How to Write a Lease Agreement in 10 Steps

Having an iron-clad lease agreement protects the rights of landlords and tenants alike. It ensures that both parties uphold their respective responsibilities. With this in mind, all landlords should know how to write a lease agreement, as these legally binding contracts are a critical part of renting property.

If you’re not sure how to get started, you’ve come to the right place. In this article, we’ll cover 10 steps for writing a strong lease agreement and show you how to create a state-specific rental contract using an easy-to-use lease wizard. Let’s dive in.

Step 0: First, Consider a Lease Agreement Template

Your next lease agreement must include mandatory landlord disclosures, define rental terms, establish enforceability, and more. To make sure you don’t miss anything important, you can generate a lease agreement using a customizable, online state-specific template.

These templates save you time and hassle while still guaranteeing legal compliance with federal and state laws. In just minutes, landlords protect their properties with complete, legally enforceable leases using TurboTenant’s online lease agreements. Then, they send them off for e-signature, making it easy to (figuratively) put pen to paper anywhere.

But, if you’d rather start from scratch, this article will go through all of the details your next lease agreement should include.

Step 1: Start with the Basics

If you decide to use fixed-term lease or a month-to-month agreement, every contract should start with a few essential details to correctly identify you, your tenant, and the property. Getting these basics in writing prevents confusion and makes it possible to enforce the lease in court if disputes arise.

The lease agreement should include your name and contact information, as well as the names and contact information of all tenants living in the rental unit. If you have one, you should also include the property manager’s details within the lease.

Also, be sure to include information about the rental property itself. Include the address, unit number, and a description of the property, whether it’s a single-family home, condo, or apartment. Lastly, your lease should also specify the tenancy’s start and end dates.

Step 2: Include Mandatory Landlord Disclosures

Both federal and state laws require landlords to disclose specific information about the property to tenants before signing a lease. These disclosures typically cover information that could affect tenants’ health and safety, such as prior pest infestations or illicit drug contamination.

Under federal law, landlords in all 50 states must inform tenants of the known presence of lead-based paint hazards in most properties built before 1978. Other mandatory disclosures can vary widely by state. For example, Arkansas requires only three disclosures, whereas California requires 24.

Landlords who fail to include state-specific disclosures in their lease agreements could be fined by local governments, sued by tenants, or even face criminal charges if they commit severe violations.

Step 3: Define Rent and Payment Terms

The lease agreement should explicitly state the exact rent amount, due date, accepted payment methods, and your late rent fee policy. If you offer a grace period for late payments (or state law requires you to), you should include these details as well.

As you draft your lease, outline acceptable methods for tenants to pay rent, whether by cash, check, money order, or online payment platforms. If you use an integrated rent collection platform, include it as a payment option in the lease and provide detailed instructions on how to use it.

You should also include terms for the security deposit: the amount, where you’ll store it, how and when you’ll return the funds, and the circumstances under which you may use the deposit, such as damages that exceed normal wear and tear and unpaid rent.

Landlords who assess any other fees, like pet rent or parking, must also include these charges in the lease.

Step 4: Outline Property Maintenance Responsibilities

Both you and your renter need to know what will happen if anything goes wrong with the property, so the lease should specify which party is responsible for upkeep and repairs.

Landlords typically ask tenants to maintain the rental in a clean and safe condition, care for appliances, and dispose of trash regularly. You can also ask the tenant to promptly request repairs. Meanwhile, landlords are usually on the hook for major repairs, essential services, maintaining habitability, and pest control.

Your lease should also explain how tenants can report issues and request maintenance and repairs, including the contact information for maintenance technicians, the expected response time for repairs, and the procedures to follow in case of an emergency (such as a burst pipe or a gas leak).

Step 5: Set Rules and Restrictions

Beyond the nuts and bolts, lease agreements must also outline the terms and conditions the renter must abide by while living in the unit. Clearly state your policies on pets (number, size, fees, etc.), smoking and vaping, noise, guests, and tenant behavior.

You should also clarify whether you’ll allow the tenant to make alterations or improvements to the property, like painting walls, altering the landscaping, or changing light fixtures.

Step 6: Explain Utilities and Other Costs

The lease should detail which utilities and other costs the tenant or landlord is responsible for. List any utilities you might want to include as part of the rent, such as trash or water, and state which costs the tenant must pay directly to the provider and which services you include in the rent price.

Step 7: Detail the Lease Termination and Renewal Process

Your rental contract should include instructions on how either party may terminate or renew the lease in accordance with state law, including the required notice periods and delivery methods. Unless otherwise specified by law, you can request delivery by email, Certified Mail, or in person.

You should also outline the possibility of early termination. Cover the circumstances in which the landlord or tenant can legally terminate the lease before its original end date. Breach of lease terms, military deployment, and the sale of the rental property are just a few examples.

When it comes to renewals, state whether the lease automatically renews at the end of the initial term, converts to a month-to-month tenancy, or requires a new contract altogether. Since procedures can vary by lease type, check local landlord-tenant laws for guidance on addressing renewals.

Step 8: Include Legal Clauses and Protections

All rental contracts must include essential clauses that protect both parties. The lease should describe the rules for subletting to a third party (if allowed), renter’s insurance requirements, the legal grounds for eviction, and the state-specific eviction process.

