Residential Lease Agreement: A Basic Guide
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What Is a Residential Lease Agreement?
A residential lease agreement, sometimes referred to as a lease or rental agreement, is a legal contract a tenant and landlord sign when a tenant decides to rent a residential property. It outlines the terms and conditions of the tenancy, including the obligations and rights of the tenant and landlord. Tenants and landlords can use residential lease agreements for a variety of residential properties, including townhouses, duplexes, condos, houses, apartments, and more.
What Are the Landlord's and Tenant's Obligations in a Residential Lease Agreement?
The landlord's most important obligations in a residential lease agreement include:
- Giving the tenant access to the property
- Obligations to maintain or repair the structure of the property
- Allowing the tenant to enjoy the property undisturbed
On the other hand, the tenant's most important obligations in a lease agreement include:
- Paying rent on the agreed-upon date
- Not to cause damage to the property
What Does a Residential Lease Agreement Include?
The clauses included in a residential lease agreement vary depending on whether it is a standard residential lease agreement or a comprehensive lease agreement. A standard residential lease agreement typically includes the following:
- Name of the landlord and tenants: A residential lease agreement must specify the name and address of the tenant and the landlord. All tenants over the age of 18 must be named on the lease.
- Description of the property: The lease agreement should also specify the type of property being rented and its complete address, including the building or unit number, street name, town, state, and ZIP code. It should also specify any specific parking spots or storage areas as well as the areas that the tenant is not allowed to access.
- Term of the lease: This refers to the date the residential lease agreement is valid for, including the tenancy length, the start date, and the expiration date. Many yearly leases automatically convert to monthly leases once the original lease term ends.
- Rent amount and due date: The lease agreement must specify how much and when rent is due. It must indicate the full amount of rent due over the period of the entire lease and the amount due per month. It must also specify acceptable payment methods, whether the landlord charges a late payment fee, and grace period (if any).
- Security deposit terms: The lease agreement must also specify a security deposit clause, which includes the amount of security deposit collected, the date the security deposit was collected, interest rate, name and address of the bank where the security deposit is held, reasons deductions can be taken from the deposit, and the procedures for issuing a refund.
- Repair and maintenance policies: The agreement should also clearly explain the repair and maintenance policies, including the tenant's responsibility to maintain sanitary and clean premises and to pay for any damage they cause, a requirement that the tenant notifies the landlord about dangerous or defective conditions, and restrictions on tenant alterations and repairs.
In addition to the clauses in a standard residential lease agreement, a comprehensive residential lease agreement can specify whether or not the property is furnished, appoint a property manager who acts on behalf of the landlord, and state whether or not the tenant can operate a home business on the premises. This type of residential lease agreement also allows the landlord to include a pet fee or deposit and includes information about a guarantor or surety. A guarantor is someone, such as the tenant's parent or close friend, who agrees to pay the rent if the tenant defaults on rent.
Here's an article that shares a few other essential clauses in a residential lease agreement.
Lease Agreement Templates
Who Can Live in the Property Under a Residential Lease Agreement?
Only the tenant and the people listed as occupants can live in the property. The difference between a tenant and an occupant is that a tenant is a person who signs a lease agreement, while an occupant is a person who lives in the property with a landlord's permission but doesn't have the same obligations and rights as a tenant. For example, an occupant is not legally required to contribute to a security deposit or pay rent but a tenant would.
Occupants can be both children and adults. Children adopted or born while the tenant lives in the property are automatically listed to lease as occupants. However, any state may limit the number of occupants/tenants in the property if that number violates safety or health regulations for housing. These regulations vary from one state to another.
Does a Residential Lease Agreement Have to be Notarized?
A residential lease agreement doesn't have to be notarized because a lease is usually considered a short-term contract. Lease terms are usually month to month, six months, or one year in length.
Some states consider leases that exceed one year to be long-term leases. In this case, the residential lease agreement has to be notarized. It doesn't usually cost much money to notarize a residential lease agreement.
If you want to learn more about how much you can expect to pay in notary fees, head to this article .
What Happens When a Residential Lease Agreement Ends?
If a tenant chooses a periodic term lease, the lease will automatically renew with the same terms and conditions as the initial lease, unless the landlord made some changes using the required notice period. Even after the initial lease period, notice from either the landlord or the tenant is required to end the lease agreement.
If a tenant chooses a fixed-term lease, however, the lease agreement between the tenant and landlord may continue if both parties agree. In some states, a fixed residential lease automatically becomes a periodic term residential lease. In other states, the fixed-term lease may become a "tenancy at sufferance" or a "tenancy at will" when it ends, which only lasts as long as the tenant and landlord want it to. This type of residential lease term usually occurs after an expired residential lease agreement and doesn't have as much legal protection as an unexpired residential lease.
If a tenant decides to terminate all rights under a fixed-term residential lease agreement as soon as it expires, they should serve notice before the end of the lease term, in accordance with their local requirements.
