When renting a property, one of the most important things to remember is that both the landlord/lessor and the tenant/lessee are obligated toward each other. As a result, they both have specific duties and responsibilities regarding the lease. This information should be written down in a lease agreement to ensure that the parties are legally bound to fulfil what they have agreed upon.
This article will educate readers on a lease agreement, how it works, and what to include when creating one. The post will also discuss different lease agreement templates and laws to consider when preparing the agreement.
- Lease agreements are binding contracts between the tenant and landlord.
- All residential leases are ideally similar. However, there are different types of commercial leases.
- The agreement will typically have a validity period within which the tenant is entitled to use and occupy the property, and the landlord is entitled to a specified periodic payment.
- There are consequences of violating a lease. These consequences will contrast from case to case. They can be mild or severe.
- While ordinarily, both parties cannot terminate the lease before the expiry date, specific categories of people are exempt from this, provided they can offer proof to ascertain their qualification for the exemption.
Lease Agreement
A lease is an agreement between two parties that determines one party’s use of the real property for a specific amount of time in exchange for rent. An effective leasing agreement will ensure both parties know what to do to conduct their business without any problems arising. Any violation of the agreement’s provisions results in contractual liabilities such as penalties, termination, or litigation.
Alternative names
A lease agreement can be referred to as any of the following names:
- Lease form
- Rental agreement
- Rental contract
- Rental lease agreement
- Tenancy agreement
- Rent-to-own lease agreement
- Apartment lease
- House rental agreement
Important: Commercial leases vary from residential leases in complexity and structure. They are structured such that the lessee takes up more responsibility while guaranteeing the lessor receives greater profits upfront. For example, the lessee pays rent and covers the property’s operational costs or property taxes and insurance. These variations in structuring can lead to different types of leases for commercial real estate, including:
– Single-net leases: The lessee covers property taxes.
– Double-net leases: Lessee pays for property taxes and insurance.
– Triple-net leases: The tenant covers operational/maintenance costs, property taxes, and insurance.
-Gross leases: The lessee pays the rent while the lessor covers other property expenses.
Why and Who Needs a Rental Lease Agreement?
Lease agreement templates are documents anyone considers utilizing while renting a property. This is due to the advantages of having a written agreement between property owners and tenants.
Who
Leases will be used by different categories of people in real estate. So, an individual should consider using a lease agreement template if they fall into any of the following categories:
- Property owners seeking to rent their property
- Landlords/lessors who plan to rent their property for short or long-term
- Any category of tenants
- Property owners renting property to family or friends
- Tenants who intend to rent a property with an option to purchase the property later
- Property managers and tenant placement service providers
Why
A rental lease agreement is vital to the landlord and the tenant because it determines what is expected from each party and their respective rights and obligations. It ensures that both parties are legally protected from exploitation. Additionally, a written agreement is more enforceable by law than a verbal agreement because they are more credible and reliable reference source.
Some of the areas of contention in the absence of a written lease form include:
- Lease expiration date and renewal terms
- Terms of reimbursement of the security deposit after the end of the lease
- If and when a landlord can increase rent and by how much
- How much is the tenant expected to pay per payment period
- Eviction guidelines before the lease expire
Therefore, with a written lease, disputes and misunderstandings between the lessor and lessee are lowered.
How Does It Work?
The lessor is the property owner who rents out their property to another party for a specified period in exchange for rent and other terms and conditions. The lessee is the person renting the property from a lessor. Their primary responsibilities are to pay rent and respect their landlord’s property.
A lease agreement stipulates the terms and conditions and expectations from each party when renting real estate. Information that will be included in a standard residential lease is as follows:
- Rent amount
- Rent due date
- Lease term (duration)
While these details are standard, the agreement can include other information. This includes property location (address), lessor and lessee responsibilities, pet policies, consequences of breaching the contract, security deposit amount and terms, and other additional information. Commercial leases typically have a duration of 1-10 years but can be longer. Conversely, residential leases will often be standard for all tenants. The lease can be complex and more detailed depending on how it is negotiated between the lessor and lessee.
