Residential lease agreement template for landlords and tenants

What a residential lease should cover

A lease is easier to enforce when it spells out the basics:

• the names of every adult who will live in the home;
• the exact address and what is included (parking, appliances, storage);
• the term, start date and what happens at the end;
• the monthly rent, due date, late fee and grace period;
• the security deposit and when it is returned;
• who pays utilities, and rules about pets and smoking;
• how the landlord can enter and how either side can end the lease.

Fixed term or month-to-month

State law fills in the details

Security deposit caps, return deadlines, late fee limits, entry notice and eviction steps differ from state to state, and some cities add their own rules. For example, some states cap the deposit at one or two months of rent, and many require the landlord to return it within 14 to 30 days. The template refers to the law of the state you choose, but it cannot replace local advice: check your state housing agency or an attorney.

Steps to write a lease with nothing missing

Writing a lease takes a method. So, you avoid gaps that cause disputes.

1. First, gather the names of every adult tenant and the exact address.
2. Next, note what the rent includes, such as parking or appliances.
3. Then, set the rent, due date, grace period and late fee.
4. Choose the term: 12 months, 6 months or month-to-month.
5. Finally, prepare the addenda and sign two copies.

For example, state who pays water, gas and electricity. That detail prevents arguments after the first bill."

Steps to write a lease agreement with nothing missing

Writing a lease takes a method. So, you avoid gaps that cause disputes.

1. First, gather the names of every adult tenant and the exact address.
2. Next, note what the rent includes, such as parking or appliances.
3. Then, set the rent, due date, grace period and late fee.
4. Choose the term: 12 months, 6 months or month-to-month.
5. Finally, prepare the addenda and sign two copies.

For example, state who pays water, gas and electricity. That detail prevents arguments after the first bill."

The security deposit and how it comes back

A security deposit covers unpaid rent and damage. Therefore, it should stay reasonable.

• Many states cap it at one or two months of rent.
• Most states set a deadline of 14 to 30 days to return it.
• The landlord usually sends an itemized list of deductions.
• Normal wear and tear is not a valid deduction.

For example, paint that faded over time does not justify a charge. However, a large hole in a wall does. Also, keep copies of every payment and photo."

Fixed term compared with month-to-month

The term shapes your flexibility. This table compares the options.

Also, notice periods differ: many states require 30 days to end a month-to-month tenancy. To track your return, see the rental yield calculator. After rent arrives, give the tenant a rent receipt."

Documents to attach and mistakes to avoid

A lease rarely stands alone. So, gather the right papers.

• First, the lead paint disclosure for homes built before 1978.
• Next, the move-in checklist with photos.
• Then, house rules, such as quiet hours and parking.

However, common errors remain: an illegal clause, a missing name or an unclear deadline. So, reread everything before you sign. For the paperwork around a landlord business, make an invoice. To plan a purchase, estimate closing costs."

Proofreading your lease agreement before you sign

Always reread a lease agreement before you sign. So, take the time to do it together.

• First, check the names, the address and the unit number.
• Next, confirm the rent, the due date and the deposit.
• Then, read the termination clause and the notice period.

For example, an unclear notice period quickly causes a dispute. Also, initial each page if both sides want that. A signed lease agreement binds both parties, so ask questions first. Finally, give each person a copy and file the lease agreement with its addenda.