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Lease Assignment Agreement

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A Lease Assignment Agreement is a short document that allows for the transfer of interest in a residential or commercial lease from one tenant to another. In other words, a Lease Assignment Agreement is used when the original tenant wants to get out of a lease and has someone lined up to take their place.

Within a Lease Assignment Agreement, there is not that much information included, except the basics: names and identifying information of the parties, assignment start date, name of landlord, etc. The reason these documents are not more robust is because the original lease is incorporated by reference , all the time. What this means is that all of the terms in the original lease are deemed to be included in the Lease Assignment Agreement.

A Lease Assignment Agreement is different than a Sublease Agreement because the entirety of the lease interest is being transferred in an assignment. With a sublease, the original tenant is still liable for everything, and the sublease may be made for less than the entire property interest. A Lease Assignment transfers the whole interest and puts the new tenant in place of the old one.

The one major thing to be aware of with a Lease Assignment Agreement is that in most situations, the lease will require a landlord's explicit consent for an assignment. The parties should, therefore, be sure the landlord agrees to an assignment before filling out this document.

How to use this document

This Lease Assignment Agreement will help set forth all the required facts and obligations for a valid lease assignment . This essentially means one party (called the Assignor ) will be transferring their rights and obligations as a tenant (including paying rent and living in the space) to another party (called the Assignee ).

In this document, basic information is listed , such as old and new tenant names, the landlord's name, the address of the property, the dates of the lease, and the date of the assignment.

Information about whether or not the Assignor will still be liable in case the Assignee doesn't fulfill the required obligations is also included.

Applicable law

Lease Agreements in the United States are generally subject to the laws of the individual state and therefore, so are Lease Assignment Agreements.

The Environmental Protection Agency governs the disclosure of lead-based paint warnings in all rentals in the States. If a lead-based paint disclosure has not been included in the lease, it must be included in the assignment. Distinct from that, however, required disclosures and lease terms will be based on the laws of the state, and sometimes county, where the property is located.

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A guide to help you: Tenants and Subtenants Obligations under a Sublease Agreement

Other names for the document:

Assignment Agreement for Commercial Lease, Assignment of Commercial Lease, Assignment of Lease, Assignment of Residential Lease, Assignment Agreement for Lease

Country: United States

Housing and Real Estate - Other downloadable templates of legal documents

• Security Deposit Return Letter
• Rent Payment Plan Letter
• Residential Lease Agreement
• Sublease Agreement
• Tenant Maintenance Request Letter
• Rent Receipt
• Late Rent Notice
• Notice of Intent to Vacate
• Roommate Agreement
• Quitclaim Deed
• Parking Space Lease Agreement
• Short-Term Lease Agreement
• Tenant Security Deposit Return Request
• Termination of Tenancy Letter
• Change of Rent Notice
• Complaint Letter to Landlord
• Lease Amendment Agreement
• Notice of Lease Violation
• Consent to Sublease
• Eviction Notice
• Other downloadable templates of legal documents

Assignment of Lease

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What is an assignment of lease.

The assignment of lease is a title document that transfers all rights possessed by a lessee or tenant to a property to another party. The assignee takes the assignor’s place in the landlord-tenant relationship.

You can view an example of a lease assignment here .

How Lease Assignment Works

In cases where a tenant wants to or needs to get out of their lease before it expires, lease assignment provides a legal option to assign or transfer rights of the lease to someone else. For instance, if in a commercial lease a business leases a place for 12 months but the business moves or shuts down after 10 months, the person can transfer the lease to someone else through an assignment of the lease. In this case, they will not have to pay rent for the last two months as the new assigned tenant will be responsible for that.

However, before the original tenant can be released of any responsibilities associated with the lease, other requirements need to be satisfied. The landlord needs to consent to the lease transfer through a “License to Assign” document. It is crucial to complete this document before moving on to the assignment of lease as the landlord may refuse to approve the assignment.

Difference Between Assignment of Lease and Subletting

A transfer of the remaining interest in a lease, also known as assignment, is possible when implied rights to assign exist. Some leases do not allow assignment or sharing of possessions or property under a lease. An assignment ensures the complete transfer of the rights to the property from one tenant to another.

The assignor is no longer responsible for rent or utilities and other costs that they might have had under the lease. Here, the assignee becomes the tenant and takes over all responsibilities such as rent. However, unless the assignee is released of all liabilities by the landlord, they remain responsible if the new tenant defaults.

