Important Lease Agreement Terms & Phrases

Property Details - This section denotes all major information about the property in question. This includes address, general description, as well as a legal description (sketch or survey)

Landlord Information - This includes contact information for the landlord or Lessor. Typically, this involves at least a full name, address, and phone number.

Tenant Information - This section provides the names of all tenants. On a standard lease agreement, a maximum of three tenants may be listed but may vary depending on the property.

Terms of Residential Lease - This component embodies all particulars of the rental contract itself. This means the amount of rent due each period, the beginning and ending dates of the lease, the date the lease is signed, and the address to which lease payments must be sent. It also covers policies such as late payment and returned check penalties, subletting rules, and security deposit information.

Rights Responsibilities & Liabilities of the Landlord - The details of this section vary from lease to lease, but typically cover issues such as tax, repairs/maintenance, utilities, insurance, liability, and provision of furnishings.

Rights, Responsibilities & Liabilities of the Tenant - This section covers rights such as pets, guests, and peace, as well as responsibilities such as repairs/maintenance and utilities.

Damages & Insurance - This component deals with damages to the property - who is liable for what.

Keys - This portion details the number of keys distributed and the consequences of a tenant being locked out or losing his or her key.

Termination of Lease - This covers all aspects of lease termination. These include when a Lessor can terminate a lease when a Lessee can terminate a lease, and how much notice must be given for both.

Lease Renewal - This section details when and how the lease may be renewed. It specifies whether or not the lease will be automatically renewed, and how long in advance the landlord must provide renewal documents.

Property Condition - This covers the results of the property inspection. These include general condition, wear and tear, and details that affect living conditions. These include: whether the property was built before 1978; whether any lead-based paint has been found on site; whether the property has flooded in the last three years.

State-by-State Security Deposit & Landlord Access Laws & Regulations

Common Disclosures & Additions to Lease Agreements

Assignment of Lease – This document and process work to transfer or assign all rights and property that a tenant possesses to another individual. This document is often used when a tenant wants to get out of a lease that has not yet expired. Rather than abandoning the lease and paying costly fees, this document and process transfer their rights to another individual who would then take over the lease and resume rent payments.

Eviction Forms – Also known as a “Notice to Quit”, this is a notice given by a landlord to order a tenant to vacate the property by a certain date. Each state has a varying minimum notification period as to how much time must be given to the tenant before the eviction becomes effective. This minimum notice is generally 30 days but varies depending on the type of tenancy and state laws.

Lead-Based Paint Disclosure – A Lead-Based Paint Disclosure Form is a document required by federal law that must be issued to all tenants and potential buyers of residences built before 1978. Due to the hazard that lead-based paint possesses when it chips, the U.S Consumer Product and Safety Commission outlawed its use. Unfortunately, the paint may still be present in some residences built before 1978, and this disclosure notifies potential residences and tenants of its presence.

Move-in / Move-out Inspection Checklist – This checklist is a document given to a tenant by a landlord. Required by law in some states, this document helps the landlord keep track of the condition of his or her property by having both the tenant and landlord do a walk-through of the apartment or rental to ensure the good condition of the various components of the living space. This document is also used as a reference guide to spotting any damage to the unit once the tenant moves out.

Notice to Enter – Given to tenants usually 24 to 48 hours in advance, this document notifies tenants that the landlord or hired contractor must enter their apartment for a specific reason. These reasons range from inspections to maintenance and repairs.

Personal Guarantee (Guaranty) – This document is a personal guarantee or written promise that assures a business or lender that an individual will pay their obligations. These promises are unsecured and often attested by a co-signer.

Rent Receipt – A rent receipt is a document that records rent payments that a tenant pays to the landlord. This document generally records the amount of rent paid, the date, as well as pertinent information such as the tenant’s name, and unit number.

Rent Increase Letter – This document is a form used by landlords to notify tenants that their rent will increase and the new rate will become effective on a certain date. This notice must be given according to state laws but is generally given at least 30 days in advance.

Security Deposit Receipt – This document is a receipt that records the security deposit amount that the landlord collects at the beginning of a rental term. This record will keep track of the amount paid to the landlord, and how much the landlord will hold until the tenant moves out. Any deductions for damages or unpaid rent will be deducted from this deposit when the tenant moves out.

Security Deposit Return Letter – Once the lease term is over and the tenant moves out, the landlord will return whatever portion is left from the tenant’s security deposit. This letter documents the fact that the landlord is returning the deposit, in addition to itemizing whatever deductions have been taken from the deposit for damages or cleaning fees, or any interest that has been added to it. This letter and deposit must be returned within a certain period as required by state law.

Tenant Rejection Letter – This letter is a notice to a rental applicant that works to inform them that their tenancy application has been rejected. Oftentimes this rejection is because of a lack of creditworthiness, or insufficient income. It is important to note that according to Federal Fair Housing laws, a landlord may not reject a tenant based on discriminatory factors. These factors include age, sex, race, weight, color, creed, nationality, religion, sexual orientation, and more.

A Sample Lease Agreement with Examples for Each Step

Step 1 - Landlord and Tenant Information:

In this first section, enter the date that the lease is signed. Additionally, include the name of the landlord as well as the name of the tenant. If there will be a secondary tenant or a third tenant, input their names in the appropriate spaces.

Step 2 - Property Description:

Include the legal property description or sketch of the property. It is important to note that the legal description or sketch is different from the physical address.

Step 3 - Rent Due Dates:

Provide the specific day of each month that the rent is due. Additionally, provide the number of days after the rent is due that a late fee will be charged.

Step 4 - Payment Information:

Provide the address to where the lease payments are to be sent each month. This should be the full address, including the city, state, and zip code. Additionally, include the fee amount.

Step 5 - Insurance:

Specify which type of insurance the tenant must carry to remain in good standing with the landlord. This section will explain to the renter that he or she must carry some form of insurance (as described below) and will detail which kind.

Step 6 - Disclosures:

In this section, indicate whether or not the property was built before or after 1978. If the property was built before 1978, be sure that you include a disclosure that notifies them that the property may contain lead-based paint.

Indicate whether or not there is lead-based paint on the property based on inspection.

Also, include an asbestos disclosure.

Step 7 - Pets:

Indicate whether or not pets are allowed on the property. If so, indicate the number of pets allowed, and which kind. State how much the deposit is to house pets in the apartment.

Step 8 - Notices:

This section provides both the tenant and the lessee an official address of where notices are to be sent. First, input the name of the landlord, followed by his or her full address (including city, state, and zip code). Next, provide the official address where notices are to be sent/delivered.

For the lessee, input his or her name, followed by the name of any secondary or third tenant. Next, input his or her address that notices will be sent. This address is to include the city, state, and zip code.

Step 9 - Signatures:

For the required signatures, input the date that the landlord is signing the lease, followed by his or her name. Finally, the landlord must sign on the line.

The tenant will do the same thing. Underneath the landlord’s information, the tenant will write the date that the lease is being signed, followed by his or her name and signature.

*If the lease is being signed in the state of Washington, including the state property number.