Rental Agreement

Last Updated: May 5, 2025 by Roberto Valenzuela

A rental agreement is a contract between a landlord and a tenant for leasing residential or commercial property.

These contracts outline the terms (rights and responsibilities) expected from both parties during the lease. Because a rental agreement is a contract, these terms are legally binding. A standard lease includes agreements on start date, end date, rent amount, rent due date, late fees, security deposit requirements, and more.

Types of Rental Agreements

Landlords can choose from a variety of rental or purchase agreements based on their needs for the property:

11 pages
Residential Lease Agreement

A standard residential lease agreement is a contract for a tenant to use a landlord’s residential property in exchange for paying rent.

1 page
1-Page Lease Agreement

A simple one-page lease agreement is a rental contract between a landlord and a tenant.

10 pages
Month-to-Month Rental Agreement

A month-to-month rental agreement is a contract which allows a tenant to rent property from a landlord, for one month at a time, in exchange for a rental payment.

9 pages
Roommate Agreement

A room rental agreement is a contract between a tenant and a roommate who occupies a portion of a rental property while sharing its common areas.

16 pages
Real Estate Purchase Agreement

A real estate purchase agreement is a binding agreement where a seller and a buyer agree and commit to the terms of the sale of real property.

7 pages
Residential Sublease Agreement

A residential sublease agreement is a contract whereby a lessee or tenant rents out the leased property or some part of it to another person, the sublessee.

24 pages
Commercial Lease Agreement

A commercial lease agreement is a binding contract between a landlord and a tenant for the rental of a property specifically for business purposes like office, retail, commercial or industrial space.

2 pages
Rental Cosigner Agreement

A rental cosigner agreement is a contract incorporated into a lease agreement between a landlord and a cosigner for the tenant.

10 pages
Rent-to-Own Agreement

A rent-to-own agreement is an agreement between a landlord and a tenant to rent a property with the option to purchase before the lease agreement expires.

2 pages
Parking Space Lease Agreement

An agreement to rent out a specific parking space. This is often used in conjunction with a rental agreement where the tenant also needs a place to park.

2 pages
Landlord-Tenant Utility Agreement

A landlord-tenant utility agreement defines which utililities the tenant is responsible for paying, what date they are due, and any other specific details that may need to be included.

Common Rental Agreement Addenda

Most rental agreements have a main agreement with the most important terms, plus some extra agreements (called addenda) which give special attention to a particular issue or disclosure. These are some of the most common types of addenda:

  • Lead Paint Disclosure – A federal requirement for rental properties built before 1978. Discloses the presence of lead-based paint and provides a pamphlet detailing its dangers.
  • Mold Addendum – Details the results of a mold inspection and defines the tenant’s responsibilities in preventing and reporting mold.
  • Asbestos Disclosure Addendum – Details the asbestos status of a rental property. Not required by law, but provides peace of mind to tenants in older units and helps reduce potential landlord liability.
  • Parking Rules Addendum – Details where a tenant and their guests can park, along with the number of vehicles which may be parked outside the rental unit.
  • No Smoking Addendum – Outlines rules against smoking in or around the unit. May specify certain designated smoking areas.
  • Smoke Detector and Carbon Monoxide Addendum – Clarifies responsibilities for maintaining and replacing detectors in the rental unit.
  • Tenant Guest Policy Addendum – Outlines how many guests the tenant can have, and how long a guest can stay without being added to the lease.
  • Residential Liability Waiver Addendum – Specifies that a landlord isn’t responsible for harm to tenants or guests, or damage to their personal belongings.
  • Shared Utilities Agreement Addendum – Sets terms for how to divide utility costs up on properties which share a utility meter with other units.

Landlord-Tenant Laws

For a hassle-free rental experience, a landlord needs some understanding of state and local landlord-tenant laws. Different places set different rules for security deposits, raising rent, property entry, and more.

