Use our lease agreement to rent out your residential property.
Updated August 12, 2024
Written by Jana Freer | Reviewed by Susan Chai, Esq.
A lease agreement (or rental agreement) is a legally binding contract that outlines the obligations and rights of the tenant and landlord. It establishes the terms of the tenancy and helps you avoid disputes with your tenants and address issues when they arise.
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.
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.
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.
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.
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.
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.
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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.
Prepare the rental unit for showings. Clean it thoroughly and perform necessary repairs to create a clean and safe living environment. Ensure the unit and associated building comply with local zoning laws, building codes, and rental regulations. You can also conduct a market analysis to set a reasonable rental price.
Once the unit is ready, list it for rent on real-estate-specific platforms like Trulia, Zillow, and Realtor.com. Schedule viewings with potential tenants to let them see the property in person. Answer their questions and prepare to sell the property as an enjoyable living place.
Consider your property’s unique features, amenities, and neighborhood. Market these in your listings and highlight them in your showings to attract suitable tenants.
Ask potential tenants to complete a rental application and submit a small, non-refundable fee to process the application. This form helps the landlord screen prospective candidates, and it includes information such as the applicant’s:
Prospective tenants may provide supplementary forms in addition to the rental application, including an employment verification letter to confirm their workplace and a rental verification form to verify past rental details.
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.
After reviewing a candidate’s application, you should run a background check and a credit check. A credit check, often paid for by the applicant, can help prevent scams and tenant-related issues .
Then, clearly communicate your decision to applicants through a formal rejection or acceptance letter.
Some common tools for screening potential tenants include the following:
Next, you must check the applicant’s references in the rental application form from step two.
Contact the references and ask questions such as:
Rental references are usually from current or previous landlords and can give insight into the applicant’s character and behavior.
Negotiate the terms of a potential arrangement with the applicant. Be empathetic to their situation while maintaining good business sense, ensuring that you don’t lose money by entering the landlord-tenant relationship with them.
Determine your own goals and limitations. Decide what parts of the lease you’re willing to negotiate and establish boundaries for factors that you can’t negotiate.
Once you’re happy to rent your property to a tenant, a formal lease agreement outlining the terms of the tenancy is created. Once finalized, both parties sign the agreement.
Remember to include the following:
Once both parties sign the lease, you can collect the first month’s rent and security deposit from the tenant. Document these payments so you can ensure their accuracy and refer to them later if necessary. Remember to conduct a unit walkthrough alongside the tenant to finish the process. Bring a rental inspection checklist and document the property’s condition.
At this point, you may give the tenant the keys and allow them to move into the unit.
Manage the property while the tenant lives there. Some responsibilities you will have include the following:
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.
Once a lease ends, you must return the security deposit to a tenant following your jurisdiction’s requirements. Conduct a thorough property inspection to determine the unit’s condition. You may be allowed to keep all or part of the deposit if the tenant caused more damage than normal wear and tear. You may also be entitled to keep some of it if they fail to pay a portion of their owed rent.
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:
Here are the general landlord-tenant acts by state:
Tenants have the right to privacy when they rent a property. However, a landlord may need to access the property 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:
State | Advance Notice Requirement | Law |
---|---|---|
Alabama | 2 days | Ala. Code § 35-9A-303 |
Alaska | 1 day | Alaska Stat. § 34.03.140 |
Arizona | 2 days | Ariz. Rev. Stat. § 33-1343 |
Arkansas | Not required | N/A |
California | - 1 day - 2 days for move-out rental inspection | Cal. Civ. Code § 1954 |
Colorado | Not required | N/A |
Connecticut | Reasonable written or verbal notice | Conn. Gen. Stat. § 47a-16 |