Additionally, you should detail dispute-resolution procedures and cite relevant laws to ensure legal compliance. Include a severability clause stating that if one provision is (or becomes) invalid, the remaining provisions remain valid.

Step 9: Make Sure the Lease is Clear and Compliant

Before you and your tenant sign the new lease, make sure the document is clear, concise, and legally sound. Always use straightforward language and avoid complicated legal terms. And, of course, check that your lease complies with all relevant federal and local landlord-tenant laws.

For peace of mind, you can hire an experienced attorney to analyze your contract. Or, have our AI take a look. For a quick way to ensure compliance, use a legally reviewed lease template from a trusted brand like TurboTenant.

Step 10: Finalize the Lease Agreement

Once you’ve double-checked your lease and it’s ready to go, you and your tenant must sign, or e-sign, it to make the document legally binding. Clearly mark signature blocks and sections for printed names throughout the lease.

If you rent in states like Connecticut, Ohio, or Washington, you may also need to have the lease notarized to make it legally valid.

Last but not least, you should state in the lease that both the landlord and tenant will receive a signed copy of the rental contract after signing. Then, follow through by providing those copies as quickly as possible.

Additional Clauses to Include in a Lease Agreement

While the above terms are all important (and in some cases, legally required) aspects of a lease agreement, you may want to include additional information like:

Occupancy Limits

State how many people can live in the rental under the current agreement. All tenants should be on the lease to prevent unauthorized occupants from settling in without your knowledge. Certain states and localities have strict laws on occupancy limits, so cite these laws when necessary.

Guest Policy

Clearly specify how long you permit tenants’ guests to stay in the dwelling unit before they must leave. The lease should also include the consequences if guests overstay the time limit. As a default, landlords typically limit guests to stays of 14 days.

Right of Entry

The lease agreement should also specify when and how the landlord may enter the rental unit. Specify the required notice periods (typically 24 to 72 hours, depending on local laws) and the circumstances under which you may enter with or without notice.

Move-In and Move-Out Conditions

As part of your rental protocols, create a move-in checklist documenting the property’s condition at the beginning of the tenancy. You should also establish expectations for conditions at move-out and how they should compare to those on the move-in checklist.

Appliances and Fixtures

Describe the appliances and fixtures you’re providing with the rental unit, any relevant laws, and the appliances’ condition at the beginning of the tenancy. You can list appliances and fixtures within move-in and move-out checklists, but they should be made explicitly clear regardless.

Parking and Vehicle Rules

Since most, if not all, of your tenants will have their own vehicles, you should consider including parking and vehicle information. Go over assigned parking spaces, parking fees, and the number of vehicles each tenant is permitted to have on site.

Common Areas and Shared Spaces

Address tenants’ use of common areas and shared spaces, like landings, elevators, and pools. The lease should expliciityly state who is responsible for maintaining these spaces and detail any usage rules, emphasizing all tenants’ rights to peaceful enjoyment of the property.

Assignment of Lease

“Assignment of lease” is a legal mechanism by which a tenant can transfer responsibility for a unit over to a new tenant for the remainder of the lease term. Cover whether you allow this practice, as well as liability and expectations for the original tenant.

Lease Addenda

You can use lease addenda to modify, clarify, or add other rules to a standard rental lease agreement, such as tenant-specific policies and community rules. Landlords and tenants should sign lease addenda at the same time as the lease.

Different Types of Lease Agreements

As you draft your lease agreement, consider what kind of arrangement you want to make with your tenants. These are the most common options:

Fixed-Term

Fixed-term leases typically run for a year or more, and usually expire automatically at the end of the first term unless renewed. These leases provide greater stability for landlords and tenants alike, but leave little room for negotiation or modifications if either party’s circumstances change.

Month-to-Month

As the name implies, month-to-month leases expire at the end of each month and automatically renew until either party decides to terminate the agreement. These rental contracts offer more freedom but can lead to instability, as tenants or landlords can walk away with relatively short notice.

Short-Term

Short-term leases typically run for 1 to 30 days and work well for tenants who need a place to stay for a brief stretch, like an Airbnb-style stay, a temporary work assignment, or time to bridge the gap between longer rentals. These leases offer more flexibility, but usually cost more due to quicker tenant turnover.

Write Your Next Lease Agreement Like a Pro

A well-crafted lease agreement encourages a healthy landlord-tenant relationship by outlining expectations and protecting the interests of both parties. Before listing a rental, landlords should iron out the details of the rental contract for both legal compliance and better day-to-day management.

Property management software like TurboTenant can do the heavy lifting and help you create legally reviewed lease agreements. Use TurboTenant’s fully customizable lease agreement template to make a new, legally compliant agreement that covers all the important bases for both landlords and tenants.

Sign up for a free TurboTenant account today to access expert-reviewed lease templates specific to your state, plus other helpful tools like property advertising, rental applications, tenant screening, maintenance management, rent collection, accounting and bookkeeping, and much more.

Writing a Lease Agreement FAQs

Disclaimer: This blog is for informational purposes only and is published by TurboTenant. It is not legal, financial, or tax advice. Laws and regulations for landlords vary by state and locality and may change over time. Always consult a qualified attorney, accountant, or local housing authority before making decisions related to your rental property. The publisher and authors assume no responsibility for actions taken based on the information provided.