What to Include in a Lease Agreement? (Landlord’s 2025 Guide)

A lease agreement is a binding legal agreement, and it’s important to ensure that it’s airtight and contains important rules and requirements as well as any necessary disclosures. This document outlines the specifics for your property and details what is expected of both you and your tenants. It can also help to provide protection for both landlord and tenant alike as well as offer clarity when questions arise.

But a lease agreement is only effective if it contains the right details, and is in compliance with the law. In this article, we’ll take a look at some important considerations when drafting a lease, as well as important clauses that you’ll want to include in one.

Note that this is not an exhaustive list, and you’ll want to check with an attorney who is experienced in landlord-tenant law to make sure you’ve covered everything in your lease.

Key Takeaways

1. A lease agreement protects both landlord and tenant by defining responsibilities and expectations
2. Include key terms like rent, deposits, maintenance, and use of the property
3. Always ensure your lease complies with local, state, and federal law
4. Consider having an attorney or property manager review your lease before signing

What is a Lease Agreement for Rental Properties?

When it comes to owning rental properties, a lease agreement is one of the most important documents you can have.

A lease agreement is a binding legal agreement, and it’s important to ensure that it’s airtight and contains important rules and requirements as well as any necessary disclosures. This document outlines the specifics for your property and details what is expected of both you and your tenants. It can also help to provide protection for both landlord and tenant alike as well as offer clarity when questions arise.

But a lease agreement is only effective if it contains the right details, and is in compliance with the law. In this article, we’ll take a look at some important considerations when drafting a lease, as well as important clauses that you’ll want to include in one.

Why a Lease Agreement Matters

A lease agreement isn’t just a formality—it’s a legally binding contract that ensures both you and your tenants understand the rules and requirements of the tenancy.

A clear lease helps:

1. Prevent disputes by setting expectations up front
2. Protect both parties if questions or conflicts arise
3. Define important terms like rent amount, duration, and property use

Simply put, the lease is your roadmap for a successful landlord-tenant relationship.

Legal Considerations Before Drafting a Lease

Before you begin writing or customizing a lease, review both federal and state landlord-tenant laws to make sure your agreement is compliant. Laws vary depending on where your property is located, but here are a few key regulations to be aware of:

• The Fair Housing Act

The Fair Housing Act protects from discrimination against race or color, religion, sex, national origin, familial status, or disability.

• Rent Control Regulations

Some states have a rent control in place that puts a limit on how much you can charge for rent.

• Security Deposit Laws

Some states also have laws regarding the security deposits; how much you can collect, how long you can keep it after a tenant moves out, and whether you are required to keep the deposit in an interest-bearing account. Be sure to check the requirements in your state

Always check your state and local laws before finalizing your lease.

What to Include in a Lease Agreement

When drafting your lease, include these key elements to ensure it’s complete and enforceable.

1.  Names and Contact Information

List the full legal names of every tenant and include your name, address, and contact information as the landlord or property manager.

2.  Rental Property Description

While it might seem basic, it is important to include the description of your rental property in your lease agreement. Be sure to include things such as rooms, bathrooms, parking spaces, and facilities. If it is an apartment, be sure to include the areas that are for shared use such as sheds or garage spaces. You should also include details such as furnishings, if they are included and in what condition they are in and expected to be in when the lease is up.

3.  Lease Term

You should also include the terms of your lease; do you plan to have a monthly lease? A year or longer? The most popular are month-to-month, six months, and a year. Let’s take a look at some of the advantages and disadvantages for each option to help you decide which would be best.

• Month-to-Month Lease
  Offers flexibility but less stability for both parties.

• Six-Month Lease
  A balanced option for short-term commitments.

• One-Year Lease
  Provides consistency and security for landlords and tenants alike.

4. Rent and Fees

Another area you should outline is the rent. How much monthly rent is, how much a late fee is and when it will be charged, and what happens should multiple payments be missed.

• Rent amount and due date
• Accepted payment methods (such as direct deposit or online payments)
• Late fees and grace periods
• Rent increases, including how much notice you’ll provide before making a change

It is important to check your state laws to see what laws are in place regarding rent, as some states and jurisdictions have rent control measures in place that limit how much you can charge, how often you can raise the rent, and by how much. There are also laws regarding evictions due to lack of payment that you should beware of when writing up a lease.