A sublease is a new lease agreement between the tenant (or the sublessor) and a third-party (or the sublessee) for a portion of the lease. The original lease agreement between the landlord and the sublessor (or original tenant) still remains in place. The original tenant still remains responsible for all duties set under the lease.

Here are some key differences between subletting and assigning a lease:

• Under a sublease, the original lease agreement still remains in place.
• The original tenant retains all responsibilities under a sublease agreement.
• A sublease can be for less than all of the property, such as for a room, general area, portion of the leased premises, etc.
• Subleasing can be for a portion of the lease term. For instance, a tenant can sublease the property for a month and then retain it after the third-party completes their month-long sublet.
• Since the sublease agreement is between the tenant and the third-party, rent is often negotiable, based on the term of the sublease and other circumstances.
• The third-party in a sublease agreement does not have a direct relationship with the landlord.
• The subtenant will need to seek consent of both the tenant and the landlord to make any repairs or changes to the property during their sublease.

Here is more on an assignment of lease here .

Parties Involved in Lease Assignment

There are three parties involved in a lease assignment – the landlord or owner of the property, the assignor and the assignee. The original lease agreement is between the landlord and the tenant, or the assignor. The lease agreement outlines the duties and responsibilities of both parties when it comes to renting the property. Now, when the tenant decides to assign the lease to a third-party, the third-party is known as the assignee. The assignee takes on the responsibilities laid under the original lease agreement between the assignor and the landlord. The landlord must consent to the assignment of the lease prior to the assignment.

For example, Jake is renting a commercial property for his business from Paul for two years beginning January 2013 up until January 2015. In January 2014, Jake suffers a financial crisis and has to close down his business to move to a different city. Jake doesn’t want to continue paying rent on the property as he will not be using it for a year left of the lease. Jake’s friend, John would soon be turning his digital business into a brick-and-mortar store. John has been looking for a space to kick start his venture. Jake can assign his space for the rest of the lease term to John through an assignment of lease. Jake will need to seek the approval of his landlord and then begin the assignment process. Here, Jake will be the assignor who transfers all his lease related duties and responsibilities to John, who will be the assignee.

You can read more on lease agreements here .

Image via Pexels by RODNAE

Assignment of Lease From Seller to Buyer

In case of a residential property, a landlord can assign his leases to the new buyer of the building. The landlord will assign the right to collect rent to the buyer. This will allow the buyer to collect any and all rent from existing tenants in that property. This assignment can also include the assignment of security deposits, if the parties agree to it. This type of assignment provides protection to the buyer so they can collect rent on the property.

The assignment of a lease from the seller to a buyer also requires that all tenants are made aware of the sale of the property. The buyer-seller should give proper notice to the tenants along with a notice of assignment of lease signed by both the buyer and the seller. Tenants should also be informed about the contact information of the new landlord and the payment methods to be used to pay rent to the new landlord.

You can read more on buyer-seller lease assignments here .

Get Help with an Assignment of Lease

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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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Residential Lease Agreement

Last Updated: October 17, 2023 by Roberto Valenzuela

A standard residential lease agreement (or “rental agreement”) is a contract for a tenant to use a landlord’s residential property in exchange for paying rent. A rental agreement must include specific details such as the periodic rent and the responsibilities of each party.

Residential Lease Agreements by State

Types of residential lease agreements.

A rental agreement allows a tenant to live in a residential property in exchange for a rent payment to the landlord. There are many different kinds of rental agreements, suited to different tenant needs and rental situations.

• Standard/Fixed Term – The most common lease agreement is a fixed term agreement. This is a lease for a specific, often extended period of time such as one year. Rent payments come due every month in most fixed term leases. A fixed term lease can be as simple as one page, or detailed and complicated as desired by the parties.
• Month-to-Month – A rental agreement which typically lasts for 30 days, renewing automatically at the end of each month unless the landlord or tenant provide a certain amount of advance notice.
• Sublease – This is where a tenant on an existing lease rents some or all of their rental property to a new, third-party tenant. Landlords usually have a strong preference for a direct business relationship with the person occupying their property, so subleases are often forbidden without the landlord’s prior written permission.
• Roommate – A roommate agreement is not a rental in the strict sense since it doesn’t add a tenant to the lease. The original tenant stays legally liable to the landlord for things like a default on rent. A roommate agreement is a contract between a tenant and a roommate, to arrange division of responsibilities like chores, rent, and utility payments.
• Short-Term (Vacation) – A short term tenancy that typically lasts a few days. May include more responsibilities than typical for a simple overnight rental like a hotel.
• Land Lease – A lease where the tenant owns and operates the residence, but the landlord owns the plot of land underneath. Sometimes also called a ground lease.
• Rent To Own – An agreement where the tenant pays a fee to get the option of purchasing the rental property at the end of the lease. Most rent-to-own agreements credit a portion of the monthly rent to equity in the property if the tenant exercises the purchase option.

