A residential lease agreement is a contract between a tenant and a landlord that outlines the terms of the rental agreement. This form includes essential information for the lease agreement, including the amount of rent, payment schedule, rights and responsibilities of both parties, and additional details.
Residential Lease Agreements by State
What is a lease agreement?
A lease agreement is a legally binding contract between a landlord and a tenant. The agreement allows the tenant to reside in the landlord’s property in exchange for paying rent monthly.
This contract outlines the terms and conditions of this arrangement, including important dates, monthly rent amount, deposits, fees, and other relevant details.
It’s essential to note that, unlike a rental agreement (often referred to as a month-to-month lease), a lease agreement has clearly defined start and end dates. There are different types of leases, each with unique differences to consider. Read on to find out more about each one.
Different Types of Leases
There are various types of leases, each with its own distinct features and benefits. Here, we will break down all the different types of residential leases in more detail to help you make the decision that’s right for you and your situation.
Fixed-Term Lease Agreement (Standard)
A fixed-term lease agreement is the most common arrangement. This type of lease has clearly defined start and end dates, and most often lasts for 1 year. During this time, all agreed-upon terms (such as the rent amount and fees) are locked in and cannot be changed.
This type of lease provides both the tenant and the landlord with long-term stability; however, both parties also lose the flexibility that other types of lease agreements offer.
Most often, breaking this type of lease early may trigger penalties for the tenant, unless a specific qualifying condition is met (active duty military service, domestic violence, landlord harassment, etc).
Month-to-Month Lease Agreement
Month-to-month lease agreements, also known as tenancies at will, do not have a defined end date. Instead, they are typically designed to automatically renew monthly until one party provides proper notice to the other to terminate the agreement.
Month-to-month lease agreements offer increased flexibility for both landlords and tenants, but can come with less stability. Either party can end the contract with proper notice.
It is essential to note, however, that the required notice can vary from state to state, so it is always advisable to check your local and state laws.
Sublease Agreement
In a sublease agreement, the original tenant rents part or all of the property to another tenant. This type of agreement almost always requires prior approval from the landlord, and can be especially useful when the original tenant has to move or relocate (whether temporarily or permanently).
In a sublease agreement, the subtenant agrees to abide by all of the original lease terms, as well.
Room Rental (Roommate) Agreement
Roommates typically use a room rental agreement when they rent a single room in a shared living space. The agreement outlines the tenant’s responsibilities, including rent, utilities, and shared spaces.
These agreements help reduce confusion and conflict between roommates, and are often used in shared housing or student rentals.
What’s the difference between a lease and a rental agreement?
Now that we’ve broken down some of the more common residential lease agreements, let’s take a closer look at the difference between a lease and a rental agreement. While all leases are a form of rental agreement, not all rental lease agreements are considered a lease.
The terms are often used interchangeably by people outside the industry, but there are a few key differences to note.
Lease Agreement
A lease agreement is a fixed-term rental contract that most often lasts 6 months or 1 year. During this time, the amount charged for rent and other lease terms are locked in and cannot be changed.
While these agreements offer long-term stability for both the landlord and the tenant, both parties relinquish the flexibility that can be associated with other forms of rental contracts. In a fixed-term lease agreement, early termination of the lease can often result in financial penalties, unless a qualifying condition is met.
Rental Agreement
When people refer to a rental agreement, they typically mean a month-to-month agreement or a tenancy at will. These agreements do not set a precise end date; instead, they automatically renew every 30 days until the tenant or landlord terminates them.
They offer more flexibility than a fixed-term lease, making them ideal for short-term or uncertain living situations. In a rental agreement, the landlord can adjust rent terms with proper notice.
Key Differences at a Glance
Here’s a quick visual breakdown to help distinguish between a lease agreement and a rental agreement:
| Feature | Lease Agreement | Rental Agreement |
| Duration | Fixed (6-12 months or more) | Month-to-month |
| Flexibility | Low | High |
| Rent Changes | Not allowed mid-term | Allowed with notice |
| Termination Notice | Often fixed end date | 30-day notice typical |
| Best For | Long-term tenants | Short-term or flexible renters |
Key Components of a Lease Agreement
Now that we’ve clearly defined the different types of lease agreements, as well as the differences between a lease agreement and a rental agreement, let’s take a closer look at the key components that a landlord should always include in a lease agreement.
Required Disclosures
Landlords are required to include specific disclosures along with their lease agreements. The number of disclosures needed can vary significantly depending on the state, so it is essential to check your local and state laws to ensure compliance.
Standard required disclosures include:
Lead-based paint: Federal law requires that landlords disclose any known information about lead-based paint and its hazards for most homes built before 1978.
Mold disclosure: Some states require landlords to disclose information about mold contamination in a rental unit, as well as treatment options.
Asbestos: In homes built before 1981, Federal law requires landlords to disclose any known information on asbestos in the unit.