Delaware | 2 days | Del. Code tit. 25 § 5509 |
Florida | 12 hours | Fla. Stat. § 83.53 |
Georgia | Not required | N/A |
Hawaii | 2 days | Haw. Rev. Stat. § 521-53 |
Idaho | Not required | N/A |
Illinois | Not required | N/A |
Indiana | Reasonable written or verbal notice | Ind. Code § 32-31-5-6 |
Iowa | 1 day | Iowa Code § 562A.19 |
Kansas | Reasonable written or verbal notice | Kan. Stat. § 58-2557 |
Kentucky | 2 days | Ky. Rev. Stat. § 383.615 |
Louisiana | Not required | N/A |
Maine | 1 day | Me. Stat. tit. 14 § 6025 |
Maryland | Not required | N/A |
Massachusetts | Reasonable written or verbal notice | Mass. Gen. Laws ch. 186 § 15B |
Michigan | Not required | N/A |
Minnesota | Reasonable written or verbal notice | Minn. Stat. § 504B.211 |
Mississippi | Not required | N/A |
Missouri | Not required | N/A |
Montana | 1 day | Mont. Code § 70-24-312 |
Nebraska | 1 day | Neb. Rev. Stat. § 76-1423 |
Nevada | 1 day | Nev. Rev. Stat. § 118A.330 |
New Hampshire | Reasonable written or verbal notice | NH Rev. Stat. § 540-A:3 |
New Jersey | 1 day | N.J.A.C. 5:10-1.1 |
New Mexico | 1 day | NM Stat. § 47-8-24 |
New York | Not required | N/A |
North Carolina | Not required | N/A |
North Dakota | Reasonable written or verbal notice | N.D. Cent. Code § 47-16-07.3 |
Ohio | 1 day | Ohio Rev. Code § 5321.04 |
Oklahoma | 1 day | Okla. Stat. tit. 41 § 128 |
Oregon | 1 day | ORS § 90.322 |
Pennsylvania | Not required | N/A |
Rhode Island | 2 days | RI Gen. Laws § 34-18-26 |
South Carolina | 1 day | SC Code § 27-40-530 |
South Dakota | 1 day | SD Codified Law § 43-32-32 |
Tennessee | 1 day | Tenn. Code § 66-28-403 |
Texas | Not required | N/A |
Utah | 1 day | Utah Code 57-22-4 |
Vermont | 2 days | 9 V.S.A. § 4460 |
Virginia | 1 day | Va. Code § 55.1-1229 |
Washington | - 2 days with written or verbal notice - 1 day for the intent to show the unit | Wash. Rev. Code § 59.18.150 |
West Virginia | Not required | N/A |
Wisconsin | ". advance notice and at reasonable times" | Wis. Stat. § 705.05 |
Wyoming | Not required | N/A |
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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:
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:
State | Maximum Deposit Limit | Held in Separate Account | Refund | Law |
---|---|---|---|---|
Alabama | 1 month's rent | Not required | 35 days to return deposit | Ala. Code § 35-9A-201 |
Alaska | 2 months' rent, unless monthly rent is greater than $2000 | Escrow account required | - 14 days to return deposit - 30 days to return deposit if tenant doesn't provide proper notice | Alaska Stat. § 34.03.070 |
Arizona | 1½ months' rent, unless tenant volunteers to pay more | Not required | 14 days to return deposit | Ariz. Rev. Stat. § 33-1321 |
Arkansas | 2 months' rent unless landlord owns fewer than 6 rental units | Not required | 60 days to return deposit | Ark. Code § 18-16-304 and Ark. Code § 18-16-305 |
California | 2 months rent (if unfurnished) or 3 months' rent (if furnished) | Not required | 21 days to return deposit | Cal. Civ. Code § 1950.5 |
Colorado | No regulation | Not required | - 30 days to return deposit unless otherwise stated in the lease - 60 days maximum if not stated in the lease | Colo. Rev. Stat. § 38-12-103 |
Connecticut | - 2 months' rent if tenant is under 62 years old - 1 month's rent if tenant is over 62 years old | Interest-bearing account required | 30 days to return deposit | Conn. Gen. Stat. § 47a-21 to Conn. Gen. Stat. § 47a-22a |
Delaware | 1 month's rent for 1-year lease agreements (if unfurnished) | Escrow account required | 30 days to return deposit | Del. Code tit. 25 ch. 53 |
Florida | No regulation | Interest-bearing or non interest-bearing escrow account required (landlord's choice) | - 15 days to return deposit - 30 days if any amount is retained | Fla. Stat. § 83.49 |
Georgia | No regulation | Escrow account required except if landlord owns fewer than 11 rental units (unless managed by a third party) | 30 days to return deposit | Ga. Code § 44-7-31 to Ga. Code § 44-7-37 |
Hawaii | 1 month's rent | Not required | 14 days to return deposit | Haw. Rev. Stat. § 521-44 |
Idaho | No regulation | Not required | - 21 days to return deposit unless otherwise stated in the lease - 30 days maximum if not stated in the lease | Idaho Code § 6-321 |
Illinois | No regulation | Not required | 45 days to return deposit | 765 ILCS 705/ |
Indiana | No regulation | Not required | - 21 days to return deposit unless otherwise stated in the lease - 30 days maximum if not stated in the lease | Ind. Code § 32-31-3 |
Iowa | 2 months' rent | Federally-insured account required | 30 days to return deposit | Iowa Code § 562A.12 |
Kansas | 1 month's rent (if unfurnished) or 1½ months' rent (if furnished) | Not required | 30 days to return deposit | Kan. Stat. § 58-2550 |
Kentucky | No regulation | Escrow account required | 30 days to return deposit | Ky. Rev. Stat. § 383.580 |
Louisiana | No regulation | Not required | 30 days to return deposit | La. Stat. tit. 9 § 3251 |