Residential Lease Agreement Basics

A residential lease lays out the basic rights and terms that the landlord and tenant agree will govern the occupation of the rental property.

What is the difference between a lease and a rental agreement?

All leases are rental agreements, but not all rental agreements are leases. “Lease” is a term that refers specifically to fixed-term rental agreements.

• Rental Agreement – creates a tenancy for a  period of time in exchange for rent. Most residential contracts specifically called “rental agreements” are typically for a month or a 30-day period. Such month-to-month agreements renew automatically in most cases unless either party provides advance notice to end the agreement. Since the entire agreement renews monthly, landlords have a lot of power to change terms from one payment period to the next.
• Lease – creates a tenancy for an extended period of time, generally 1-2 years. Leases have advantages for both landlords and tenants. A lease guarantees an extended period of paid occupancy, which is good for landlords. It also provides stable, predictable terms for things like rent, which is good for tenants.

Can a tenant rent without a written lease?

Most states do allow rentals based on oral agreements, but this is legally risky. Terms of an oral lease can be difficult to prove in court when there’s conflicting testimony. In addition, many states require written leases by law for any rental contracts of one year or longer. Landlords on an oral lease may also have serious limitations on things like the amount of security deposit they can legally collect.

Can parties draft their own rental agreements themselves?

Every state lets a landlord and tenant write their own rental agreement according to their preferred terms. However, ignorance of the law is not an excuse; required and prohibited rental terms remain the same , no matter who drafts the agreement. For maximum safety, a rental agreement must use a professionally drafted template and also receive a specialized attorney review before execution.

Typical Lease Terms

A lease agreement or rental agreement outlines the basic rules and terms to which both the landlord and tenant agree. These are examples of important information to include in every lease or rental agreement.

• Names of Tenants/Landlords – Tames of all tenants, plus the landlord and/or the landlord’s agent authorized to manage the rental property.
• Means of Contact – Smooth and clear communication is the most effective way to reduce conflicts in rental situations. In addition to an address of record for written notice and rent payments, it’s important for a rental agreement to specify any acceptable alternative means of contact, like text or email.
• Occupancy Limits – Most residential property has a legal occupancy limit. Landlords can also limit occupancy on rentals however they choose, but this must be specified in the rental agreement.
• Type of Tenancy – To avoid an unfavorable interpretation over lack of clarity, a rental agreement must clearly state what type of tenancy it intends to create (month-to-month, fixed-term, etc.), including start and end dates.
• Payment of Rent – Details  acceptable payment methods (check, online card payment, etc.), the amount owed, and the due date. Any  late fees or charges for returned checks must also be detailed in the lease terms.
• Deposits and Fees – The specific terms of any security deposit (amount, allowed deductions, return, etc.) must be detailed, in compliance with local and state laws. Any non-refundable fees like pet or cleaning fees must be clearly disclosed, as well.
• Repairs and Maintenance – Any rental agreement should clearly describe the different responsibilities landlord and tenant have when it comes to maintaining the rental property. This includes both occasional repairs as well as regular maintenance like cleaning the property or changing smoke detector batteries. Note that a landlord’s repair responsibilities are often determined by state law .
• Landlord’s Access To the Property – Landlords have not only the right, but the responsibility to enter rental property for required legal purposes like making necessary repairs. Many states lack comprehensive access laws , so specifying a landlord’s entry rights in the rental agreement is especially important.
• Rules and Policies – Any landlord-enforced rules, regulations, and policies (e.g., smoking restrictions, pet rules, etc.) must be outlined or clearly referenced in the rental agreement. This helps limit a landlord’s liability.
• Disclosures – Depending on the location and specific rental situation, state or federal law may require various disclosures from the landlord to the tenant.

Required Disclosures and Addendums

Required disclosures and addendums vary by state and rental situation. These are the most common required disclosures.

