Rental Agreement

Last Updated: April 29, 2024 by Roberto Valenzuela

Rental agreements are contracts between landlords and tenants for leasing residential or commercial property.

These contracts are legally binding agreements that outline the terms (rights and responsibilities) required of both parties. Terms generally include start date, end date, rent amount and 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

In addition to the main portion of the rental lease agreement, landlords often include addenda that specify or disclose additional terms. Here are some of the most common ones:

  • Lead Paint Disclosure – Landlords of rental properties built before 1978 must disclose the presence of lead-based paint as well as provide a pamphlet detailing its dangers.
  • Mold Addendum – Specifies that the landlord has inspected for mold and defines the tenant’s responsibilities in preventing and reporting mold.
  • Asbestos Disclosure Addendum – While there is no specific law requiring a landlord to test for or disclose the presence of asbestos, this addendum can provide peace of mind to tenants in older units.
  • Parking Rules Addendum – Details where a tenant and their guests can park, along with the number of vehicles that can be parked outside the unit.
  • No Smoking Addendum – Outlines the rules against smoking in or around the unit, and may specify certain designated smoking areas.
  • Smoke Detector and Carbon Monoxide Addendum – Specifies the landlord’s and tenant’s responsibilities for maintaining and replacing detectors in the unit.
  • Tenant Guest Policy Addendum – Outlines how many guests the tenant can have, how long a guest can stay, and when a guest becomes a tenant and must be added to the lease.
  • Residential Liability Waiver Addendum – This general liability form specifies that a landlord is not responsible for any harm to tenants or guests or damage to their personal belongings.
  • Shared Utilities Agreement Addendum – This addendum specifies how utility costs will be split among multiple tenants in a single unit or a multifamily building.

Landlord-Tenant Law

In addition to creating ironclad rental agreements, landlords must have an understanding of landlord-tenant law in their state. For example, states have differing rules around security deposits, raising rent, property entry, and more.

Maximum Security Deposits

Each state has its own rules about the maximum security deposit amount landlords are allowed to collect:

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 prior evictions)
Alaska
  • 2 months’ rent + pet deposit
  • No limit if rent exceeds $2,000 per month
Arizona
  • 1½ months’ rent
  • 2 months rent for mobile homes
Arkansas
  • 2 months’ rent
  • No limit for landlords who own fewer than 6 units and do not use a property management service
California
  • 2 months’ rent for unfurnished units
  • 3 months’ rent for furnished
  • + ½ months’ rent for a waterbed
  • Subtract one month’s rent for an active service member (unless service member has a history of poor credit, damaging rental property, or at least one person on the lease is not a spouse, domestic partner, parent, or dependent)
  • 2 months’ rent maximum 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 can be collected 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
  • 1½ months’ rent for furnished units
  • 2 months’ rent for mobile homes
  • +½ 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
  • 1½ 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 (single family properties if the owner only has one property and owner-occupied buildings with 5 or fewer units are exempt)
New Jersey
  • 1½ months’ rent
New Mexico
  • 1 month’s rent for leases 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
  • 1½ months’ rent for month-to-month
  • 2 months for longer than month-to-month
North Dakota
  • 1 month’s rent + 2 months’ rent or $2,500 (whichever is greater) for a pet deposit
  • 2 months’ rent for tenants with felonies or judgments
Ohio
  • No limit
Oklahoma
  • No limit
Oregon
  • No limit
Pennsylvania
  • 2 months’ rent for first year
  • 1 month’s rent for leases after the 1st year
Rhode Island
  • 1 month’s rent + up to 1 more month’s rent for 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 has codified how long landlords have to return a security deposit to a tenant after the lease has ended:

State Deadline To Return Security Deposit
Alabama
  • 60 days after the lease term ends and the tenant vacates the rental unit
Alaska
  • 14 days if no deductions
  • 30 days with deductions
Arizona
  • 14 business days
Arkansas
  • 60 days. Landlords with less than five units are exempt, unless a management service is used for the properties
California
  • 21 days
Colorado
  • 1 month after the tenant vacates or lease ends, which is later
  • 72 hours if the tenant moves out for a landlord’s failure to fix a hazardous situation
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 if no deductions
  • Up to 60 days with deductions (30 days after sending a list of deductions, which can be sent on the 30th day after the tenant vacates the unit)
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. Landlords comply if the mailing is postmarked by the 14-day deadline.
Idaho
  • 21 days
Illinois
  • 30 days with deductions
  • 45 days if 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 vacates (whichever is earlier)
Kentucky
  • 30 days if being used for unpaid rent
  • If tenant is owed a refund and does not respond within 60 days to a notification about returning the amount, the landlord may keep the security deposit.
Louisiana
  • 1 month
Maine
  • 30 days if lease agreement is written
  • 21 days if a tenancy-at-will
Maryland
  • 45 days
Massachusetts
  • 30 days
Michigan
  • 30 days (must be a check or money order)
Minnesota
  • 21 days (or 5 days after condemnation)
Mississippi
  • 45 days
Missouri
  • 30 days
Montana
  • 10 day if no deductions
  • 30 days if deductions
Nebraska
  • 14 days
Nevada
  • 30 days
New Hampshire
  • 30 days
New Jersey
  • 30 days (with stricter exceptions for 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 (14 days if unit is deemed unsafe)
Pennsylvania
  • 30 days
Rhode Island
  • 20 days
South Carolina
  • 30 days
South Dakota
  • 14 days
Tennessee
  • No specified time frame
Texas
  • 30 days. Deposit doesn’t need to be refunded until a forwarding address is provided
Utah
  • 30 days
Vermont
  • 14 days, including if the tenant abandons the property without notice
Virginia
  • 45 days
Washington
  • 30 days
Washington D.C.
  • 45 days if no deductions
  • 45 days with deductions to provide written notice + 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 to send notice if a contractor is required to fix damage exceeding cost of security deposit
Wisconsin
  • 21 days
Wyoming
  • 15 days after the tenant provides an address or
  • 30 days after the lease ends, whichever is later
  • +30 days if deductions are made for damage

Rent Due Grace Periods

Most states allow landlords to charge a late fee the day after rent is normally due. However, these states require a grace period before landlords can assess a financial penalty:

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 (except the grace period is 8 days if rent can’t be paid in person within the same county as the residence)
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 (if 6th day is a Sunday or holiday, due date is the next business day)
Texas
  • 2 days
Virginia
  • None (with written lease agreement)
  • 5 days (if there is no written lease agreement)
Washington
  • 5 days
Washington D.C.
  • 5 days

Late Rent Fee Maximums

Most states have set maximums for how much a landlord can charge in late fees. Even states without specific limits can still only charge “reasonable” amounts, or else risk being taken to court. “Reasonable” is generally defined as no more than 10% and should be related to actual cost the landlord incurs.

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
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
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
Missouri
  • No maximum
Montana
  • No maximum
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% of a monthly payment (whichever is greater)
  • $4 or 5% of a weekly payment (whichever is greater)
North Dakota
  • No maximum, must be reasonable
Ohio
  • No maximum, must be reasonable
Oklahoma
  • No maximum, must be reasonable
Oregon
  • Flat fee: must be reasonable
  • Per-day fee: 6% of the flat fee
  • 5-day period late fee: 5% of the monthly rent
Pennsylvania
  • No maximum, must be reasonable
Rhode Island
  • No maximum, must be reasonable
South Carolina
  • No maximum, must be reasonable
South Dakota
  • No maximum
Tennessee
  • 10% of the rent due
Texas
  • 10% of monthly rent for less than 5 units (or actual cost to landlord if it is higher)
  • 12% of monthly rent for more than 5 units (or actual cost to landlord if it is higher)
Utah
  • $75 or 10% of the monthly rent
Vermont
  • Estimate of actual costs
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 cannot raise rent during the lease, but they are allowed to raise rent at the end of a lease term. This means that a landlord can, for example, raise the rent at the end of every month for a month-to-month contract.