The lessee must sign the document to signify they agree to the terms of the contract for the lease to be enforceable. In addition, each party (lessor and lessee) should retain a copy of the lease agreement for reference in case of disputes.
Lease Vs. Rental Agreement
There are various similarities between a lease and rental agreements. In the eyes of the law, they are both legally binding contracts that define tenancy terms at a particular property and can thus be used interchangeably. The difference is in the duration of renting property. Rental agreements are ordinarily used to refer to agreements for a short-term rental period, typically 30 days. However, both agreements outline the arrangement between the lessor and lessee.
In addition, the lease agreement has its benefits and pitfalls, as discussed below:
Pros
- Lease agreements offer more stability and assurance of a steady income flow to the landlord as they typically rent the property for longer durations, often more than a year.
- With leases, landlords can lower turnover costs incurred when replacing tenants.
- Leases are suitable for securing tenancy for a long duration for tenants who want a stable long-term residence.
Cons
- Leases limit lessors from taking advantage of the increased property value with time as they cannot raise the rent amount until the agreement expires, which is often after a significant amount of time.
- A lease can be disadvantageous to a lessee as the rental amount remains constant even during tough economic times, as it cannot be revised until the lease expires.
A rental agreement has its pros and cons, as discussed below:
Pros
- Rental agreements offer flexibility regarding rent changes and termination as they are usually valid for a short duration.
- With rental agreements, landlords can keep up with fair market rent as long as they abide by rental laws that govern rent increases and notice requirements.
- A rental agreement is suitable for tenants who do not want to commit to a long-term lease, such as a 1-year lease.
- Rental agreements attract a vast pool of tenants seeking short-term rentals, for example, students.
Cons
- Rental agreements are known to repel tenants looking for long-term residence options.
- Rental agreements are too flexible, thus subjecting tenants to frequent rent increments and unpredictable arrangements with the landlord.
- In addition, landlords incur high tenant turnover costs on advertising, renovation, etc., when finding replacements for short-term tenants.
- This type of agreement may result in unpredictable income due to high tenant turnover, mainly if the property is located in a low occupancy rate region.
- It is challenging to retain tenants for long durations.
8 Steps Leasing Process
Renting a property can be an intricate process for both landlords and tenants. However, they can reach a mutually beneficial agreement within a few steps.
Below are the eight steps of leasing a property:
Tenant observes the space
Before leasing property, tenants should thoroughly study it to see if it suits their needs and purpose. They should also check the condition of the unit and bathroom and kitchen appliances for maintenance. Then, if deemed suitable, an offer on how much rent to be charged can be proposed.
Authorize the rental application
After the tenant has gained a clearer picture of the property, they may choose to apply for a rental agreement. A rental application form can provide information on tenants and landlords, such as names and contact details. The tenant then pays an application fee. The fee shouldn’t exceed the state’s limit. The application should also grant the lessor consent to undertake credit and background checks on the tenant legally.
The landlord runs the credit check
Once the application is accepted and the application fee is paid, the landlord can proceed with credit and background checks as applicable per state. This is mainly on monetary matters such as credit history and bankruptcy. Landlords should also check if the tenant has an eviction and criminal history; this will show in their background check report. In some states like New Jersey and Washington, landlords cannot reject tenants based on criminal history. A limited consumer report costs roughly $21, while a detailed report costs $40.
Landowner verifies references
The landlord will also want to verify that the tenant is qualified as a suitable lessee for their property and applicable lease terms. This includes verifying tenants’ references from employers, colleagues, and previous landlords listed in the application. Landlords can contact referees via phone with questions regarding the applicant’s character and other insightful details.
Approve the application
Once vetting is completed, the application can be approved. A lease agreement should then be drafted outlining all the terms and conditions agreed on by the two parties.
Signing of the lease
The landlord should give the lease agreement to the tenant for review. After verifying the contents of the agreement to be accurate, it should be signed by both parties. Once signed, the lease is legally binding. It can be signed in person or, if applicable, electronically if allowed by applicable laws.