• Lead-Based Paint – Federal law requires notice regarding the risks of lead-based paint in homes built prior to 1978. This requires a specific disclosure form and pamphlet in addition to notice of any known hazards in the building.
• Asbestos – For properties built before 1981, federal law requires notice of any asbestos on the property so that tenants can take appropriate precautions.
• Bed Bugs – Several states require disclosures regarding detection and treatment of bed bug infestations. This type of disclosure is also recommended for rental units with a history of infestation, for liability purposes, even where not required by state law.
• Landlord’s Name and Address – Some states make landlords and their agents provide tenants with a specific contact name, and address of record, for things like notices and rent payments.
• Mold Disclosure – Some states have specific requirements for disclosing mold issues and treatment.
• Shared Utilities Arrangements – When rental units share utilities, there may be statutory requirements for transparency on the specifics of how they are shared, and how each party’s bill is calculated.
• Move-In Checklist – To retain a security deposit, a number of states require that the landlord provide an  inspection with an itemized list of property features. This clarifies the condition of the property upon move-in, so that it’s obvious what the tenant has to pay for at the end of the lease term.
• Refundable/Non-Refundable Fees – Non-refundable fees generally must be disclosed as such in the lease. Tenants can otherwise often demand a refund at the end of the lease.
• Smoking – Depending on a property’s situation and local laws, there may be limitations which must be respected on what a smoking policy can allow or prohibit. In particular, states which have medical marijuana programs may have special regulations on residential use policies.
• Late and Returned Check Fees – Many states limit fees a landlord can charge for late payments or bounced checks. Such fees must usually also be disclosed in the lease to be valid.

Illegal Terms in a Rental Agreement

While state contract laws give wide leeway for landlords and tenants to set their own rental terms and conditions, potentially abusive provisions aren’t allowed. A landlord who includes prohibited terms in a lease might be subject to a lawsuit, or even criminal penalties in some extreme cases.

These are some examples of lease terms which often are illegal.

• Warranty of Habitability – Every state has minimum quality standards for housing , usually called a “warranty of habitability.” Landlords have a legal obligation to repair rental property up to these minimum standards. It’s illegal to try and waive a warranty of habitability. Note that in most cases, landlords don’t have to repair damage tenants themselves caused negligently or deliberately.
• Charging Penalties Instead of Fees – Late fees and other nonrefundable fees must be outlined in the lease or rental agreement. Fees in the lease cannot be designed as a punishment; they must reasonably reflect the actual costs related to an inconvenience.
• Security Deposit – The most common type of rental dispute is a disagreement over deductions from the security deposit. Many states regulate the terms under which a landlord can keep part of the security deposit. In general, tenants cannot be charged for damage they did not cause, costs the landlord did not incur, or normal wear and tear of the property.

How to Fill Out a Residential Lease Agreement

Below is a step-by-step process on how to fill out a lease agreement.

Section I. The Parties

• Date – The date of signature for the agreement.
• Landlord’s Contact Information – The landlord’s name and address.
• Tenant’s Names  – State the tenant(s) full name(s).

Section II. Location of the Premises

• Tenant’s Names – The full names of any and all tenants responsible for the lease.

Section III. Lease Term

• Lease Term – A clear statement of when the lease begins and ends.
• Termination Notice – Include the notice period required before terminating a month-to-month tenancy created after the lease ends.

Section IV. Rent

• Monthly Rent Due – The price of rent due per month.
• When Rent is Due – The date rent is due (typically, the first day of each month).
• Late Fees and Grace Periods – Most states allow a late fee if rent is not paid on time. If there is a late fee, enter the fee details plus when rent is considered late.
• Returned Checks – A fee for a bounced check with non-sufficient funds (NSF). If there is a fee, enter the amount per bounced check. Note that many states set a maximum cap on returned check fees.
• Rent Increase – The effective date of any rent increase.

Section V. Security Deposit

• Security Deposit – Most leases collect a security deposit, generally equal to one month’s rent. Each state’s security deposit law indicates what a landlord can use the money for and the maximum allowed amount.

Section VI. Use of Property

• Occupants – All tenants who are allowed to occupy the property (not including temporary guest stays). This section lists anyone living on the rental property for an extended period, including children.

Section VII. Subletting

• Assignment – A check in the appropriate box allows or denies permission for the tenant to sublet the rental property. Note the specific amount of advance notice to which a landlord is entitled when getting details about an upcoming subtenant.

Section VIII. Right of Entry

• Landlord Access – While state laws regarding landlord access vary widely, in general landlords can enter rental property for relevant purposes during normal business hours. In most cases, they must provide advance notice before a non-emergency entry, typically 24 hours.

Section IX. Non-Delivery of Possession

• Non-Delivery of Possession – Provides a time limit within which the landlord must deliver initial possession of the rental property to the tenant. This protects the tenant’s rights in case there’s an issue like the previous tenant refusing to move out. This limitation on the start date of lease may be required under some state or local laws.