5. Security Deposit

Another thing you will want to include in your lease is the security deposit. This deposit is collected to help cover potential damages caused by tenants or if there is past due rent owed when a tenant moves out. It is important to outline how a security deposit will be used and refunded. Keep in mind that a security deposit can not be kept to cover normal wear and tear, improvements, or preexisting damages.

Questions to ask when it comes to security deposits

What is the maximum amount you are allowed to collect?

• Be sure to check with your state laws as some states have a cap on how much a security deposit can be.

What is the time period in which you will return the money?

• It’s important to clarify when you will return the security deposit, you should check with your state’s laws to determine how long you legally have, most states require you to return the deposit or give an itemized list of deductions within 30 days.

Are you required to pay interest?

• Some states require you to pay your tenants interest on their money as well. Be sure to check your state’s laws on this and outline the interest rate that will be paid.

6. Landlord’s Right to Enter

You should also include in writing your right to access the rental and how much notice you are required to give in different situations, and ensure that it’s in compliance with your state’s law. For some states, landlords may need to provide 24 hours’ notice to make repairs, but may be able to enter without advanced notice in an emergency.

7. Required Disclosures

Federal, state, and even local laws may require landlords to disclose certain information in the lease agreement. In some states, this includes disclosures about lead-based paint or whether the rental has had a history with bed bugs. Be sure to check into the laws in your city and state to see whether you are required to make disclosures, and if so, what these look like.

8. Use of Premises

The lease agreement should also stipulate how the tenant can use the rental. This should include regulations or restrictions on home businesses as well.

9. Pet Policy

Are you planning to allow pets in your rental? If so, what is your policy on cleaning up after them? What about noise control? Damages caused from pets? If you don’t plan to allow pets you should be sure to outline what happens should your tenants bring in an unauthorized pet. Having a pet policy can help protect you and your property.

Still deciding whether to allow pets? Read: Sit. Stay. Renting to Pet Owners – What You Should Know

10. Noise Policy

Noise complaints are among the most common complaints, especially in an apartment complex. Write out your policy on noise complaints so that everyone is aware of how it is handled should the need arise.

11. Maintenance and Repairs

One of the biggest rifts between landlords and tenants is the debate on who is responsible for what when it comes to maintenance and repairs. To help limit the confusion, include things such as who is responsible for what maintenance, who to contact if repairs are needed, as well as an emergency contact number for those middle of the night emergencies. You should also outline how you plan to handle repair requests.

12. Utilities

Your lease should clarify what utilities are included and which utilities will need to be covered by your tenant. You should also outline what will happen should the utilities that are vital to the property and are covered by tenants, such as water or electric, lapse and need to be paid.

13. Parking

It is also important to outline any parking restrictions, if they apply. Do you only offer street parking? Do you have one spot available per tenant? Where should guests park? Be sure to outline how many spaces each tenant is allowed and where others should park. Also be sure to include what will happen to unauthorized vehicles or those who stay past the allotted time.

14. Subletting and Roommates

You should also outline if you allow for subletting or roommates. If you don’t want tenants to have roommates or sublet your property, you’ll need to specify this in the rental agreement. If you do decide to allow subletting, you’ll want to include clear terms and for this to help protect your rental.

Understanding Landlord vs. Tenant Responsibilities

Another important piece to include is who will be responsible for what in regards to the upkeep of the property. Outline what your tenants will be responsible for caring for and detail what you as a landlord will be managing. You should also outline the joint tasks that will be shared between the two of you. Make sure all tasks are assigned in compliance with state law.

For some ideas on what is generally considered to be a landlord or tenant’s responsibility, be sure to see: Tenant vs. Landlord Responsibilities: Who Handles What?

Should You Hire a Property Manager?

Creating a legally sound lease takes time, research, and attention to detail. A professional property manager can help handle lease creation, tenant screening, maintenance requests, and more—so you can focus on your investment, not the day-to-day work.

If you’re considering hiring a property management company, look for one that’s experienced, transparent, and knows local laws.

FAQs

• What should be included in a lease agreement?

Include the property description, tenant and landlord details, lease term, rent amount, deposit terms, maintenance responsibilities, and required disclosures.

• What makes a lease legally binding?

A lease becomes legally binding once both landlord and tenant sign the agreement and it includes lawful terms that comply with local and federal laws.

• How long should a lease agreement last?

Most leases run month-to-month, six months, or one year. Choose a term that aligns with your property goals and local rental trends.

• Can landlords enter a rental without notice?

Usually only in emergencies. Otherwise, landlords typically must give at least 24 hours’ notice before entering.