Key Takeaways
Identify All Parties and Lease Details: Include full names of all adult tenants and specify the lease term, type (fixed or month-to-month), and property address.
Set Clear Rent Expectations: Outline rent amount, due dates, acceptable payment methods, and penalties for late payments, including any grace period.
Explain Security Deposit Terms: Detail the deposit amount, its purpose, conditions for deductions, and the timeline for returning it after move-out.
Assign Maintenance Duties: Clarify responsibilities for repairs and upkeep to prevent future disputes.
When you rent out your home a lease agreement is more than just a piece of paper ; it's a legally binding document that defines the relationship between you and your resident.
Whether you’re renting out a single-family home, an apartment, or a multi-unit property, a well-crafted lease sets the tone for a smooth and professional landlord-resident relationship.
It outlines the rules, responsibilities, and expectations that protect both parties and can help you avoid disputes, late payments, and even legal troubles down the road.
If you're new to being a landlord or simply want to improve your current lease, this guide from KRS Lynchburg will walk you through everything you need to include in your lease agreement.
Start with the Basics: Names, Property, and Dates
Your lease should begin with clear identification of all parties involved. This includes the full legal names of the landlord and all adult residents. Be sure to include the full address of the rental property, including unit number if applicable.
Next, define the lease term. Is it a fixed-term lease, or a month-to-month rental? Include the start and end dates for all lease types. In addition don’t forget to specify what happens at the end of the lease.
Rent Payment Terms
Clearly state how much rent is due, when it’s due, and how it should be paid. Specify whether payments are made via check, direct deposit, or through an online portal.
Be explicit about late fees—when they apply, how much they are, and whether there's a grace period. It's also helpful to include a clause about rent increases.
While you won’t be increasing rent during a fixed-term lease, you can indicate how much notice you will give for future increases in a month-to-month arrangement, in accordance with state or local laws.
Security Deposit Clauses
Security deposits are a key component of any lease agreement. State the exact amount collected and explain what it covers— damage beyond normal wear and tear, unpaid rent, or cleaning fees. Be transparent about the conditions for withholding all or part of the deposit.
Also include the timeline for returning the deposit after move-out. Most states require landlords to return security deposits within a certain number of days, along with an itemized list of deductions. Including this in the lease can help manage expectations and ensure compliance.
Responsibilities for Repairs and Maintenance
Maintenance clauses are crucial for preventing disputes. For example, the landlord is generally responsible for structural repairs, plumbing, and electrical issues. Residents, on the other hand, may be expected to replace light bulbs, change air filters, or keep the property clean.
Make sure to include how maintenance requests should be submitted and the expected response time. A well-structured maintenance policy protects your investment and ensures residents feel heard and supported.
Rules for Use of the Property
This section allows you to lay down house rules. Common restrictions include no smoking, no illegal activity, no loud parties, and limits on the number of overnight guests.
If you allow pets, clearly define the types of pets permitted, weight limits, and any applicable pet fees.
Clarify how common areas should be used if the property is shared. This is especially important for duplexes or multi-family homes where shared yards, driveways, or laundry rooms exist.
Entry and Notice Requirements
As a landlord, you have the right to access the property, but it must be done legally and respectfully. Include the circumstances under which you can enter the unit—such as for repairs, inspections, or emergencies—and how much notice you will provide.
Most states require 24 to 48 hours’ notice for non-emergency access. Also clarify how notices should be given—whether by email, phone call, or written letter. Establishing these expectations can help maintain trust and communication with your resident.
Subletting and Assignments
If you don’t want your resident to sublet the property or transfer the lease to someone else without permission, you’ll need to say so. Make it clear that written consent is required for any subletting or lease transfers, and include any conditions that must be met.
This clause is especially useful in college towns or areas with high turnover, where residents might try to move out mid-lease and have someone else take over.
Default and Eviction Terms
While no landlord wants to deal with a resident who breaks the lease, it’s important to be prepared. Include a section outlining what happens if the resident fails to pay rent, causes damage, or violates other lease terms.
Describe the steps you’ll take—such as notice to cure the issue—and at what point eviction proceedings may begin. Be sure your language complies with local landlord-tenant laws. Avoid overly aggressive wording and focus on procedures that are both fair and enforceable.
Legal and Disclosure Requirements
Many states require landlords to disclose certain information in a lease, such as the presence of lead-based paint, mold, asbestos, or bedbugs. If your property was built before 1978, for example, you must provide a lead-based paint disclosure.
You should also include a clause indicating that the lease complies with local, state, and federal housing laws. This adds an extra layer of legal protection for both you and your resident.
Ending or Renewing the Lease
Set expectations for what happens when the lease ends. Will you require residents to give 30 or 60 days’ notice if they don’t plan to renew? Will you be conducting a walk-through inspection prior to move-out?
If you offer renewal options, explain how and when you’ll present them. You can also specify whether you plan to raise rent upon renewal and by how much, if legally allowed.
Digital Signatures and Copies
Many landlords are now using digital leases to streamline the process. If you allow electronic signatures, state that they carry the same weight as handwritten ones. Also include a clause that each party should keep a signed copy for their records.
While this section might seem small, having a digital trail can come in handy in case of future disputes or legal issues.
Bottom Line
A lease agreement is your safety net as a landlord. It helps prevent misunderstandings, sets clear expectations, and protects your rights.
Whether you're renting out your first unit or managing a portfolio of properties, taking the time to craft a strong lease agreement is one of the best ways to set your rental business up for success.
If you're unsure about legal terms, need help staying compliant, or simply want to save time, working with a professional property management company is one of the smartest moves you can make.
They’ll help you go beyond the basics and create a lease that not only protects your property but also builds a better experience for your residents. Contact KRS Lynchburg if you have any questions!