Section X. Utilities

• Utilities – Indicates which utilities and services the landlord will provide to the tenants. Any utility or service not mentioned in the lease is, by default, the tenant’s responsibility.

Section XI. Pets

• Pets – Indicates whether pets are allowed in the rental unit, and relevant restrictions on things like breed or weight. Any nonrefundable pet fees must be disclosed here. Landlords cannot charge any fees for lawful support and service animals, but can require proper documentation before admitting them to a rental property.

Section XII. Default

• Default – Provides terms for ending the lease, including the amount of advance notice before termination or a formal default on rent payment. Note that these notice periods may be fixed by state or local law.

Section XIII. Notice

• Notice – Landlords must make themselves easy to contact for things like rent payment and repair requests. This field provides an address of record for streamlined contact between the landlord and tenant.

Section XIV. Parking

• Parking – Indicates whether the tenant receives a parking space as part of the lease as well as location and the terms on which the space is provided.

Section XV. Early Termination

• Early Termination – Indicates whether the tenant may break the lease early, as well as the notice and cost requirements. Some jurisdictions regulate the maximum early termination fee. Note that termination fees don’t apply if a tenant ends the lease due to landlord violations.

Section XVI. Smoking

• Smoking Policy – Describes the smoking policy for the rental property, including any designated smoking areas.

Section XVII. Signatures

• Signatures – The landlord and every adult tenant must sign the rental agreement to make it effective and binding on all parties. Each party customarily receives a copy of the lease upon execution. This is sometimes also a requirement under state law.

Frequently Asked Questions

Other rental templates.

Month-to-Month Rental Agreement

Rental Application Form

Residential Sublease Agreement

Lease Termination Letter

Room Rental Agreement

Commercial Lease Agreement

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Legal Templates

Home Real Estate Lease Agreement

Rental and Lease Agreement Templates

Use our Lease Agreement to rent out your residential property.

Updated May 15, 2024 Written by Jana Freer | Reviewed by Susan Chai, Esq.

A lease agreement (or rental agreement) is a document that explains the terms under which a tenant rents a residential or commercial property from a landlord.

Lease agreements are legally binding contracts that explain the obligations and rights of the tenant and landlord. Even if you’re renting out a room in your house to a friend or family member, you need a lease agreement for legal protection if you encounter problems with your tenants.

Lease Agreements – By State

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How to Lease a Property [Landlord Lifecycle]

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Security Deposit

Lease terms to know, how to write (fill out) a lease/rental agreement, sample lease agreement, frequently asked questions, lease agreements – by type, residential lease agreement forms [for landlords].

Use this template to rent out a residential property for a fixed period of typically one year.

This agreement includes the most essential and common clauses and can be used for a house, apartment, studio, condo, duplex, townhouse, basement, or mobile home.

Standard Lease Agreement

Use this template if you don’t want to commit to renting out your property for a full year or more, but still need to protect your rights. Using a monthly lease allows you (and your tenant) to be flexible.

Month-to-Month Lease Agreement

Use this template to rent out your property for a short period of time (usually between 1–31 days), most commonly as a vacation rental. A short-term rental agreement explains to guests the rules of their stay, and what they can expect when they arrive.

Short Term (Vacation) Rental

Rent-to-Own Lease Agreement

Lease Extension Agreement

Lease Renewal Agreement

Sublease agreement forms [for tenants].

Use this template to rent out a property (or just a room) when you’re already renting the property from another landlord. For example, you may want to sublet a property if you need to move out but don’t want to break your lease.

Sublease Agreement

Use this template when you’re renting out a room in your property and need to set rules and boundaries. For example, you can use this agreement to explain how you'll divide rent and utility payments, and whether your tenant can have guests visit.

Room Rental Agreement

Roommate Agreement

Commercial lease agreement forms.

Use this template if you’re renting out an office building, retail space, restaurant, industrial facility, or any property where the tenant will operate a business.

Commercial Lease Agreement

Use this template to rent out a piece of land that does not have a property on it. A land or ground lease can have multiple purposes, including agricultural, residential, and commercial.

Land Lease Agreement

Equipment Lease Agreement

Parking Space Rental Agreement

Disclosures & addendums.