Image via Flickr by stu_spivack
What Happens If a Tenant Decides to End a Fixed-Term Tenancy?
If a tenant agreed to a fixed-term tenancy, they have to pay the rent during that period. If the tenant leaves the property before the term of the contract ends, they're still responsible to pay the rent for the entire length of the lease. However, if the landlord is able to re-rent the property before the end of the lease of the breaching tenant, they may no longer require the breaching tenant to pay rent. Landlords are not allowed to collect double rent, even if the previous tenant has left.
What Happens If a Tenant Violates a Term of the Residential Lease Agreement?
If the tenant breaches a term of the residential lease agreement, they're responsible for correcting it. This may involve paying money to repair any damages that the tenant or their guests may have caused. If they don't voluntarily pay to correct the breach, such as making a payment or repair, they can be evicted by the landlord or possibly face a lawsuit for damages sustained as a result of the breach.
If you are a landlord preparing to lease residential property, a residential lease agreement can provide important protections. When you are drafting a residential lease agreement, consult with a lawyer to make sure your document includes all necessary aspects.
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Michael M.
www.linkedin/in/michaelbmiller I am an experienced contracts professional having practiced nearly 3 decades in the areas of corporate, mergers and acquisitions, technology, start-up, intellectual property, real estate, employment law as well as informal dispute resolution. I enjoy providing a cost effective, high quality, timely solution with patience and empathy regarding client needs. I graduated from NYU Law School and attended Rutgers College and the London School of Economics as an undergraduate. I have worked at top Wall Street firms, top regional firms and have long term experience in my own practice. I would welcome the opportunity to be of service to you as a trusted fiduciary. In 2022 and 2023, I was the top ranked attorney on the Contract Counsel site based upon number of clients, quality of work and number of 5 Star reviews.
"Working with Michael has been fantastic. You'll be hard-pressed to find someone more knowledgeable and honest than him!"
Alton H.
I am a U.S.-licensed attorney with more than a decade of experience in complex litigation and intellectual property matters. I have practiced at leading Am Law firms including Pillsbury Winthrop Shaw Pittman, Arent Fox, and Sughrue Mion, and I currently operate my own law practice. I have extensive experience handling high-stakes patent litigation, drafting pleadings and briefs, managing large-scale discovery, preparing and defending depositions, and appearing before federal courts and administrative bodies such as the PTAB and ITC. I hold a J.D., cum laude, from The George Washington University Law School and advanced technical degrees in chemistry and chemical engineering, which allow me to efficiently handle technically complex matters. I am admitted in multiple jurisdictions, including New York, Virginia, New Jersey, and the District of Columbia, and I regularly provide high-quality remote legal support to clients nationwide.
"Alton reviewed and finalized two complex agreements for us: an Independent Contractor Agreement and a Phantom Equity Agreement with Section 409A compliance, cross-border considerations, and layered compensation. We came in with detailed drafts and a review package, and he worked through every item methodically. He identified the right issues, asked the right questions, and delivered clean execution-ready documents on time. Highly recommend for anyone with executive-level contractor or equity compensation work."
Samuel R.
My career interests are to practice Transactional Corporate Law, including Business Start Up, as well as Real Estate Law, Estate Planning Law, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I currently serve as General Counsel for a bioengineering company. I handle everything from their Business Transactional Agreements, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing expert specialized legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I was selected to the Super Lawyers Southwest Rising Stars list for 2024 - 2026. Each year no more than 2.5% of the attorneys in Arizona and New Mexico are selected to the Rising Stars. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, and also trademark registration and licensing.
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Spencer J.
I provide the strategic legal guidance of an in-house general counsel without the full-time overhead. Whether you're launching a startup, scaling your digital business, or navigating complex privacy regulations, I'm here to help. With a practice concentrated in privacy law, digital marketing compliance, and small business operations, I help clients make informed decisions that protect their interests while supporting their growth objectives.
Nick G.
My name is Nick Gleason, and I’m an attorney licensed in California and a veteran of the United States Navy. While in law school, during my clerkship with Mob Entertainment, I worked under the General Counsel, drafting cease and desist letters, demand letters, and assignment and licensing agreements. I also worked with outside counsel on copyright infringement matters, helping to protect the interests of the company. Now in my professional practice, I continue to help clients like you protect your interests by offering affordable legal representation for all your contract and copyright needs. I can draft contracts, review proposed agreements for vulnerabilities, and negotiate terms on your behalf, as well as prepare effective cease and desist letters and demand letters tailored to your situation, including in copyright and DMCA-related matters. I will always be fair and transparent with my fees. I’d love to hear from you.
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Michelle D.