Tenant occupies the space
Once both parties (lessor and lessee) sign the lease agreement, the tenant officially becomes a lessee. A security deposit, first month’s rent, and applicable fees should be provided to the lessor. The landlord is then expected to make certain disclosures, such as lead-based paint and a move-in checklist, as applicable by law. The tenant can then occupy the rented space. They are expected to move in on the first day of the lease term.
End of the lease
At the expiration/end of the lease term, the lessor has the option to renew or terminate the lease. If no renewal is reached, the tenant should move out, and the landlord is free to seek new tenants for long or short-term rental agreements as applicable. However, the security deposit should be refunded less any deductions acceptable within the jurisdiction.
Glossary of a Lease Agreement
When looking to enter into a lease, tenants should be aware of their rights and responsibilities as well as the landlord’s obligations. This is because lease agreement templates will likely cover various provisions and clauses to address different aspects of leasing commercial and residential properties.
Several essential items that determine the level of protection of a lease agreement tenants and landlords enjoy under different legal jurisdictions include:
Identify the parties
Like how contracts involve two parties, a lease agreement should identify both parties (landlord and tenant). This means that both parties should be named in the agreement.
Choose the lease type
The type of lease should be indicated. Most common forms include month-to-month, one-year (fixed) leases. The start and end date should be given for fixed leases, while month-to-month leases should have a start period.
Name the occupants
The agreement should indicate all the occupants living on the premises. This includes children, family members, roommates, etc.
Specify the property
The description of the property is necessary. The description includes the mailing address, unit number, residence type (apartment, condominium, etc.), and the number of bedrooms and bathrooms.
Purpose of the agreement
Lease agreements should indicate the purpose for which the rented premises are used. For example, it should be clear if it is a residential or commercial property.
Rent clauses
A lease agreement can include other terms and conditions of the tenancy. These will vary from case to case. Some of the clauses are as follows:
- The total cost to pay per month for the use of property or, in this case, the right to occupy that property for some time.
- Lease agreement templates indicate how non-sufficient funds (N.S.F.) checks should be handled. For example, if a fee is charged, the amount should be declared in the lease.
- In most cases, if a tenant misses the due date, they can pay a fine specified in the lease agreement.
- The agreement should clarify if the tenant is to pay the first month’s rent when signing the lease agreement or on the first day of the lease term. Both options should be offered on the lease for flexibility.
- If a security deposit is charged, the tenant should be informed. This amount should be specified in the agreement.
- In certain instances, both parties can agree for rent to be prepaid. If this is the case, the exact prepaid amount should be declared.
- Should the tenant opt to move in before the lease starts, this provision should be highlighted in the lease agreement template. This is known as the proration period.
Additional terms and conditions
The agreement template can include additional terms and conditions applicable to this specific circumstance as discussed below:
Furnishings
The list and type of furnishings on the premises should be specified in the agreement. Examples of furnishings include couches, beds, curtains, closets, etc.
Appliances
Some premises come with pre-installed appliances. The agreement template should list the appliances on the premises before moving in. Appliances include a fridge, microwave, washer, dryer, etc.
Move-in inspection
The tenant should be given the time to view and inspect the premises with a move-in inspection checklist before moving in. This allows the tenant to note defects such as broken windows, peeling paint, torn carpet, and leaking water system. In some states, the checklist is mandatory. In addition, the checklist protects the tenant’s security deposit from being wrongfully deducted after the lease ends.
Parking
It should be clearly stated if parking spaces are available on the premises. The parking space can be private or rented. If a parking fee is charged, it should be declared.
Utilities
The lease agreement should state how utility costs should be handled during the lease term. This clause specifies which party should pay for this cost. The utilities can be paid by either party or shared between the two.
Sale of property
The agreement should affirm what will happen if the property is sold. For example, this clause can indicate that the tenant will be notified in writing and will have to move out after the sale.
Early termination
The tenant should be given the option to end the tenancy early. This clause protects tenants from remaining obligated after financial losses due to reasons beyond their control. Landlords will often seek compensation, a fee equal to one month’s rent.
Smoking policy
A smoking policy can be added to the lease agreement template to govern smoking within the rented property. In some states like California, this clause is mandatory.