Commercial Lease Agreement Addendum

Residential Lease Agreement Amendment

Lease Agreement Amendment

Rental Inspection Checklist

Rent Receipt

Tenant Approval Letter

Tenant Rejection Letter

• Asbestos Disclosure ( Word ) – Notifty tenants of asbestos at the property (required for properties built before 1979).
• Bed Bug Addendum ( Word ) – Explain how both parties should act in case of a bedbug infestation.
• Carbon Monoxide and Smoke Detector Addendum ( Word )– State whether the landlord will provide carbon monoxide/smoke detectors and how the tenant is responsible for keeping them in good condition.
• Commercial Lease Addendum ( PDF ) – Modify an existing commercial lease or expand upon the current contract.
• Death in Rental Unit Disclosure ( Word ) – Inform the tenant if anyone previously died on the property.
• Disclosure of Lead-Based Hazard s ( PDF ) – Notify tenants of lead-based paint or other materials (required for properties built before 1978).
• Flood Hazard Area Disclosure ( Word ) – State whether the property is in a special flood hazard area.
• Foreclosure Notice ( Word ) – Inform the tenant of an impending foreclosure.
• Illegal Substance Contamination Disclosure ( Word ) – Notify the tenant if parts of the property have been contaminated due to manufacturing or storing an illicit substance (such as methamphetamine).
• Mold Disclosure ( Word ) – Notify the tenant that the property may contain mold and whether the landlord will fix it.
• Notice of Abandoned Personal Property ( Word ) – Tell the tenant they left something in the unit when they moved out and need to collect it before it’s thrown out.
• Pet Addendum ( PDF , Word ) – Let a tenant know the specific rules for having a pet on your property.
• Shared Utilities Disclosure ( Word ) – Explain how utilities are calculated and shared between multiple residents.
• Smoke-free Addendum ( PDF , Word ) – Specify whether your tenant can smoke marijuana or tobacco on your property.

Follow the steps below to rent your property easily:

Step 1 – Show Your Rental Unit to Tenants

The first step in renting out a house or an apartment is to allow people to view the property . If tenants like the property and want to move in, they will likely inquire about the rent amount and other details.

Hosting viewings can be inconvenient if you have multiple properties, so many landlords hire a property management company to show their rental units to potential tenants.

Step 2 – Give the Tenant a Rental Application Form to Fill Out

Once you agree on the rent price, the tenant should complete a rental application . This form helps the landlord screen the tenant, and it includes information such as the applicant’s:

• Current address
• Place of employment
• Income level
• Rental references

The tenant can confirm their workplace using an employment verification letter . This document is accessible for renters to show proof of income.

Typically, landlords require a small, non-refundable fee from the tenant to process the rental application.

Be aware of what you can and can’t ask on a rental application to abide by federal laws and prevent discrimination in the selection process.

Step 3 – Run a Background and Credit Check

After reviewing the tenant’s application, you should run a background check (and/or a credit check).

Running a credit check as part of the tenant-screening process can help avoid scams and problem tenants. The tenant usually pays for the cost of a credit check.

A background check shows if the applicant has a prior criminal history, and a credit check confirms whether the applicant has good or bad credit. Bad credit may signify poor financial planning, resulting in missed rent payments.

Although these checks help you avoid dealing with bad tenants, you shouldn’t base your decision to rent the property solely on the results.

Many states have strict guidelines on tenant discrimination. Refusing tenancy because of minor criminal offenses or bad credit may justifiably violate federal anti-discrimination law.

Step 4 – Check the Tenant’s References

Next, you must check the tenant’s references in their rental application form mentioned in step 2.

You should contact the references and ask questions such as:

• Did the applicant pay their rent and utilities on time?
• Were there any noise complaints at the tenant’s previous apartment?
• Have the police ever been called to the tenant’s last rental unit?
• Would you consider renting to this person again?

Rental references are usually from current or previous landlords and can give insight into the tenant’s character and behavior.

Step 5 – Create a Lease Agreement

Once you’re happy to rent your property to a tenant, you must create a lease/rental agreement in the correct format.

You make a lease agreement by writing it yourself from scratch, filling in a blank lease agreement template that includes all the necessary clauses, or using a lease agreement builder to create a lease specific to your property.

Remember to include the following:

• The move-in date
• The monthly rent payment amount
• When the rent is due each month
• How you’ll handle late rent payments
• Who should pay or manage the utilities
• The penalties, if any, for breaking a lease

Both parties sign the agreement after you create the lease contract and review all the details with the tenant. You may need to calculate prorated rent depending on when the tenant moves in.

Step 6 – Hand Over the Keys

Once the lease agreement is completed and signed, give the tenant the keys to move into the property.

