📄 How to Write a Lease Agreement

A well-written lease is your single most important legal document as a landlord. It defines the rules of the tenancy, establishes your rights and the tenant’s obligations, protects you in court, and prevents the ambiguity that leads to disputes. A poorly written lease — or no lease at all — leaves you exposed on every front.

This guide walks through every component of a comprehensive residential lease agreement, explains what must be in your state’s lease, and flags the most common drafting mistakes that cost landlords in court.

▶ Video Overview

Step 1: Know Your State’s Requirements

Before writing a single word, research what your state mandates — and prohibits — in a residential lease. Every state has specific requirements that override whatever the lease says, and illegal clauses are void and unenforceable. Some common state-specific rules:

Check your state’s tenant screening laws and habitability laws as these directly affect what your lease must and cannot include.

Step 2: Essential Identifying Information

The foundation of every lease must include:

• Full legal names of all adult tenants — every person 18+ who will live in the unit, not just the primary applicant
• Landlord’s name and contact information — and any property manager if applicable
• Complete rental property address — including unit number, city, state, ZIP
• Lease term — specific start and end dates, or “month-to-month” with clear commencement date
• Monthly rent amount — written in both numbers and words to prevent disputes
• Occupancy limits — maximum number of occupants (must comply with fair housing guidelines — generally 2 persons per bedroom is the standard)

Step 3: Rent Payment Terms

Vague rent provisions are among the most litigated lease clauses. Be specific on every element:

• Due date — typically the 1st of the month; state it explicitly
• Grace period — how many days before rent is considered late (check your state’s minimum — many states mandate a grace period)
• Late fee amount and trigger — e.g., “$75 late fee if rent not received by the 5th day of the month.” Check your state’s late fee laws for caps and restrictions
• Accepted payment methods — check, ACH, money order, online payment. “Cash only” clauses are problematic from an evidence standpoint
• Where to pay — mailing address or specific online platform
• Returned check fee — typically $25–$50; check state law for caps
• Partial payment policy — whether you will accept partial payments and whether acceptance waives any rights

Step 4: Security Deposit Terms

Security deposit provisions must comply precisely with your state’s law — more so than any other lease clause. Include:

• Deposit amount — check your state’s security deposit laws for the maximum allowed (typically 1–3 months’ rent)
• What the deposit covers — unpaid rent, damage beyond normal wear and tear, cleaning costs
• Where it will be held — some states require separate escrow accounts and interest payment
• Return timeline — state the number of days after move-out (typically 14–30 days depending on your state)
• Itemization requirement — that you will provide a written itemized statement of any deductions
• Move-in inspection — note that a joint move-in inspection and checklist will document pre-existing conditions

Step 5: Property Rules and Restrictions

Pets

Your pet policy should be explicit and detailed. State whether pets are permitted at all, and if so: species and size limits, pet deposit or pet rent amount, and the tenant’s responsibility for pet damage. Note that emotional support animals (ESAs) and service animals are not “pets” under fair housing law and cannot be prohibited or charged pet fees. See your state’s lease termination laws for ESA accommodation requirements.

Smoking

State your smoking policy explicitly — whether smoking is prohibited everywhere on the property, only inside, or permitted in designated areas. Include e-cigarettes and vaping in your prohibition if that’s your policy. A clear written policy is essential for enforcement and deposit deductions.

Maintenance and repairs

Specify: how tenants should submit maintenance requests (in writing recommended), the landlord’s response timeline, tenant responsibility for minor maintenance (replacing light bulbs, smoke detector batteries, HVAC filters), and tenant responsibility for damage caused by their negligence. Include a clause requiring prompt reporting of maintenance issues — failure to report can reduce the landlord’s liability for resulting damage.

Alterations

State whether tenants may make any alterations, what requires written approval, and whether approved alterations must be reversed at move-out or may remain.

Step 6: Required Disclosures

Federal law requires the lead-based paint disclosure for properties built before 1978. State law adds additional requirements. Common required disclosures include:

• Lead paint (federal, pre-1978 properties)
• Mold (required in several states)
• Bedbug history (New York, Maine, and others)
• Radon (required in some states)
• Prior flooding (California, Texas, and others)
• Registered sex offenders (some states require notice of how to access registry)
• Smoking policy (California and others)
• Military ordnance / contamination (California)
• Landlord’s identity and address (virtually all states)

Step 7: Addenda to Include

Attach these as signed addenda to the main lease:

• Move-in inspection checklist — completed jointly at move-in, signed by both parties, with photos attached
• Pet addendum — if pets permitted, details all pet-related terms
• Lead paint disclosure — required federal form for pre-1978 properties
• Mold disclosure/addendum — many states require this; documents current condition and tenant obligations
• Rules and regulations — for multi-unit properties, community rules for parking, common areas, trash, noise hours
• Co-signer agreement — if a guarantor is required, a separate co-signer agreement makes their obligations clear

Download free fillable versions of all these addenda at our free landlord forms library.

8 Costly Lease Drafting Mistakes to Avoid

1. Using a generic online template without state-specific review — generic leases routinely include provisions that are illegal or unenforceable in specific states
2. Not naming all adult occupants — anyone not named on the lease has no contractual obligations and complicates eviction if needed
3. Vague or absent late fee provisions — courts require specific, pre-stated late fee amounts; vague language means no late fees
4. Missing required disclosures — each missed disclosure carries potential penalties and gives tenants legal leverage
5. Overly broad “as-is” clauses — you cannot disclaim your duty to maintain a habitable unit; courts will void these provisions
6. Waiving required notice periods — tenants cannot contractually waive statutory notice rights; such clauses are void
7. No signed move-in checklist — without a documented baseline condition, proving damage claims at move-out is nearly impossible
8. Failing to update the lease — law changes. A lease that was compliant 3 years ago may not be compliant today. Review and update annually.

Frequently Asked Questions

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