Pets
Some premises allow pets while others do not. The tenant should agree to the lease agreement’s terms and conditions for pet ownership. This clause should indicate the number of pets allowed, types, and other details like weight.
Notices
The lease agreement should highlight how notices should be issued. For example, all states require landlords to provide their addresses for notice purposes. Tenants should also provide their addresses even though it is not mandatory.
Waterbeds
If the premises allows or prohibits waterbeds, this should be specified in the agreement.
Agent/manager
The lease agreement should indicate the agent or manager’s name, phone number, email, etc. This is to ensure clarity and easy communication.
Lead paint
Federal law requires all rented buildings constructed before 1978; a lead-based paint disclosure should be included in the lease agreement. This is to protect the tenant from the hazardous effects of lead paint.
Free Templates
Lease Agreement Template
A lease agreement template is a great starting point for crafting your agreement. Below are some of the distinct types of lease agreements landlords and tenants can execute:
One (1) Page lease agreement
This is where the terms and conditions are clearly stated on a single page. These agreements are usually used for residential leasing and scenarios where the lease term is short (month-to-month or fixed term (12 months), and the responsibilities of both parties are simple.
Commercial lease agreement
Commercial lease agreements are used to rent premises to businesses. Examples of commercial purposes include office spaces, retail, industrial space, etc. Rent is determined by per square footage and additional triple-net (N.N.N.) expenses. Such leases will typically be 5-10 years, and landlords often offer options to renew at pre-determined rental rates.
Condominium (Condo) lease agreement
Condominium or condo lease agreements are used to rent a unit in a condo complex building. The lease agreement grants the tenant access to facilities like the swimming pool, parking lot, etc. In addition, the tenant is responsible for paying specific monthly fees like standard area maintenance (C.A.M.) in addition to their monthly rent.
Equipment lease agreement
Equipment lease agreements are used for renting machinery, vehicles, etc. The lease agreement includes all terms and conditions for the rented items.
Family member rental agreement
This is a lease agreement where a family member rents their property to another family member (e.g., cousin, aunt, brother, etc.). The agreement should highlight the conditions of occupancy and the responsibilities of both parties. The consequences of violating the contract should also be listed.
Hunting lease agreement
A hunting lease agreement is used for individuals looking for private land to use for hunting. The agreement gives the lessee right to trespass and hunt game within the property. In addition, the agreement specifies the number of hunters, type of wildlife to be hunted, price per hunter, hunting styles allowed, and limitations to the access.
Month-to-month (Tenancy at Will) lease agreement
Month-to-month lease agreements are used to rent premises with no fixed expiration date. As a result, the tenancy agreement remains in effect for 30 days and renews automatically unless it is terminated. Either party can end the agreement by serving a 30 days written notice.
Parking space lease agreement
This is a lease contract where private parking spaces are rented out to park automobiles. Such leases can be used for motor vehicles, recreational vehicles, motorcycles, etc. Applicable state laws should be observed. Such leases are typical in crowded cities.
Rent-to-own lease agreement
Rent-to-own lease agreements are used to rent a property to a tenant who will later purchase the same unit. The tenant has the option to buy by paying a specified price at a pre-determined future date. The rent is often collected as part of the purchase price. The agreement will stipulate the pre-negotiated purchase price.
Roommate (Room Rental) lease agreement
A roommate type of lease agreement is where a tenant rents out a bedroom in their residence to another. The roommates will be obligated to pay rent for occupying the premises. The agreement should also indicate the responsibilities and duties of each tenant/roommate and the consequences for violating the lease contract.
Standard lease (1-Year) lease agreement
Standard lease agreements have a term of one year. The length of the lease term can also be any other fixed duration.
Sublease (sublet) lease agreement
This is a lease arrangement where a tenant sublets (rents) part or all of their rented property to another party. Typically, subleases require the landlord’s consent and shouldn’t last longer than the original lease on the property.
Vacation lease agreement
Vacation lease agreements rent the property for a short period – typically 1-30 days. Examples of spaces rented using this ease include apartments, cabins, homes, condominiums, and other residences. Such leases are standard in high-end real estate.
