A rental agreement is the foundation of the landlord-tenant relationship, and including the right clauses is essential for protecting both parties. Whether you're a landlord renting out property for the first time or a tenant reviewing an agreement before signing, understanding what should be included helps prevent disputes and ensures a smooth tenancy.
Start with the basics: clearly identify all parties to the agreement (landlord and all tenants), the property address with a detailed description of the rental unit, and the lease term including start and end dates. For month-to-month agreements, specify the required notice period for termination. These foundational details prevent confusion about who is bound by the agreement and what property it covers.
Rent terms should be spelled out in detail. Include the monthly rent amount, due date, acceptable payment methods, grace period (if any), and late payment penalties. Specify where rent should be sent or paid, and address whether rent increases are possible during the lease term. If the rental includes any utilities in the rent amount, list them explicitly.
Security deposit provisions are often governed by state law, so research your state's requirements. Your agreement should state the deposit amount, the conditions under which deductions can be made, the deadline for returning the deposit after move-out, and whether interest accrues on the deposit. Many states cap the deposit amount at one to two months' rent.
Maintenance and repair responsibilities should be clearly allocated between landlord and tenant. Generally, landlords are responsible for structural repairs and maintaining habitability, while tenants are responsible for keeping the unit clean and reporting maintenance issues promptly. Specify the process for submitting maintenance requests and expected response times.
Include house rules that address common sources of conflict: pet policies (including pet deposits or monthly pet rent), smoking restrictions, noise and quiet hours, parking arrangements, guest policies, and rules about alterations or decorations. These rules should be reasonable and consistently enforced to avoid discrimination claims.
Address entry and access provisions, specifying when and how the landlord may enter the property. Most states require advance notice (typically 24-48 hours) except in emergencies. Include provisions for showing the unit to prospective tenants near the end of the lease term.
Finally, include termination and renewal provisions. Detail the process for lease renewal, the notice required for non-renewal, early termination options and penalties, and the grounds for eviction. Make sure all termination provisions comply with local landlord-tenant laws, which can vary significantly by state and municipality.
