Electronic Lease Signing: Costs, Legality & Best Practices

If you’re a busy landlord, electronic lease signing eliminates the fuss of signing rental contracts in person, saving you valuable time. Between coordinating meetings, printing stacks of paperwork, and tediously signing forms face-to-face, lease signing can be a slog.

Thankfully, with electronic lease signing, you can put a digital pen to a virtual contract 100% remotely. But before you dive in headfirst to e-signing, join us while we walk through the legal requirements and the tech involved so you can stay compliant from the jump.

Stay tuned to learn about the legal validity of e-signatures, typical costs for e-signing software, best practices for digital lease signings, and common mistakes to avoid. And, by the end of this article, you’ll know exactly how to handle electronic lease signings.

What is electronic lease signing?

Electronic lease signing is the process of signing rental agreements digitally using legally binding e-signatures. According to the National Multifamily Housing Council, 92% of property managers use electronic leasing tools, making it standard practice across the rental industry. But for many independent landlords, they still rely on pen and paper.

For landlords looking to modernize, most property management software platforms include integrated tools to help you manage each stage effectively. With TurboTenant, you can complete the entire lease signing process in five simple steps:

1. Create/upload agreement: Start with our lease generator or upload a pre-existing lease.
2. Add signer fields: Insert signature, date, and initial boxes.
3. Assign and send: Choose signers and send.
4. Landlord signs: Review the document, then add your signatures to finalize the agreement.
5. Store the official lease: Automatically email and save the signed copy to your account.

Are electronic signatures legally valid?

Yes, electronic signatures valid under the ESIGN Act, a federal law passed in 2000 that gives electronic contracts and signatures the same legal standing as handwritten ones. This legislation applies to lease agreements in all 50 states.

To meet legal requirements, electronic signatures must demonstrate user intent and remain linked to the document. Any legitimate e-signature platform should log timestamps, IP addresses, and user actions, creating a bulletproof audit trail that will withstand legal scrutiny.

Benefits of E-Signing Leases

E-signing leases offers a wide range of advantages that streamline the leasing process, including:

• Faster lease signings: Sign documents instantly, without printing or mailing delays.
• Fully remote: Landlords and tenants can sign from anywhere with internet access.
• Automatic audit trails: Tracks and logs who signed, when, and where.
• Legally binding: Complies with federal and state e-signature laws.
• Reduces physical paperwork: No need to print, scan, or store hard copies.
• Minimizes errors: Pre-filled templates reduce avoidable manual mistakes.
• Secure document storage: Digital copies are encrypted and easily accessible.

Downsides of E-Signing Leases

While electronic lease signing offers plenty of clear upsides, landlords should be aware of a few limitations:

• State-specific laws: Extra compliance steps may be mandatory in some states.
• Tech barriers: Some tenants may lack access to technology or the ability to e-sign.
• Platform risk: Unverified software can expose information or invalidate agreements.

Typical Costs for Electronic Lease Signing

Many property management platforms charge per electronic signature, which means expenses can add up fast. For reference, Buildium charges $5 per signature in its Essential tier, while DoorLoop charges $1 per document in its Pro tier. 

TurboTenant, however, includes unlimited e-signatures with all Premium accounts, making it easy to account for costs even as your portfolio grows. Just note that in order to e-sign documents, landlords must opt for the Premium account. 

Best Practices for E-Signing Lease Agreements

To get the most out of electronic lease signing, follow these four essential guidelines to stay compliant and organized:

Use Legally Compliant E-Signature Software

The most critical step in e-signing lease agreements is to use legally compliant property management software. Legitimate platforms capture clear intent to sign, lock documents after signing, and generate time-stamped audit trails.

When selecting your platform, look for e-signing features such as user authentication, detailed activity logs, and secure cloud storage that protects your leases for future reference.

Review the Lease Before Sending it Off for Signatures

The last thing landlords need is to discover a missing clause or outdated term after both parties have already signed a lease agreement. Once a landlord and tenant sign a document, making further changes may require the parties to re-sign (but only if both agree to the terms).

Treat e-signatures like wet signatures, and use state-specific lease templates reviewed by legal professionals to ensure all terms and clauses are valid and up-to-date.

Enable Audit Trails

Audit trails create a detailed digital record of the entire lease signing process. They track timestamps, IP addresses, device types, and all user actions, from the time they open the document to when they finalize with a signature. These logs help prove that the correct person signed the lease under legitimate, verifiable conditions.

If a dispute arises over timing, identity, or the signer’s intent, an audit log will provide objective data to support lease enforcement. Without this digital paper trail, it can be much harder to prove who signed the lease, when they signed it, or whether or not the signature is even valid.

Send and Securely Store Signed Documents

You can’t afford to misplace a signed lease. It’s the legally binding document outlining each party’s rights and responsibilities, and it’s the first thing you’ll need to reference if a dispute with your tenant arises.

To ensure that your leases never get lost, destroyed, or misplaced, use property management software that automatically stores signed contracts in a secure, cloud-based account you can access anytime, anywhere.

Test the Workflow Before Going Live

Before ever attempting an electronic lease signing, test the process by running through the workflow with a sample document. Ensure that all signature and initial fields function properly, emails send correctly, and the signing experience is seamless for everyone involved. Taking the time to pinpoint potential issues can prevent delays, errors, and disputes down the road.

Common Mistakes to Avoid

Follow these four tips to avoid common errors and keep your electronic lease signing process legitimate and legally sound:

Overlooking State-Specific E-Sign Laws

States like California, New York, Illinois, and Washington have their own electronic signature laws in addition to federal rules.

For example, California follows the Uniform Electronic Transactions Act (UETA), which requires signer consent and a verifiable link between the signature and the signer. New York and Illinois use separate statutes that closely resemble the UETA but incorporate their own legal language.

To stay out of legal hot water, always confirm that your software meets your state’s e-signature laws. These rules are subject to change, so be sure to review the current regulations before sending any lease agreements for electronic signature.

Using Non-Compliant E-Sign Platforms

Not all electronic lease signing platforms meet legal standards for rental agreements. For example, some fail to verify signer identity, record audit trails, or even lock documents from future edits, making them shaky choices that could invalidate a lease agreement.

TurboTenant, by contrast, avoids these shortcomings. It verifies signer identity, records a comprehensive audit trail, locks completed documents, and securely stores everything in the cloud.

Failing to Verify Tenant Identity

If you can’t verify an e-signer’s identity, good luck enforcing the lease in court. Thankfully, reputable e-sign software verifies identity through email authentication, IP tracking, and time stamps. These tools help confirm who signed the lease and protect landlords in the event of disputes.

Losing or Failing to Save Signed Copies

Keeping track of physical leases can be messy, and losing them can create serious liability if conflicts pop up. Instead of going the old-fashioned route, use software that automatically stores signed copies in encrypted servers, keeping your files safe and accessible on demand.

Skipping a Final Review After Signing

Just because you and your tenant have signed a lease doesn’t mean the job is finished. Always review the final, signed contract to confirm that both parties filled every field correctly. Missing signatures, dates, or initials can cause enforcement issues down the line if left unaddressed.

(Legal) Electronic Lease Signing With TurboTenant

TurboTenant, equipped with proven electronic lease signing capabilities, is your go-to option for saving time and staying compliant. For landlords, speed and accuracy are paramount, and choosing the right e-signing platform is critical.

And TurboTenant does more than handle lease signing. Landlords can also use it to market properties, screen tenants, generate state-specific leases, collect rent, and manage accounting online.

Sign up for a free TurboTenant account to collect legal e-signatures and streamline your rental operations right away.

FAQ: E-Signing Lease Agreements