Weekly lease agreement
Weekly lease agreements are used for seven days when rent payments are paid weekly. The agreement can be terminated with a week’s (7 days) notice.
Landlord-Tenant Laws
Landlord-tenant laws are enforced by local, county, and state government agencies. The rules are often complex and different from state to state, so consulting with a legal professional is recommended before initiating any lease agreement. Failure to comply with the jurisdiction’s laws renders the lease agreement unenforceable. However, using proper language in a lease agreement can prevent this from occurring and protect both parties.
These laws touch on the following aspects of leasing:
Security deposit law
The security deposit is money paid upfront by the tenant to guarantee that they will fulfill their obligations before and after the expiry of the lease. The security deposit can only be withheld if there is a breach of contract or unpaid rent charges.
The guidelines under which security deposit should be given and withheld vary by state as follows:
| States | Laws |
| Alabama | § 35-9A-201(a), 35-9A-201(b) |
| Alaska | § 34.03.070(a), § 34.03.070(g) |
| Arizona | § 33-1321 |
| Arkansas | § 18-16-304, § 18-16-305 |
| California | 1950.5 |
| Colorado | § 38-12-103 |
| Connecticut | § 47a-21 |
| Delaware | Title 25 § 5514 |
| Florida | § 83.49(3)(a) |
| Georgia | § 44-7-34 |
| Hawaii | § 521-44 |
| Idaho | § 6-321 |
| Illinois | 765 ILCS 710 |
| Indiana | § 32-31-3-12 |
| Iowa | § 562A.12 |
| Kansas | § 58-2550 |
| Kentucky | § 383.580(7) |
| Louisiana | Revised Statute 9:3251 |
| Maine | § 6032, § 6033 |
| Maryland | § 8–203 |
| Massachusetts | Chapter 186, Section 15B |
| Michigan | § 554.602, § 554.609 |
| Minnesota | § 504B.178 |
| Mississippi | § 89-8-21 |
| Missouri | § 535.300 |
| Montana | § 70-25-202 |
| Nebraska | § 76-1416 |
| Nevada | N.R.S. 118A.242 |
| New Hampshire | R.S.A. 540-A:6, R.S.A. 540-A:7 |
| New Jersey | § 46:8-21.2, § 46:8-21.1 |
| New Mexico | § 47-8-18 |
| New York | Emergency Tenant Protection Act 576/74(f), § 7-108 (e) |
| North Carolina | § 42-51, § 42-52 |
| North Dakota | § 47-16-07.1 |
| Ohio | § 5321.16 |
| Oklahoma | § 41-115(B) |
| Oregon | § 90.300 |
| Pennsylvania | § 250.511a, § 250.512 |
| Rhode Island | § 34-18-19 |
| South Carolina | § 27-40-410 |
| South Dakota | § 43-32-6.1, § 43-32-24 |
| Tennessee | § 66-28-301 |
| Texas | § 92.103 |
| Utah | § 57-17-3 |
| Vermont | § 4461 |
| Virginia | § 55.1-1226(A) |
| Washington | § 59.18.280 |
| West Virginia | § 37-6A-2 |
| Wisconsin | § 134.06 |
| Wyoming | § 1-21-1208(A) |
Landlord’s access
To protect their property, landlords will often require access to the property even after the tenant has moved in. Some states may require the landlord to have a valid reason for entry and provide the tenant with notification at least 24 hours or a specific period before entry.