Maximum Security Deposits

Each state has its own rules about the legal maximum amount a landlord may collect for a security deposit:

State Maximum Security Deposit
Alabama
  • 1 month’s rent + pet deposit, property modification costs, and anything else that could add risk for the landlord (such as a tenant with past evictions)
Alaska
  • 2 months’ rent + pet deposit
  • No limit if rent exceeds $2,000 per month
Arizona
  • 1 and 1/2 months’ rent
  • 2 months rent for mobile homes
Arkansas
  • 2 months’ rent
  • NO security deposit rules for landlords with five or fewer units (unless they use a property management service)
California
  • 1 month’s rent in most cases
  • 2 months’ rent (except to some active servicemembers) for some very small-scale landlords
  • + 1/2 months’ rent for a waterbed
  • 2 months’ rent for mobile homes
Colorado
  • 1 month’s rent for mobile homes
  • 2 months’ rent for all other housing types
Connecticut
  • 2 months’ rent (for tenants under 62)
  • 1 month’s rent (for tenants 62 years old or older)
  • Additional deposit allowed for a key or special equipment
Delaware
  • 1 month’s rent + pet deposit
  • No limit for furnished units
  • No limit for leases shorter than 1 year
Florida
  • No limit
Georgia
  • No limit
Hawaii
  • 1 month’s rent + pet deposit
Idaho
  • No limit
Illinois
  • 1 month’s rent for mobile homes
  • No limit for all other housing types
Indiana
  • No limit
Iowa
  • 2 months’ rent
Kansas
  • 1 month’s rent for unfurnished units
  • 1 and 1/2 months’ rent for furnished units
  • 2 months’ rent for mobile homes
  • +1/2 month’s rent for pet deposit
Kentucky
  • No limit
Louisiana
  • No limit
Maine
  • 2 months’ rent
  • 3 months’ rent for mobile homes
Maryland
  • 2 months’ rent
Massachusetts
  • 1 month’s rent
Michigan
  • 1 and 1/2 months’ rent
Minnesota
  • No limit
Mississippi
  • No limit
Missouri
  • 2 months’ rent + pet deposit
Montana
  • No limit
Nebraska
  • 1 month’s rent + pet deposit
Nevada
  • 3 months’ rent
New Hampshire
  • 1 month’s rent or $100 (whichever is greater) for most leases
  • No limit, for owner-occupied buildings with 5 or fewer units
  • No limit, for single-family properties where the owner owns only one rental property
New Jersey
  • 1 and 1/2 months’ rent
New Mexico
  • 1 month’s rent for leases with a term shorter than 1 year
  • No limit for leases 1 year or longer
  • 1 month’s rent for standard mobile homes
  • 2 months’ rent for double-wide mobile homes
New York
  • 1 month’s rent
North Carolina
  • 2 weeks’ rent for week-to-week
  • 1 and 1/2 months’ rent for month-to-month
  • 2 months for longer than month-to-month
North Dakota
  • 1 month’s rent for most leases + a pet deposit of up to 2 months’ rent or $2,500 (whichever is greater)
  • 2 months’ rent for tenants with felonies or judgments
Ohio
  • No limit
Oklahoma
  • No limit
Oregon
  • No limit
Pennsylvania
  • 2 months’ rent for leases during the first year
  • 1 month’s rent for leases after the 1st year
Rhode Island
  • 1 month’s rent for most leases
  • Up to 1 additional month’s rent (rentals with furnishings valued over $5,000)
South Carolina
  • No limit
South Dakota
  • 1 month’s rent + pet deposit
Tennessee
  • No limit
Texas
  • No limit
Utah
  • No limit
Vermont
  • No limit
Virginia
  • 2 months’ rent
Washington
  • No limit
Washington D.C.
  • 1 month’s rent
West Virginia
  • No limit
Wisconsin
  • No limit
Wyoming
  • No limit

Security Deposit Return Laws

Each state sets a different window of time for a landlord to return a tenant’s security deposit at the end of a lease:

State Deadline To Return Security Deposit
Alabama
  • 60 days after the lease term ends and the tenant moves out of the rental unit
Alaska
  • 14 days (no deductions)
  • 30 days (with deductions)
Arizona
  • 14 business days
Arkansas
  • 60 days, for most leases
  • NO security deposit rules for landlords with five or fewer units (unless they use a property management service)
California
  • 21 days
Colorado
  • 1 month after the tenant moves out or lease ends (whichever is later)
  • 72 hours, if the tenant moves out due to a landlord’s failure to fix a hazardous issue
Connecticut
  • 15 days after the landlord receives the tenant’s forwarding address, OR
  • 21 days after the lease ends (whichever is later)
Delaware
  • 20 days
Florida
  • 15 days (no deductions)
  • Up to 60 days with deductions:
    • 30 days after sending a list of deductions (the list may be sent as late as the 30th day after the tenant moves out)
Georgia
  • 30 days
    • (If the tenant can’t be found and didn’t leave a forwarding address, the security deposit becomes the property of the landlord after 90 days)
Hawaii
  • 14 days allowed for the landlord to postmark the returned amount of security deposit
Idaho
  • 21 days
Illinois
  • 30 days (with deductions)
  • 45 days (no deductions)
Indiana
  • 45 days
Iowa
  • 30 days
    • (If there are no delivery instructions or forwarding address, the deposit becomes the property of the landlord after 1 year)
Kansas
  • 14 days after landlord determines deductions, OR
  • 30 days after the lease term ends and tenant moves out (whichever is earlier)
Kentucky
  • No general deadline, BUT
    • Must wait at least 30 days before deducting for unpaid rent
    • Cannot claim ANY non-deducted part of a security deposit until 60 days after notifying the tenant of the available refund amount
Louisiana
  • 1 month
Maine
  • 30 days (written leases)
  • 21 days (tenancies at will)
Maryland
  • 45 days
Massachusetts
  • 30 days
Michigan
  • 30 days (and refund must be processed as a check or money order)
Minnesota
  • 21 days, for most leases
  • 5 days, for leases ending because of a condemned building
Mississippi
  • 45 days
Missouri
  • 30 days
Montana
  • 10 days (no deductions)
  • 30 days (with deductions)
Nebraska
  • 14 days
Nevada
  • 30 days
New Hampshire
  • 30 days
New Jersey
  • 30 days, for most leases
  • Stricter exceptions when a lease ends due to domestic violence, fire, flood, condemnation, or evacuation
New Mexico
  • 30 days
New York
  • 14 days
North Carolina
  • 30 days
North Dakota
  • 30 days
Ohio
  • 30 days
Oklahoma
  • 45 days
Oregon
  • 31 days, for most leases
  • 14 days, when the government declares the rental unit unsafe to occupy
Pennsylvania
  • 30 days
Rhode Island
  • 20 days
South Carolina
  • 30 days
South Dakota
  • 14 days
Tennessee
  • No general deadline, BUT
    • Cannot claim ANY non-deducted part of a security deposit until 60 days after notifying the tenant of the available refund amount
Texas
  • 30 days, BUT
    • Landlord doesn’t have to attempt a refund before the tenant provides a forwarding address
Utah
  • 30 days
Vermont
  • 14 days (including property abandoned without notice)
Virginia
  • 45 days
Washington
  • 30 days
Washington D.C.
  • 45 days (no deductions)
  • 45 days to provide written notice of deductions + additional 30 days after written notice to return deposit
West Virginia
  • 45 days after the next tenant moves in OR
  • 60 days after the lease ends (whichever is earlier)
  • +15 days, when the landlord is notifying the tenant about third-party repairs to damage which cost more than the security deposit amount
Wisconsin
  • 21 days
Wyoming
  • 15 days after the tenant provides an address OR
  • 30 days after the lease ends (whichever is later)
  • +30 days in either case, if the landlord deducts for damage

Rent Due Grace Periods

Most states let landlords charge a late fee the day after rent is normally due. The following states require a grace period before assessing late fees:

State Required Grace Period for Late Fees
Arizona
  • 5 days (mobile homes)
  • None (other housing types)
Colorado
  • 7 days
Connecticut
  • 4 days (week-to-week lease agreements)
  • 9 days (all other lease agreements)
Delaware
  • 5 days, in most cases
  • 8 days, if rent can’t be paid in person within the same county as the rental unit
Maine
  • 15 days
Massachusetts
  • 30 days
Nevada
  • None (week-to-week lease agreements)
  • 3 days (all other lease agreements)
New Jersey
  • 5 business days (certain senior tenants)
  • None (other tenants)
New York
  • 5 days
North Carolina
  • 5 days
Oregon
  • 4 days
Tennessee
  • 5 days (ending on the next business day, if the 6th day is a Sunday or holiday)
Texas
  • 2 days
Virginia
  • None (with written lease agreement)
  • 5 days (no written lease agreement)
Washington
  • 5 days
Washington D.C.
  • 5 days

Late Rent Fee Maximums

Most states set a maximum for late rent fees. Even states without specific limits still can only charge “reasonable” amounts. “Reasonable” in most cases means no more than 10% of the rental amount, and must relate to the landlord’s actual costs.

State Maximum Late Rent Fee
Alabama
  • No maximum, must be reasonable
Alaska
  • Estimated cost + interest
Arizona
  • $5/day (mobile homes)
  • None (other housing types)
Arkansas
  • No maximum, must be reasonable
California
  • No maximum, must be reasonable
Colorado
  • $50, OR
  • 5% of the rent due (whichever is greater)
Connecticut
  • $5/day up to a maximum $50, OR
  • 5% of the rental payment amount
Delaware
  • 5% of the monthly rent
Florida
  • $20, OR
  • 20% of the rental payment amount
Georgia
  • No maximum, must be reasonable
Hawaii
  • 8% of the rent due
Idaho
  • No maximum, must be reasonable
Illinois
  • No maximum, must be reasonable
Indiana
  • No maximum, must be reasonable
Iowa
  • $12/day up to $60 (rent below $700)
  • $20/day up to $100 (rent over $700)
Kansas
  • No maximum, must be reasonable
Kentucky
  • No maximum, must be reasonable
Louisiana
  • No maximum, must be reasonable
Maine
  • 4% of the monthly rent
Maryland
  • 5% of the rent due (monthly rent payments)
  • $3/week up to $12 (weekly rent payments)
Massachusetts
  • No maximum, must be reasonable
Michigan
  • No maximum, must be reasonable
Minnesota
  • 8% of the rent due
Mississippi
  • No maximum, must be reasonable
Missouri
  • No maximum, must be reasonable
Montana
  • No maximum, must be reasonable
Nebraska
  • No maximum, must be reasonable
Nevada
  • 5% of the monthly rent
New Hampshire
  • No maximum, must be reasonable
New Jersey
  • No maximum, must be reasonable
New Mexico
  • 10% of the monthly rent
New York
  • $50, OR
  • 5% of the monthly rent (whichever is greater)
North Carolina
  • $15 or 5%, whichever is greater (monthly rent payments)
  • $4 or 5%, whichever is greater (weekly rent payments)
North Dakota
  • No maximum, must be reasonable
Ohio
  • No maximum, must be reasonable
Oklahoma
  • No maximum, must be reasonable
Oregon
  • Landlord can put one of three options in the lease:
    • Flat fee: must be reasonable and customary amount for the rental market
    • Per-day fee: 6% of a reasonable flat fee (until the late rental amount is paid, minus fees)
    • Periodic late fee: 5% of the rent, billed every 5 days (until the late rental amount is paid, minus fees)
Pennsylvania
  • No maximum, must be reasonable
Rhode Island
  • No maximum, must be reasonable
South Carolina
  • No maximum, must be reasonable
South Dakota
  • No maximum, must be reasonable
Tennessee
  • 10% of the rent due
Texas
  • 10% of monthly rent (when landlord has fewer than 5 units)
  • 12% of monthly rent (when landlord has more than 5 units)
  • OR actual cost to landlord (when actual cost is greater than the above amounts)
Utah
  • $75, OR
  • 10% of the monthly rent
Vermont
  • Estimate of actual cost to the landlord
Virginia
  • 10% of the monthly rent, OR
  • 10% of the rent due (whichever is less)
Washington
  • No maximum, must be reasonable
Washington D.C.
  • 5% of the rent due
West Virginia
  • No maximum, must be reasonable
Wisconsin
  • No maximum, must be reasonable
Wyoming
  • No maximum, must be reasonable

When Can Landlords Raise Rent?

