Use these seven common parts of a lease to familiarize yourself with the structure and important elements of a rental lease agreement between you and your tenant.
Zillow Rental Manager • May 04 2021
Before you hand over the keys to your property, both you and your tenant should consider signing a rental agreement to help prevent disputes and headaches when questions arise. A lease should specify all requirements and expectations between you and your tenant. Laws around rental agreements vary by state. Be sure to consult a local attorney if you have any questions.
You can use Zillow Rental Manager to create your own lease — a feature that is currently available in select states.
Here’s a list of important details to consider when thinking about a rental lease agreement:
Note : This guide is for informational purposes only. Zillow, Inc. does not make any guarantees about the sufficiency of the information in or linked to from this guide, or that it’s compliant with current, applicable or local laws. Landlord-tenant laws change rapidly and may be regulated at the federal, state and local levels. This resource is not a substitute for the advice or service of an attorney; you should not rely on this resource for any purpose without consulting with a licensed attorney in your jurisdiction.
It might seem obvious that you’ll know who is living in your rental, but if you’ve only been communicating with the main leaseholder you might not know their plans for other roommates or guests. You should consider including clear details about:
Think about asking the main leaseholder if family members, roommates or children will be living in the unit — even if they aren’t the ones paying rent or weren’t included in your tenant screening process — so you know how many people will be living there.
Tenants’ life situations can change. You may eventually have an extra person residing at your property, be it a significant other or a sibling. More people in the unit can mean more wear and tear and higher utility bills.
Be mindful of such possibilities and be clear on your policies for long-term guests at your property. You can specify how many consecutive nights and/or the number of total nights that a guest may stay at the property in a 6- or 12-month period. You won’t be able to keep tabs on every overnight stay, but you can outline maximum occupancy standards for your rental property in your lease agreement, as long as your policies are not discriminatory and abide by fair housing regulations .
Some tenants may want to sublet the apartment to a friend or stranger, so consider whether you’d be comfortable with allowing subletters. You may also want to be specific on your qualifications for subletters. In your lease agreement, you might want to require the tenant to obtain your written permission before turning the rental over to someone else. That way, when the tenant asks to sublet the property you’ll be able to accept or decline the offer.
If you agree to having a new tenant move in, it may be best to end the original tenant’s lease and start the process from scratch with the new tenant, including a security deposit and lease.
A lease agreement should clearly capture information about your rental, such as:
In some jurisdictions, you’re required to warn tenants of any defect in the property that you know about or is reasonable for you to know about. Typically, it’s your responsibility to provide safe and habitable living conditions for your tenant.
The “term” of the lease — which specifies the length of time the lease will be in effect — and the specifics around termination are some of the most important lease components . The lease term can vary — for example, it could be month-to-month with a specific end date or a year long with an automatic lease renewal. Be sure to check what is permitted by local laws. Also, think about the ramifications if the tenant breaks the lease before its expiration and be aware of the circumstances in which your tenant may leave early, such as those required by local law.
Know your jurisdiction’s rules about how to terminate the lease, and include those required details in your rental lease agreement . When the end of the lease comes near, you should ask your tenant if they want to renew or move out . Make sure that the tenant understands what is in their lease and whether the lease will continue month-to-month, automatically renew for another year or terminate altogether.
When the lease ends, you can specify a move-out time. Consider allowing adequate time between your former tenant moving out and the new tenant moving in to assess the property and make any repairs or upgrades.
If your tenant has violated the terms of the lease and failed to fix the situation, an eviction may be warranted. The first order of business to protect your investment is to have clear policies for what is expected of your tenant spelled out in the lease agreement . Be sure that these policies comply with your local laws. Always consult your lease agreement, along with a local lawyer, before initiating an eviction process, and keep in mind that certain states and cities may have temporary moratoriums on eviction that may apply.
Tenants may leave personal items on the property after they move out. In some states it’s considered abandoned property, and you’re allowed to dispose of it. Most states require a landlord to hold the tenant’s property for a short period of time and give notice to the tenant before disposing of the property. Always check your local laws, and clearly spell out those requirements in the lease — identifying what you plan to do with personal property left behind by the tenant.
Another important item to consider in your lease agreement is the monthly cost of rent. Specify the amount, and be clear about when rent should be paid and which forms of payment you accept. Be sure to be clear on any grace period you allow, when you will consider the payment late and the consequences once payment is late .
When considering rent payments, it’s important to include how you plan on handling any additional monthly payments, such as:
You may want to require the tenant to pay a security deposit. The amount of security deposit you can collect can depend on your circumstances and local law. You might consider the value of the furnishings — and potential repair costs — when determining the security deposit.
In your lease agreement , consider stating:
At the end of the lease you must return the deposit to the tenant less any damages; some states require the landlord to place the tenant’s security deposit in a separate interest-bearing account and return accrued interest as well. Additionally, some cities and states limit the amount of the deposit that you can collect, and others require that you offer your tenant a payment plan, rather than forcing your tenant to pay the entire deposit upfront. Make sure you understand the laws and regulations in your area. If you still have questions, talk to a local attorney.
Think through the various policies you want to implement and the responsibilities for both you and the tenant around such things as pets, smoking, maintenance and parking.
Be clear about your responsibilities as a landlord regarding regular property maintenance and repairs, including any policy for entering the property when necessary, which may be subject to local laws. Also communicate with your tenant any property-specific rules or exceptions, like if your property requires fees for certain amenities.
A lease should clearly lay out what tenants are required to maintain on the premises, if they are required to abide by noise-control rules and whether they can change the locks without your written approval. Itemize the appliances (and any furniture, if applicable) that are included in the lease, and note their condition in your move-in walkthrough . Include any other special considerations or property-specific rules and exceptions, such as policies related to parking or common spaces.
Many landlords consider including a no-smoking policy in a lease, but if this rule is especially important to you, be very clear about what it means. Consider if smoking or vaping (or both) are prohibited in the unit. If some form of smoking is permitted outside the unit, be sure to understand any local laws about where and how smoking can occur and explain:
In states where recreational marijuana is legal , decide if marijuana is allowed on the property. Spell out your requirements clearly to make sure tenants understand your expectations.
Nearly half (46%)* of renters have pets, with dogs being the most common.
If you allow pets in your property: Clearly outline the property’s pet policy or include a separate pet addendum to a lease to protect your property from any potential pet-related damages.
If you don’t allow pets: Make it clear to the tenant that they could be violating the lease if they get a pet without asking your permission first.
Keep in mind that medically necessary support and service animals are not pets. Some people require the assistance of service animals to help with a disability, so be sure you know the laws and exceptions around renting to those with service animals.
There may be other rental lease agreement requirements in your area depending on your state and local laws. In some states, a lease might need to include the name and contact information for the building’s owner and manager, a disclaimer about Megan’s Law, lead paint disclosures or other related information. You should contact a local attorney to be sure of any requirements in your area.
Don’t leave your lease agreement open to interpretation. Zillow Rental Manager offers state-specific customizable online lease agreements for free in select states.
Note: This document is for informational purposes; state/local laws vary, and landlords should consult with an attorney to assist with creation of a lease agreement . The terms referenced in this document may not be comprehensive. Depending on the type of rental, circumstances unique to the property and local laws, there may be other terms that need to be included in the lease.
*Zillow Group Consumer Housing Trends Report 2019 survey data