However, these provisions vary based on the state’s landlord’s access laws, as discussed below:
| States | Laws |
| Alabama | § 35-9A-303 |
| Alaska | § 34.03.140 |
| Arizona | § 33-1343 |
| Arkansas | N/A |
| California | § 1954 |
| Colorado | *N/A |
| Connecticut | § 47a-16 |
| Delaware | Title 25 § 5509 |
| Florida | § 83.53 |
| Georgia | *N/A |
| Hawaii | § 521-53 |
| Idaho | *N/A |
| Illinois | *N/A |
| Indiana | § 32-31-5-6 |
| Iowa | § 562A.19 |
| Kansas | § 58-2557 |
| Kentucky | § 383.615 |
| Louisiana | *N/A |
| Maine | § 6025 |
| Maryland | *N/A |
| Massachusetts | Sanitary Code (410.810) |
| Michigan | *N/A |
| Minnesota | § 504B.211 |
| Mississippi | *N/A |
| Missouri | *N/A |
| Montana | § 70-24-312 |
| Nebraska | § 76-1423 |
| Nevada | N.R.S. 118A.330 |
| New Hampshire | R.S.A. 540-A:3 |
| New Jersey | § 5:10-5.1 |
| New Mexico | § 47-8-24 |
| New York | *N/A |
| North Carolina | *N/A |
| North Dakota | § 47-16-07.3 |
| Ohio | § 5321.04 |
| Oklahoma | § 41-128 |
| Oregon | § 90.322 |
| Pennsylvania | *N/A |
| Rhode Island | § 34-18-26 |
| South Carolina | § 27-40-530 |
| South Dakota | § 43-32-32 |
| Tennessee | § 66-28-403 |
| Texas | *N/A |
| Utah | § 57-22-4 |
| Vermont | § 4460 |
| Virginia | § 55.1-1229(A) |
| Washington | § 59.18.150 |
| West Virginia | *N/A |
| Wisconsin | § 704.05(2) |
| Wyoming | *N/A |
Rent due
The landlord and the tenant typically agree on when rent is due every pay period. They may agree to a grace period before rent is considered overdue before being charged a late fee or not. This decision should be based on the state’s rent due or grace period guidelines.
Each state will have varying grace period recommendations, as shown below:
| States | Laws |
| Alabama | § 35-9A-161(c) |
| Alaska | AS 34.03.020(c) |
| Arizona | A.R.S. 33-1314(c) |
| Arkansas | § 18-17-401(b)(1), § 18-17-701(b) |
| California | CIV Code 1947 |
| Colorado | No statute |
| Connecticut | § 47a-3a(a), § 47a-15a |
| Delaware | Title 25, § 5501(b), Title 25, § 5501(d) |
| Florida | § 83.46(1) |
| Georgia | No statute |
| Hawaii | § 521-21(b) |
| Idaho | No statute |
| Illinois | No statute |
| Indiana | No statute |
| Iowa | 562A.9(3) |
| Kansas | § 58-2545(c) |
| Kentucky | § 383.565(2) |
| Louisiana | La. Civ. Code art. 2703(1) |
| Maine | Chapter 710, §6028(1) |
| Maryland | § 8-401(a) |
| Massachusetts | Chapter 186, Section 15B(1)(c) |
| Michigan | § 554.131 |
| Minnesota | No statute |
| Mississippi | No statute |
| Missouri | Rev. § 535.060 |
| Montana | § 70-24-201(2)(c) |
| Nebraska | § 76-1414(3) |
| Nevada | N.R.S. 118A.210(1) |
| New Hampshire | No statute |
| New Jersey | § 2A:42-6.1(1) |
| New Mexico | § 47-8-15(B) |
| New York | Housing Stability and Tenant Protection act of 2019 |
| North Carolina | § 42-46(a) |
| North Dakota | No statute |
| Ohio | No statute |
| Oklahoma | § 41-109(B) |
| Oregon | § ORS 90.220(7)(a), ORS 90.260(1)(a) |
| Pennsylvania | No statute |
| Rhode Island | § 34-18-15(c) |
| South Carolina | § 27-40-310(c) |
| South Dakota | No statute |
| Tennessee | § 66-28-201(c), § 66-28-201(d) |
| Texas | No statute |
| Utah | No statute |
| Vermont | 9 V.S.A. § 4455 |
| Virginia | § 55.1-1204(C)(4), § 55.1-1204(C)(5) |
| Washington | RCW 59.18.170 |
| West Virginia | No statute |
| Wisconsin | No statute |
| Wyoming | No statute |
Late fees
Late fees are usually charged after rent has been delayed past the due date. Late fees are charged in addition to the rent owed. The maximum amount the lessor can charge as a late fee depends on the state’s guidelines.