Landlords can’t raise rent during the term of a lease. They can raise rent at the end of a lease term. For instance, a landlord in most cases may raise the rent at the end of every month for a month-to-month rental agreement.

Some states have laws which limit how often a landlord can increase the rent:

State When Can a Landlord Raise Rent?
California
  • 2x per year
Colorado
  • 1x per year
Connecticut
  • No increases during the lease term
    • ALL oral leases are considered month-to-month, so landlords may increase rent at any time on an oral lease
Delaware
  • 1x per year (mobile home tenants)
Idaho
  • 1x per six months (mobile home tenants)
Maine
  • Can’t raise rent unless the rental unit meets the warranty of habitability
  • Most mobile home rent increases must apply uniformly throughout the park
Massachusetts
  • Lease agreements may include tax escalator clauses (where a landlord makes the tenant pay a percentage of any increase in real estate taxes during the lease term)
Michigan
  • Lease agreements may allow rent increases during the lease term (with 30 days’ notice) when there’s an increase in utility costs, property taxes, or insurance premiums
Minnesota
  • 2x per year (mobile home tenants)
New Jersey
  • ILLEGAL for a landlord to increase the rent during a fixed-term lease, or add language to the lease allowing rent increases
New York
  • Rent control and rent stabilization affect some units and limit frequency of rent increases
Oregon
  • ILLEGAL to increase rent during the first year of tenancy (except week-to-week tenants)
Washington D.C.
  • Rent increases for rent-stabilized units must meet specific standards, including registration with the Rental Accommodations Division and compliance with housing regulations

Landlord Entry Laws

Many states require a specific type and amount of advance notice to the tenant before a landlord can enter a rental property. Where there isn’t a specific law, the requirement is for “reasonable” advance notice, through any method which effectively communicates the reason and time for entry.

note
Every state waives (suspends) notice requirements in emergency situations. State laws differ on whether a landlord can get waivers for other situations.
State Default Required Notice
Allowed Notice Types Possible To Waive Notice Requirements?
Alabama 2 days Any actual notice (the law prefers written posting on main door of the residence) Yes (for scheduled services with a separate posted timeline)
Alaska 24 hours Any actual notice No
Arizona 2 days Any actual notice Yes (when addressing a tenant repair request)
Arkansas “Reasonable” notice Any actual notice Yes
California 24 hours for notice in person; 6 days for mailed notice Written notice only (some special exceptions) No
Colorado “Reasonable” notice in general; 48 hours in some specific cases Usually written, depends on entry purpose Yes
Connecticut “Reasonable” notice Any actual notice No
Delaware 48 hours Written notice only (but some actual notice may also count in court) Yes (via separate written agreement before the start of the tenancy)
Florida 24 hours for repairs; “reasonable” notice otherwise Any actual notice No
Georgia “Reasonable” notice Any actual notice Yes
Hawaii 2 days Any actual notice No
Idaho “Reasonable” notice Any actual notice Yes
Illinois “Reasonable” notice Any actual notice Yes
Indiana 24 hours Any actual notice No
Iowa 24 hours Any actual notice No
Kansas “Reasonable” notice Any actual notice No
Kentucky

(KY-URLTA communities only)

