It’s easy to find free online templates to create a simple lease agreement. And for many property owners who manage their own rentals, the idea is tempting. After all, most people don’t enjoy reading through lengthy legal documents — let alone writing one from scratch. If most leases seem standard, why not just download and go?
Before you take that route, remember that a lease is a legally binding contract designed to protect you and your property. A basic template may not address everything it should, and overlooking important details can lead to serious problems later on. It’s always best to consult a local legal professional or a trusted site such as https://www.ezlandlordforms.com before finalizing any agreement.
Whether you plan to write the agreement yourself or use a template as a starting point, here are seven essential clauses and disclosures that should always be included in a lease or rental agreement.
1. Occupancy Details and Conditions
Only the individuals listed on the lease agreement are legally responsible for paying rent and following the terms. That’s why every adult living in the property should be named in the document — whether they’re a partner, roommate, or another household member. Make sure to include a clause that clearly states only the listed tenants and their children may live in the property.
You should also include a rule prohibiting subletting or allowing unauthorized occupants. This is especially important to prevent the property from being used on short-term rental platforms or in other ways that might violate your insurance policy or local laws.
2. Payment Terms for Rent and Security Deposit
Your lease should clearly state the agreed rental price and security deposit, but that’s only the beginning. To avoid confusion or disputes, it’s important to outline specific payment terms, including:
- The due date and frequency of rent payments
- Accepted payment methods
- What happens if rent is late (including any applicable late fees)
- What happens if a payment fails or a check bounces
- The amount and handling of the security deposit
- Whether interest will apply to the deposit, based on local laws
- The conditions for returning the security deposit
- Any nonrefundable fees
Each state has different laws regarding rent and deposits, so it’s crucial to understand your local regulations. For example, some states limit how much security deposit you can collect, while others require installment options if the deposit exceeds a certain amount. There’s no universal rule, so research your local laws carefully.
3. Policies on Proper Use of the Property
Your expectations for how the property should be used must be clearly stated in the lease. This prevents misunderstandings and potential damage later on.
For instance, if the property only includes one parking space, write that down — don’t assume tenants won’t park on the lawn or store an RV on the property. A standard template won’t include these kinds of details, so be sure to include specifics such as:
- Maintenance responsibilities and how to report repairs
- Rules for parking on the property
- Storage limitations (no hazardous materials or items belonging to others)
- Responsibility for utilities and services
- Smoke and carbon monoxide detector usage and maintenance
- Garden care and watering requirements
- Smoking and vaping policies
- Rules regarding drug use or cultivation
- Procedures for requesting alterations (like painting)
- Local noise restrictions
- Penalties for early termination of the lease
- Pest control responsibilities and related costs
- Move-out requirements, including key return and cleaning
4. Statutory Disclosures for Your Location
Depending on your property’s location, you may be legally required to include certain disclosures in the lease. For example, some states require the following:
- A notice about public safety databases
- Disclosure of any known mold or ventilation issues
- A lead-based paint warning and related disclosures (for older properties)
- Disclosure of any chemical hazards
- Notice of any contamination from substances
- Bed bug information and reporting requirements
- Flood hazard information, if applicable
- Compliance instructions for smoke and carbon monoxide detectors
- Rent control or rent cap information
Research your local laws carefully to ensure your lease complies with all disclosure requirements.
5. Insurance Requirements
Even if you have property insurance, it won’t cover your tenants’ personal belongings or protect them against certain liabilities. That’s why your lease should make it clear that tenants are responsible for obtaining their own renter’s insurance. This coverage will protect them and provide additional protection for you as the property owner.
It’s a good idea to require proof of insurance before move-in and at every renewal period. This ensures everyone is covered and reduces the risk of disputes if unexpected damage or accidents occur.
6. Pet Policy
If you choose to allow pets in your rental, it’s essential to include a pet policy or addendum in the lease. This section should specify exactly which pets are permitted. Keeping unapproved animals in the property would be considered a lease violation.
Your pet clause should include:
- Approved pets by type and breed
- Whether an additional deposit is required and how much
- Which damages can be deducted from the deposit
- The tenant’s responsibilities for pet care and damage prevention
- Tenant responsibility for repairing pet-related damage
- Requirements for pest control upon move-out (e.g., flea treatment)
7. Rights to Enter the Property
Landlords are legally allowed to enter a rental property under certain circumstances, such as for repairs, maintenance, or inspections — but they must follow specific notice requirements. These rules vary by state, so it’s important to include them in your lease. Clearly stating the notice period and entry conditions will help avoid disputes or claims of illegal entry.
Conclusion
Creating a lease agreement is more than just filling in names and rental amounts. It’s about protecting your property, your rights, and your peace of mind. A well-drafted lease can prevent misunderstandings, reduce legal risks, and set clear expectations from the very beginning of the tenancy.
By including these essential clauses, you ensure that both you and your tenants understand your rights and responsibilities. It’s always worth taking the time — and seeking professional advice — to make sure your lease is legally sound and tailored to your specific property. Doing so helps you avoid costly mistakes and builds a more professional and respectful rental relationship.
Ultimately, a strong lease agreement is the foundation of a successful rental experience. With clear terms, thoughtful clauses, and proper legal guidance, you’ll create a safer and smoother process for everyone involved.