Remember to conduct a unit walkthrough alongside the tenant to finish the process. Bring a rental inspection checklist and document the property’s condition before the tenant moves in.

Step 7 – Renew or Terminate the Lease

Allow the tenant to remain on the property until the lease termination date. If you thought your tenant was responsible and you want to renew their lease (and they also want to renew), use a lease renewal agreement to renew their tenancy.

If you don’t want to renew the lease, use a lease termination letter . 

Landlord and Tenant Laws by State

Federal law recognizes that landlords and tenants have individual legal rights and obligations .

Find out what the law in your state says about your rights using the table below, or check the following specific laws for your property:

Landlord-Tenant Acts

Here are the general landlord-tenant acts by state:

Landlord’s Access

Tenants have the right to privacy when they rent a property. However, there may be reasons why a landlord needs to access the property , such as for maintenance or inspections.

Nearly every state requires a landlord to give advance notice to their tenants before accessing a rental unit. Use the table below to check how much notice you need to give in your state and review the relevant law:

Each state regulates the maximum amount of money a landlord can collect as a security deposit from a tenant. Some states also require landlords to return security deposits to tenants within a specific time (potentially with interest).

Usually, a landlord can deduct the following costs from the tenant’s security deposit:

• Unpaid rent
• Cleaning costs
• Key replacement costs
• Cost to repair damages above ordinary wear and tear
• Any other amount legally allowable under the lease

Use the table below to see the maximum security deposit limit in your state, whether it needs to be held in a separate account, and how much time you have to refund it after the lease ends:

Here are some helpful definitions for the legal language commonly present in lease and rental agreement forms:

• Access : The right to enter a property.
• Accidents : Artificial or naturally occurring events that may damage a property (fire, flood, earthquake, etc.).
• Alterations : Modifications made to a property.
• Appliances : Standard home equipment like a refrigerator or dishwasher.
• Assignment : The transfer of an interest in a lease.
• Attorney Fees : A payment made to a lawyer.
• Condemnation : The government is seizing private property for a public purpose, such as highway construction.
• Default : When a breach of contract occurs and persists, such as not paying rent or violating other terms of a rental agreement.
• Furniture : Standard home equipment such as couches, tables, beds, etc.
• Guarantor /Co-Signer : Someone accountable for paying rent if the tenant cannot.
• Guests : Short-term occupants of a rental property.
• Joint and several liabilities : Two or more people are independently held accountable for damages, regardless of who is at fault.
• Late Rent Fee : An additional, reasonable sum of money paid by a tenant after making a rent payment past the due date listed in the landlord-tenant agreement.
• Noise Policy : A provision outlining “quiet hours” in the apartment building, condominium, or neighborhood.
• Notice : A written announcement of some fact or observation.
• Option to Purchase : The tenant’s right to purchase the rental property later.
• Parking : Designated spaces where the tenant can keep their vehicles.
• Pet Policy : The permission or restriction of a tenant’s ability to have an animal in a rental property.
• Property Maintenance : Preserving a rental unit and who is responsible. Such as cutting the grass, removing the garbage, or unclogging the kitchen and bathroom drains.
• Renewal : A tenant’s option to continue the lease.
• Renter’s Insurance : A paid policy that protects personal belongings against theft or damage.
• Severability : A clause of a lease stating that if one part of the agreement is invalid for any reason, the rest of the lease is still enforceable.
• Smoking Polic y: The permission or restriction of a tenant’s smoking ability inside a rental property.
• Sublet : A temporary housing arrangement between current and new tenants to rent all or part of the currently leased property. The subletting period must be for less than the lease term.
• Successor : Someone who takes over the obligations of a lease from a tenant or landlord.
• Utilities : A public or private service supplying electricity, water, gas, or trash collection to a property.
• Waterbed : A water-filled furnishing used to sleep and not typically permitted in most rental properties.

Here’s how to write a lease :

Step 1 – Name the Parties

A simple rental agreement form must name the parties signing the lease and where they live. First, you should write down the following:

• The landlord or property management company and their current address

Step 2 – Describe the Premises

The “premises” are the exact address and type of rented property , such as an apartment, house, or condominium.

Step 3 – Define the Terms of the Lease

The “term” is the length of time a tenant will rent the listed property. A standard agreement should detail when the lease term begins and ends .

Furthermore, a lease can either be fixed-term or month-to-month.

• A fixed-term rental lease means the agreement is set for a predetermined or fixed period. This lease expires on the end date listed in the agreement (usually up to 6 months, one year, or two years from the start date).
• A month-to-month rental lease means the agreement lasts one month with no defined end date. It continues monthly until either the landlord or tenant terminates the agreement.

