landlord, the property address, the date the lease is signed, and the date the tenant gets possession.

State the term clearly, whether it is a fixed term such as twelve months or a month-to-month arrangement, and explain what happens when the term ends.

Include how either party must give notice for changes or non-renewal, since notice requirements are governed by state law and missing them can invalidate an action.

Spell out the exact rent amount, the due date, and the accepted payment methods. Vague rent terms cause avoidable conflict.

Define late fees precisely: when a payment is considered late, the fee amount, and how partial payments are applied. Many states cap late fees or require a grace period, so confirm your local limits.

Cover the security deposit amount and the conditions for its return. Many states limit deposit size, require it to be held in a specific way, and set a deadline for returning it with an itemized list of deductions. Follow these rules closely, because deposit mistakes are a common source of legal trouble.

State that the property is for residential use only and is to be occupied solely by the people named on the lease, plus any minor children, depending on your local occupancy rules.

Set an occupancy limit and address guests, including how long a guest can stay before it becomes an unauthorized occupancy.

Add a subletting and assignment clause that states whether the tenant may sublet and under what conditions. Silence on this point invites disputes.

Define who is responsible for what. State which repairs and upkeep fall to the landlord and which fall to the tenant, so there is no confusion later.

Set out how tenants request repairs and define a reasonable timeframe for the landlord to respond. Writing the timeframe into the lease prevents arguments over what reasonable means.

Include an entry clause describing when and how you may enter the unit, since most states require advance notice except in emergencies.

If you have pet policies, write them out: which pets are allowed, any restrictions on size or breed, and any pet deposit or fee. A clear pet clause is far easier to enforce than a verbal understanding.

State your smoking policy plainly, whether the property is non-smoking entirely or in specific areas.

Clarify which utilities and services are included in rent and which the tenant pays directly. This single clause prevents a surprising number of disputes.

List the actions that constitute default and can lead to eviction, such as non-payment of rent, criminal activity on the premises, or breach of lease terms. Spelling these out reduces confusion if you ever need to act.

Explain the conditions for ending the lease early, including any fees, and what happens at the end of the term regarding renewal or move-out.

Add a severability clause so that if a court rules one part of the lease invalid, the rest remains in force. Many landlords also attach required disclosures, such as the federal lead-based paint disclosure for properties built before 1978.

A lease clause that conflicts with state or local law is generally unenforceable, no matter what it says. Your terms must comply with the rules in your jurisdiction.

Because requirements differ so much by state and city, have your lease reviewed by a local landlord-tenant attorney, or use a reputable state-specific lease template as a starting point.

If you would rather not draft and manage this yourself, a tenant placement service can prepare a compliant lease as part of placing your tenant, which is useful for owners who self-manage but want the paperwork handled correctly.