The short version
- A residential lease should clearly identify the parties, the property, the term and every financial obligation, including rent, fees and the deposit.
- Maintenance responsibilities, entry rules, pet terms and subletting policies prevent the most common day-to-day disputes.
- Federal law requires a lead-based paint disclosure for most housing built before 1978, and states and cities often add their own required disclosures.
- Lease terms cannot override state or local law, so any clause that conflicts with tenant protections may be unenforceable.
- Electronic signatures make it easy for every adult occupant to sign quickly and keep a secure, complete record.
A lease is more than a formality. It is the document you and your tenant will both turn to when questions come up about rent, repairs, guests, pets or moving out. A clear, complete lease prevents misunderstandings, and it gives you a solid foundation if a dispute ever reaches court.
This guide covers the clauses every residential lease agreement should include. Laws vary by state and city, and some clauses that are common in one place are restricted in another. Use a state-specific template and have a local attorney review your lease before you use it.
Parties, property and term
Start with the basics, stated precisely:
- Parties. The full legal names of the landlord or owner (the lessor) and every adult tenant (the lessee). Include the property manager if one acts on the owner’s behalf.
- Property. The full address, unit number and anything included, such as a parking space, storage unit or specific appliances.
- Occupants. Who is allowed to live in the unit, including minors, and your policy on long-term guests.
- Term. Start and end dates for a fixed-term lease, or a statement that the agreement runs month to month. Explain what happens at the end of the term, such as conversion to month to month or a required renewal notice.
Rent, fees and the security deposit
Financial terms cause the most disputes, so leave no room for interpretation.
Rent
State the monthly amount, the due date, accepted payment methods and where or how to pay. If the first month is partial, show the prorated rent calculation. Online payment and autopay options make on-time payment easier for everyone. See our guide to the best way to collect rent.
Fees
List every fee the tenant may owe: late fees, returned payment fees, pet rent, parking or amenity fees. Many states limit late fees or require that they be reasonable, and some restrict when they can be charged. Make sure your amounts follow local law.
Security deposit
Include the amount, what it can be used for, where it is held if required and how and when it will be returned. Our security deposit guide covers state limits and deadlines.
Maintenance, repairs and entry
Spell out who handles what:
- How tenants should submit repair requests, including emergencies.
- Tenant responsibilities, such as replacing light bulbs, keeping drains clear, changing air filters or caring for the yard in a single-family home.
- Landlord responsibilities, including keeping the home habitable and making required repairs within a reasonable time.
- Rules about tenant alterations, such as painting or installing fixtures.
Entry rules matter just as much. State how much notice you will give before entering for inspections, repairs or showings, and when you may enter without notice in an emergency. Many states set minimum notice periods, so match your lease to the law.
Pets, subletting and utilities
Pets
State whether pets are allowed, any limits on type, size or number, and any pet deposit, fee or monthly pet rent. Note that assistance animals for people with disabilities are generally not treated as pets under fair housing law, and pet fees typically cannot be charged for them.
Subletting and assignment
Explain whether the tenant may sublease or assign the lease and, if so, whether written approval is required. Some jurisdictions limit a landlord’s ability to refuse reasonable sublet requests.
Utilities
List each utility and service (electricity, gas, water, sewer, trash, internet) and who pays for it. If utilities are billed back or split among units, explain how.
Rules, policies and disclosures
Include community rules or attach them as an addendum: noise, smoking, parking, trash, use of shared areas and renters insurance requirements. Many landlords require renters insurance to protect tenants’ belongings and limit liability disputes.
Disclosures are where many leases fall short. Under federal law, for most housing built before 1978, you must give tenants a lead-based paint disclosure, share any known information about lead hazards and provide the EPA’s lead safety pamphlet. States and cities often require additional disclosures, which can cover topics such as mold, bed bugs, flood risk, smoking policies, shared utility meters or the identity of the owner and manager.
Tip: Keep a disclosure checklist for each state and city where you operate, and review it at least once a year. Required disclosures change more often than most landlords expect.
Signatures and storage
A lease is not complete until everyone has signed. Get signatures from the landlord or authorized agent and every adult tenant, along with any guarantor on a separate guaranty. Give each party a copy of the fully signed lease and all addenda.
Electronic signatures are generally valid for residential leases in the United States and make the process faster, especially when roommates or guarantors live in different places. TenantLoop’s leasing tools include eSignature, so leases and addenda are signed, time-stamped and stored with the tenant’s records. When the term ends, our lease renewal guide walks through the next step.
Common follow-ups. Short answers.
Who should sign the lease?
Every adult who will live in the unit should generally sign, along with the landlord or authorized manager. Adding all adults makes each one responsible for following the lease. A co-applicant or guarantor may sign separate documents.
Are electronic signatures valid on a lease?
In the United States, electronic signatures are generally legally valid for leases under federal and state electronic signature laws, with limited exceptions. Use a system that records who signed and when.
Can I write my own lease?
You can, but it is safer to start from a state-specific template and have a local attorney review it. Our California residential lease agreement is one example.
What is the difference between a fixed-term lease and a month-to-month agreement?
A fixed-term lease runs for a set period, often twelve months. A month-to-month agreement renews each month until either side gives proper notice. See our month-to-month rental agreement for an example.