Maine | 2 months' rent | Not required | 30 days to return deposit | Me. Stat. tit. 14 § 710-A |
Maryland | 2 months' rent | Escrow account required | 45 days to return deposit | Md. Code, Real. Prop. § 8-203 |
Massachusetts | 1 month's rent | Interest-bearing escrow account required | 30 days to return deposit | Mass. Gen. Laws ch. 186 § 15B |
Michigan | 1½ months' rent | Not required | 30 days to return deposit | Mich. Comp. Laws § 554.615 |
Minnesota | No regulation | Not required | 21 days to return deposit | Minn. Stat. § 504B.178 |
Mississippi | No regulation | Not required | 45 days to return deposit | Miss. Code § 89-8-21 |
Missouri | 2 months' rent | Not required | 30 days to return deposit | Mo. Rev. Stat. § 535.300 |
Montana | No regulation | Not required | - 10 days to return deposit - 30 days if any amount is retained | Mont. Code § 70-25-201 |
Nebraska | 1 month's rent | Not required | 14 days to return deposit | Neb. Rev. Stat. § 17-1416 |
Nevada | 3 months' rent | Not required | 30 days to return deposit | Nev. Rev. Stat. § 118A.242 to Nev. Rev. Stat. § 118A.250 |
New Hampshire | 1 month's rent or $100 (whichever is greater) | Not required | 30 days to return deposit | NH Rev. Stat. § 540-A:6 to NH Rev. Stat. § 540-A:8 |
New Jersey | 1½ months' rent | Not required | 30 days to return deposit | NJ Rev. Stat. § 46:8-19 |
New Mexico | - 1 month's rent for lease terms less than 1 year - No limit for lease terms greater than 1 year | Not required | 30 days to return deposit | NM Stat. § 47-8-18 |
New York | No regulation | Not required | 14 days to return deposit | Emergency Tenant Protection Act 576/74 |
North Carolina | - 2 weeks' rent for week-to-week lease agreements - 1½ months' rent for month-to-month lease agreements - 2 months' rent for yearly leases | Trust account or bank bond required | - 30 days to return deposit - 60 days to return deposit if damages exceed 1 month's rent | Article 6 Tenant Security Deposit Act |
North Dakota | 1 month's rent | Escrow account required | 30 days to return deposit | ND Cent. Code § 47-16-07.1 |
Ohio | No regulation | Not required | 30 days to return deposit | Ohio Rev. Code § 5321.16 |
Oklahoma | No regulation | Federally-insured escrow account required | 30 days to return deposit | Okla. Stat. tit. 41 § 115 |
Oregon | No regulation | Not required | 31 days to return deposit | ORS § 90.300 |
Pennsylvania | 2 months' rent | Escrow account required for deposits greater than $100 or any amount held for longer than 2 years | 30 days to return deposit | 68 Pa. Stat. § 250.511a |
Rhode Island | 1 month's rent | Not required | 20 days to return deposit | RI Gen, Laws § 34-18-19 |
South Carolina | No regulation | Not required | 30 days to return deposit | SC Code § 27-40-410 |
South Dakota | 1 month's rent | Not required | 14 days to return deposit | SD Codified Laws § 43-32-6.1 and SD Codified Laws § 43-32-24 |
Tennessee | No regulation | Escrow account required | 30 days to return deposit | Tenn. Code § 66-28-301 |
Texas | No regulation | Not required | 30 days to return deposit | Tex. Prop. Code § 92.101 - 92.110 |
Utah | No regulation | Not required | 30 days to return deposit | Utah Code § 57-17-3 |
Vermont | No regulation | Not required | 14 days to return deposit | 9 V.S.A. § 4461 |
Virginia | 2 months' rent | Not required | 45 days to return deposit | Va. Code § 55.1-1226 |
Washington | No regulation | Escrow account required | 21 days to return deposit | Wash. Rev. Code § 59.18.253, 59.18.260 - 59.18.285 |
West Virginia | No regulation | Not required | 60 days to return deposit | W. Va. § 37-6A-2 |
Wisconsin | No regulation | Not required | 21 days to return deposit | Wis. Stat. ATCP § 134.06 |
Wyoming | No regulation | Not required | - 30 days to return deposit - 60 days if any amount is retained | Wyo. Stat. § 1-21-1208 |
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Here are some helpful definitions for the legal language commonly present in lease and rental agreement forms:
A simple rental agreement form must name the parties signing the lease and where they live. First, you should write down the following:
The “premises” are the exact address and type of rented property, such as an apartment, house, or condominium.
The “term” is the length of time a tenant will rent the residential 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.
An agreement must explicitly list the monthly rental amount and outline the consequences of late rent.
The landlord decides how much to charge for rent, but the cost is usually comparable to other properties in 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 complies with those regulations.
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).
Once you finish discussing the details with your tenant, remember to:
The following lease agreement works for all states except California, Florida, and Washington, DC.
Download: PDF / Word
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.
Your responsibilities as a landlord include the following:
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.