| States | Laws |
| Alabama | No statute |
| Alaska | No statute |
| Arizona | A.R.S. 33-1368(B) |
| Arkansas | No statute |
| California | Orozco v. Casimiro, 121 Cal. App.4th Supp. 7 (2004), CIV Code 1962 |
| Colorado | No statute |
| Connecticut | No statute |
| Delaware | Title 25, § 5501(d) |
| Florida | No statute |
| Georgia | Ga. Code § 44-7-16 |
| Hawaii | § 521-21(f) |
| Idaho | No statute |
| Illinois | No statute 5-12-140(h) |
| Indiana | No statute |
| Iowa | 562A.9(4) |
| Kansas | No statute |
| Kentucky | No statute |
| Louisiana | No statute |
| Maine | Chapter 710, §6028(2) |
| Maryland | Md. Code, Real. Prop. § 8-208(d)(3) |
| Massachusetts | No statute |
| Michigan | No statute |
| Minnesota | 504B.177(a) |
| Mississippi | No statute |
| Missouri | No statute |
| Montana | No statute |
| Nebraska | No statute |
| Nevada | N.R.S. 118A.210(4)(a) |
| New Hampshire | No statute |
| New Jersey | No statute Ord. 20-036 |
| New Mexico | § 47-8-15(B) |
| New York | Housing Stability and Tenant Protection act of 2019 |
| North Carolina | § 42-46(a)(1) |
| North Dakota | No statute |
| Ohio | No statute |
| Oklahoma | No statute |
| Oregon | ORS 90.260(2)(c) |
| Pennsylvania | No statute |
| Rhode Island | No statute |
| South Carolina | No statute |
| South Dakota | No statute |
| Tennessee | § 66-28-201(d) |
| Texas | Sec. 92.019(1) |
| Utah | No statute |
| Vermont | No statute |
| Virginia | § 55.1-1204(E) |
| Washington | No statute |
| West Virginia | No statute |
| Wisconsin | No statute |
| Wyoming | No statute |
Frequently Asked Questions
What benefits do lease agreements provide to landlords and tenants?
Leases give the landlord and tenant a certain level of predictability for their contractual obligations. A lease lays out the arrangement between the two parties in writing. This way, everyone comprehends what is expected of them, for example, rent and lease terms. The lease agreement also ensures each party is aware of the consequences of violating the agreed-upon terms before the lease commences.
Can you break a lease agreement?
Yes. Lease agreements can be broken before the expiration date, but there are consequences. For example, if tenants break the lease, they may be liable to pay an early termination fee or rent for the remaining lease term period. Also, if a landlord breaks a lease agreement, they may have to provide the tenant with another living space or face legal action. Due to the implications of terminating a lease, it is best to consult the other party and find a mutually agreeable solution. However, specific categories of tenants are exempt from consequences. They include victims of domestic violence and military personnel.
Do I need a lease agreement to rent a room in my house?
Yes. Creating a roommate residential agreement is advisable if you share your living space with another individual. The agreement allows you to create a structure of the arrangement and outline each party’s expectations, boundaries, and responsibilities. This way, disputes can be avoided or resolved amicably if they occur.
Is a lease agreement legally binding?
Similar to many legal contracts, a lease is legally binding ONLY if both parties sign the document. In addition, some states may have additional laws and regulations that must be complied with for the lease to be legally enforceable.
What cannot be incorporated into a lease agreement?
Specific provisions in a lease agreement may be considered illegal. For example, denying a person their rights based on race, gender, or religion is illegal. In addition, states will typically dictate what cannot be included in lease agreements. Other details commonly avoided in leases are age and family size limitations unless the property is a seniors-only building.
How much does it cost for an attorney to prepare a lease agreement?
The price of hiring an attorney to draft a lease agreement depends on the lawyer’s experience and the complexity of the agreement. Generally, experienced attorneys will charge a higher fee for their services than those with less experience. Ordinarily, a lease agreement can range from $200 to $300. Also, if the lease agreement is more complex, more time and effort must be invested in drafting it, and thus the higher the lawyer costs.