Step 4 – Set How Much Rent the Tenant Will Pay

A lease agreement must explicitly list the monthly rental amount and outline the consequences of late rent.

It’s up to the landlord to decide how much to charge for rent, but the cost is usually comparable to other properties within the same area.

In addition, standard rent control laws may limit the amount you can charge for rent. Check your local rent control ordinance to ensure your lease agreement complies with those regulations.

Step 5 – Assign a Security Deposit Amount

A security deposit is a set amount of money a landlord collects at the beginning of the lease.

Landlords have the right to collect a security deposit from their tenants. Still, their states’ security deposit laws define what landlords can use that money for (check the security deposit laws of your state ).

Step 6 – Finalize the Lease

Once you finish discussing the details with your tenant, remember to:

• Print – print at least two copies of the rental lease for you and the other party
• Sign – sign and date the lease agreement (both the tenant(s) and landlord)
• Save – safely file a hard copy of the signed document and consider scanning an electronic copy for extra safekeeping.

The following standard residential lease agreement works for all states except California , Florida , and Washington, DC .

Why do I need a lease agreement?

]You need a lease agreement because it explains your responsibilities as a landlord and sets rules for the tenants living on your property. This form helps you avoid disputes with your tenants and address issues when they arise.

Suppose you rent out a property but don’t use a lease agreement. In that case, you could lose rent money, be liable for illegal activities on the property, receive penalties for unpaid utility costs, or spend a lot on property damage repairs and lawyer fees. Anyone renting a home, land, or commercial building should have a lease agreement.

How do I rent a room in my house?

You rent out a room in your house by using an agreement stating you’re renting out a room, not the entire property. If you’re a tenant living in a rental property, you can sublet a room to another tenant using a room rental agreement .

A standard residential lease and a room rental agreement allow you to establish quiet hours, the times guests can visit, the division of utility payments, and rules regarding pets, smoking, and parking.

Both parties sign the agreement to rent a room, and the landlord collects a security deposit from the tenant before handing over the keys.

What’s the difference between a lease and a rental agreement?

The difference between a lease and a rental agreement is the duration of the contract. Lease agreements are typically long-term (12 to 24 months), whereas rental agreements are usually short-term (a few weeks or months).

If you decide whether a lease or rent is best for you, remember that a lease agreement provides more security, but a rental agreement offers more flexibility.

What are my responsibilities as a landlord?

Your responsibilities as a landlord include the following:

• Repairing and maintaining the normal wear and tear of appliances like the air conditioner or heater.
• Respecting a tenant’s right to “quiet enjoyment” (living without disturbances). For example, you should deal with noise complaints accordingly, and you shouldn’t visit the property unnecessarily.
• Providing the tenant with a safe and clean home for the lease term. Examples include removing mold , resolving water damage, and fixing ventilation problems.
• Returning the tenant’s security deposit if the tenant treats the property respectfully and the rental is in good condition at the end of the lease term.
• Giving the tenant advance notice when you must enter the premises to fix something or show someone the property.

What happens if a tenant violates a lease?

If a tenant violates a lease , the landlord may try to resolve the problem by allowing the tenant to fix it (unless the violation is significant, such as using the property to sell or manufacture illegal drugs). If the issue is not resolved within a specific period (as set by state law), the landlord can begin eviction to remove the tenant.

Common lease violations include unpaid rent/utility bills and damage to the property.

What should I include in a lease agreement?

You should include the following information and clauses in a lease agreement:

• Names of all tenants : Write the names of every adult living on the property.
• Term : State the lease’s duration and whether it’s for a fixed period or will automatically renew.
• Rent : Set the amount of money the tenant will pay to live in the property and which day of the month the tenant will pay the rent.
• Premises : Describe the property and its location.
• Security deposit : Assign an amount of money the tenant will give the landlord to hold in case of any damages

Depending on your property and its location, you may need to include some standard disclosures and addendums that address specific situations, such as smoking or pets.

Related Documents

• Lease Termination Letter : A document created by the landlord or tenant in order to end an existing lease or rental agreement.
• Lease Renewal Agreement : Extends the term of an existing lease agreement between a landlord and a tenant.
• Eviction Notice : A written record that the Landlord properly notified the Tenant of a problem (i.e. lease violation, late rent, the lease ended).
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The document above is a sample. Please note that the language you see here may change depending on your answers to the document questionnaire.

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