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

State When Can a Landlord Raise Rent?
California
  • Rent increases are limited to twice per year
Colorado
  • Rent increases are limited to once per year
Connecticut
  • Oral lease agreements are considered month-to-month, so in that case landlords can increase the rent at any time
Delaware
  • Rent increases on mobile home tenants are limited to once per year
Idaho
  • Rent increases on mobile home tenants are limited to once per six months
Maine
Massachusetts
  • Lease agreements can include tax escalator clauses, i.e., statements that a tenant’s rent may be increased during the lease term by a specified percentage of the increase in real estate taxes
Michigan
  • Lease agreements can provide for rent increases during the lease term (with 30 days’ notice) due to an increase in utility costs, property taxes, or insurance premiums
Minnesota
  • Rent increases on mobile home tenants are limited to twice per year
New Jersey
  • Landlords cannot add language to lease agreements allowing for rent increases or increase the rent during a fixed-term lease
New York
  • Rent control and rent stabilization affect some units and limit the frequency of rent increases
Oregon
  • Landlords cannot increase the rent during the first year
Washington D.C.
  • If the unit is rent-controlled, landlords must meet several criteria when increasing the rent, 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. Other states simply require “reasonable” advance notice, through any method that effectively communicates the reason and time of entry.

State Default Required Notice
Allowed Notice Types Possible To Waive Notice Requirements?*
Alabama 2 days Any actual notice (written posting on main door of residence is preferred) Yes, for separately posted scheduled services
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 (6 days for mailed notice) Written notice only (with some special exceptions) No
Colorado “Reasonable” notice (48 hours in specific cases) Usually written, depends on entry purpose Yes
Connecticut “Reasonable” notice Any actual notice No
Delaware 48 hours Written notice only (but actual notice may count in court situations) Yes, in a 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 (written only, if 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 it’s not a condition for entering 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, in an explicit waiver covering a single entry only
New Hampshire “Reasonable” notice generally (48 hours in some specific cases) Actual notice in general, written only for some specific cases 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 (written posting in/on residence is preferred) Yes
Ohio “Reasonable” notice Any actual notice No
Oklahoma 1 day Any actual notice No
Oregon 24 hours Any actual notice Yes, with detailed requirements dependent on 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 waiver for notice, but some partial waivers available
South Dakota 24 hours (by custom, 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, when addressing a tenant repair request
Washington 2 days (1 day for property showings) Written notice only No
Washington DC 48 hours Written notice only (incl. text and email, provided that the tenant replies to the notice) Yes, but 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, but 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.

While this agreement is almost always in writing, an oral agreement can be legally binding, provided the deal is for one year or less. Oral agreements are difficult to enforce, as there are no written rights or terms. For this reason, the vast majority of landlords use written rental lease agreements.

Can Landlords Create Their Own Rental Agreements?

Landlords can create their own lease agreements. Due to the complicated nature of lease agreements, landlords often start with a template and then have a landlord-tenant attorney look over the agreement. Then, the landlord can use the same basic template moving forward without having an attorney look it over each time.

What Information Should Be Included in a Rental Agreement?

Most rental agreements, at a minimum, should contain the following:

  1. The names, addresses, and contact info of all parties
  2. Address of the rental property
  3. Start and end date of the lease
  4. Amount of rent and security deposit
  5. Other costs, such as utilities, HOA, internet, and more
  6. Process and expectation 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. Condition of the property and expectations for condition upon the lease term ending
  10. Any necessary or useful addenda for topics such as mold, asbestos, smoking, or parking rules
  11. Signatures of the landlord and any adult tenants

Sources