2 days
  • Any actual notice (most cases)
  • Written notice (required when billing for non-compliance)
No
Louisiana “Reasonable” notice Any actual notice Yes
Maine 24 hours Any actual notice No
Maryland “Reasonable” notice Any actual notice Yes
Massachusetts “Reasonable” notice Any actual notice No
Michigan “Reasonable” notice Any actual notice Yes
Minnesota “Reasonable” notice Any actual notice Yes (if a free agreement; CANNOT be a condition for signing or maintaining the lease)
Mississippi “Reasonable” notice Any actual notice Yes
Missouri “Reasonable” notice Any actual notice Yes
Montana 24 hours Any actual notice No
Nebraska 24 hours Any actual notice No
Nevada 24 hours Any actual notice Yes (ONLY explicit waivers, ONLY covering a single entry at a time)
New Hampshire “Reasonable” notice by default; 48 hours, for bedbug inspections
  • Any actual notice (most cases)
  • Written notice (bedbug inspections)
No
New Jersey 1 day Any actual notice Yes
New Mexico 24 hours Any actual notice No
New York “Reasonable” notice Any actual notice Yes (by agreement in the lease or other contract)
North Carolina “Reasonable” notice Any actual notice Yes
North Dakota “Reasonable” notice Any actual notice (the law prefers written posting in/on the residence) Yes
Ohio “Reasonable” notice Any actual notice No
Oklahoma 1 day Any actual notice No
Oregon 24 hours Any actual notice Yes (detailed requirements which depend on the waiver’s purpose)
Pennsylvania “Reasonable” notice Any actual notice Yes
Rhode Island 2 days Any actual notice No
South Carolina 24 hours Any actual notice No full notice waiver, BUT no notice requirement for some pre-announced services
South Dakota 24 hours (customary; not strict legal requirement) Any actual notice Yes, BUT disfavored by law enforcement
Tennessee

(TN-URLTA counties only)

“Reasonable” notice generally; 24 hours, for property showings Any actual notice No
Texas “Reasonable” notice Any actual notice Yes
Utah 24 hours (but tenants can’t sue if landlord fails to provide adequate notice) Any actual notice Yes
Vermont 48 hours Any actual notice Yes
Virginia 72 hours Any actual notice Yes (ONLY when addressing a tenant repair request)
Washington 2 days in general; 1 day, for property showings Written notice only No
Washington DC 48 hours
  • Written notice only
  • Text or email qualify, ONLY IF the tenant replies to the notice made in that form
Yes (ONLY in writing)
West Virginia “Reasonable” notice Any actual notice Yes
Wisconsin 12 hours Written notice only, personally delivered to the tenant if possible Yes (ONLY if written in a special lease addendum)
Wyoming “Reasonable” notice Any Yes

Rental Agreement FAQs

Here are some of the most common questions landlords ask about rental agreements:

Do I Need a Rental Lease Agreement?

Landlords must have a lease agreement with their tenants in order for it to be a legal business deal. This agreement almost always is in writing.

An oral agreement can be legally binding in some states, for a term of one year or less. Oral agreements are difficult to enforce, since any disagreement about terms is the landlord’s word against the tenant’s.

To avoid “he said, she said” disputes, the vast majority of landlords use written rental lease agreements.

Can Landlords Create Their Own Rental Agreements?

Landlords can create their own rental agreements.

Leases are complicated, so landlords often start with a template, set the most important terms to their liking, and then have a landlord-tenant attorney look over the agreement.

This lets the landlord use the same basic template for future rentals without having an attorney look it over each time.

What Information Should Be Included in a Rental Agreement?

Landlords should consider including the following information in every rental agreement:

  1. Contact info for everyone signing the lease (including names and addresses, at minimum)
  2. Address of the rental property
  3. Start and end date of the lease
  4. Amount of rent and security deposit, and when/how to pay them
  5. Other costs, such as utilities, HOA, internet, and more
  6. Scope and process for requesting repairs
  7. Lease rules, such as smoking, pets, number of vehicles, and more
  8. Guest rules, such as how long a guest can stay before they must be added to the lease
  9. Property condition checklist and expectations for conditions at the end of the lease
  10. Addendum for any relevant terms, such as mold, asbestos, or parking rules
  11. Signatures of the landlord and any adult tenants

For the most basic rental requirements, a landlord also can consider a simple lease that starts with just one page of information. The landlord can then add terms and conditions as needed.

Sources