My career experience has been varied. Although litigation has been a central focus, I’ve served as Of Counsel for a franchise law firm, negotiating contracts with franchisees and vendors to ensure the best terms possible for my client. I have demonstrated acumen in leading and supervising the work of others. As an associate attorney for Shulman Rogers, I oversaw the Summer Intern Program. Throughout my career I directed the work of paralegals and legal receptionists. As a solo practitioner I employed a junior attorney. At each phase I was responsible for the work and performance of another. In my transactional practice I regularly advise clients on agreements, negotiate favorable terms on their behalf, draft agreements, interpret contractual provisions in disputes, provide opinion letters, and represent clients in mediation and arbitration. I’m accustomed to working in high stress, high stakes environments with quick deadlines, demanding and often emotional clients, while performing work that requires great detail, accuracy, and advocacy.
Eric H.
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"I had a great experience working with Zachary through Contracts Counsel. He was extremely efficient in reviewing my lease agreements and provided thoughtful, clear feedback that helped tighten up the legal language. Thanks to his expertise, I now have a solid, reusable lease I feel confident sharing with future tenants. He was responsive, professional, and easy to work with — highly recommend him for any contract or lease review needs!"
Real Estate
Residential Lease Agreement
Illinois
What are the laws for subletting a bedroom in 2 bhk appartment without landlord consent in Illinois?
I wanted to sublet my apartment without landlord consent, since my lease with this landlord doesn't allow sublease, May I know if there is any possible way to make this bedroom sublet without landlord agreement. My city is Peoria, Illinois
T. Phillip B.
If your lease doesn't allow a sublease, you can't do it. I'd just approach the landlord and see what could be done. If the person moving in would be willing to sign a one-year lease and do the typical background check, the landlord may let you out of your lease.
Landlord Tenant
Residential Lease Agreement
Indiana
Can a landlord in Indianapolis record video and audio without telling the tenant?
I rent a room in a house. Landlord ./owner oesnt live here. A week ago he installed cameras in the living room and kitchen. They don't cover exterior doors. He said nothing to me but I see them. Not hidden. Tonight I found out he can talk to me and hear me through them. Is this legai? What should I do?
Joseph B.
The question would be what exactly do you rent. Do you rent a room and the kitchen and livingroom are common areas or do you rent the entire space. You have an expectation of privacy inside the space you rent. So, for example, if you rent a single room, you have an expectation of privacy inside that room, and thus there is no expectation of privacy in the common areas. However, if you rent the entire space, then the area for your expectation of privacy is the entire unit. This does not apply to bathrooms or changing rooms or other areas where there is also a general expectation of privacy.
Real Estate
Residential Lease Agreement
Ohio
Security deposits in residential lease agreement?
I recently signed a residential lease agreement for an apartment. I was informed that I would need to pay a security deposit as part of the agreement. I am trying to understand what the security deposit covers and what happens to the deposit at the end of the lease agreement. I want to make sure I am fully aware of my rights and obligations regarding this security deposit.
Georgie A.
A security deposit in a residential lease serves the following key purposes: 1. Property Protection: It covers damage or excessive wear and tear to the rental property during the tenant's stay. 2. Rent Arrears: It can be used to cover unpaid rent or other financial obligations if the tenant fails to pay rent. 3. Tenant Responsibility: It encourages tenants to take care of the property and fulfill lease obligations. 4. Landlord's Peace of Mind: It acts as insurance for landlords against potential losses. 5. Legal Compliance: Landlords must follow specific laws for holding and returning deposits. 6. Tenant Refund: Tenants get the deposit back if they meet lease terms, encouraging compliance. 7. Understanding deposit terms and local regulations is crucial to prevent disputes.
Landlord Tenant
Residential Lease Agreement
Florida
Length of a standard residential lease agreement?
I am in the process of looking for a new place to rent and want to make sure I understand my rights as a tenant. I am looking to sign a residential lease agreement and was wondering what the standard length of the agreement is so I can plan accordingly. I want to make sure I am aware of any potential pitfalls or issues that may arise from signing a long-term lease.
Linda W.
Being a landlord myself, and haven’t been involved in numerous residential landlord/tenant proceedings, my experience is that most residential leases are for one year. However, that being said we do live in Florida, and there are a lot of people who come down here just for the winter, which therefore involves shorter term leases. And if it is a condominium, the minimum length of time is determined by the condominium documents. If it is a home in a community, it would be covered by the HOA documents. Freestanding homes are limitless.
Landlord Tenant
Residential Lease Agreement
Washington
Residential lease agreement and association rules?
I recently signed a residential lease agreement and have recently been made aware of association rules that may affect my rights and obligations as a tenant. I am concerned that these rules may conflict with the terms of my lease agreement and am seeking legal advice to ensure that I am aware of any potential issues that I may face.
Merry K.
If you would like to request me through a project, I’d be happy to review all documents and WA State law and provide you with advice. It will be important to know whether or not you were informed that you will have to comply with the HOA rules at the time you signed the lease—many leases state the necessity to comply with HOA CC&R’s and/or Bylaws and/or rules as well as WA State law.
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