Bed bugs: Some states require that landlords disclose any known history of a bed bug infestation in a unit or adjacent units.
Flood zone status: Some states require that landlords disclose whether a property lies in a flood plain or has ever been damaged by flood waters.
Landlord contact information: Many states require landlords to include their contact information in the lease and provide written updates if any of this information changes.
The list is not exhaustive, and required disclosures vary significantly from state to state. Non-compliance with these disclosures can result in financial penalties or legal disputes, so it’s essential to follow your state’s guidelines. It can be helpful to use a lease generator to automatically include these state-mandated disclosures.
Parties Involved
All lease agreements should include the full legal names of all tenants and the landlord (or property management company). Including this information helps to clearly identify who is legally responsible for the lease terms and is essential for effective communication and enforcement of the lease terms.
Property Address
Your lease agreement should also include the full address of the property, including the unit or apartment number. Providing this information helps avoid any confusion or miscommunication in the future.
Lease Term (Start and End Dates)
Your lease agreement should specify whether it is a fixed-term or a month-to-month agreement, with start and end dates (if applicable) and the agreement renewal structure. The lease agreement template should also clearly outline expectations for move-in and move-out timing.
Rent Amount and Payment Terms
This section outlines the monthly rent amount, the due date for rent, and the accepted methods of rent collection (ACH, online, checks, cash, etc.). You will also find important information in this section regarding:
Grace periods: A grace period is the required time landlords must wait before changing a late fee.
Late fees: Landlords charge these fees when a tenant is late with their rent payment.
Returned payment charges: Landlords charge fees when a bank or payment processor returns a tenant’s check or other form of rent payment.
Terms such as these help set and clarify expectations, and also protect the landlord’s stream of income. These terms often vary significantly from state to state, so it’s essential to stay on top of all local and state laws.
Security Deposit
This section of the lease agreement outlines the amount, timing of collection, and conditions for deducting the security deposit. Many states have limits on the amount that landlords can collect as a security deposit, as well as rules to follow for returning the tenant’s security deposit (minus any deductions held to cover damages).
Some states also require landlords to inform tenants where they hold the deposit and to follow rules that govern paying or collecting interest on those funds.
Maintenance Responsibilities
As with most relationships, there is a balance of responsibilities. In most cases, landlords are responsible for repairs and maintenance around the property, including structural issues and various systems within the house, such as the HVAC system.
The tenant, on the other hand, must maintain the overall cleanliness of the property, take care of the yard, handle minor repairs, and promptly report maintenance issues to the landlord.
For routine maintenance issues or repairs, many states require landlords to provide adequate notice to tenants before entering the unit. In the event of an emergency, however, landlords are almost always allowed immediate access to the property, with no notice required.
Rules and Restrictions
There is also a section of the lease that will outline the rules and restrictions for the rental agreement. This section details the rules regarding smoking, pets, guests, quiet hours (if applicable), parking, and any HOA or city ordinances. These rules are in place to ensure that all tenants can enjoy their living space.
There are various consequences for violating these rules, depending on the severity of the violation, ranging from monetary fines to legal eviction.
Landlord Entry
To maintain an enjoyable home environment for tenants, most states have specific rules in place regarding when landlords may enter the property and the required notice period. Most often, landlords may only enter during daytime hours, and usually have to give at least 24 hours’ advance notice before entering.
These rules don’t apply, however, in the event of an emergency. In these cases, landlords can access the property immediately without providing notice.
Ending a Lease Agreement
Depending on your lease terms, your lease agreement may have a scheduled end date, or it may continue until either party gives notice to terminate. Fixed-term contracts typically do not require notice to terminate the lease agreement; however, they may include a non-renewal clause.
A month-to-month lease, on the other hand, typically requires 30 days’ notice from either party to terminate the lease agreement.
Regardless of your lease type, tenants may be entitled to early termination under certain circumstances, such as active duty military service, job relocation, domestic violence or stalking, or health or safety issues.
This section of the lease may include provisions regarding early termination clauses, lease-breaking fees, and tenant replacement requirements. If the tenant violates a provision of their lease, the landlord may terminate for cause, but they must always comply with local and state eviction laws.
Lease Addendums
A lease addendum is sometimes required when the landlord or tenant needs to change the terms of the lease agreement. An addendum is a legal document that supplements the existing lease agreement by adding new terms or conditions, while preserving the original lease intact. Most often, these addenda cover things such as pets, roommates, utility responsibilities, or a smoking policy.
Lease Agreement Final Words
If you own a rental property or want to lease a spare room to generate extra income, a lease agreement serves as a safety net to ensure that both you and your investment are protected. A well-drafted lease agreement will clearly outline all key areas of the rental transaction, ensuring that both parties fulfill their respective responsibilities.
Keep in mind that different states have varying requirements for lease agreements, so always ensure compliance with all local and state laws. Try our free lease agreement generator to view a sample PDF template and get started today.
