A lease agreement is a legal contract that includes rules and clauses –called lease terms– that define the obligations of a lessee (tenant) and lessor (landlord). Lease terms can range from the simple (the amount of rent due each month) to the more complex (maintenance requirements).
All parties should have a clear understanding of the terms of the lease before signing the lease agreement.
Some of the terms that are covered in a typical lease agreement include the following.
Tenants' names. The full name of every adult who will live in the rental dwelling should be on the lease, and each person should sign the lease agreement. This step makes each tenant responsible for all terms of the contract, including rent payment and use and condition of the property.
Limits on occupancy. The agreement should specify that the unit is the residence of only the individuals who have signed the lease and their minor children. This lease term allows the landlord to evict someone who sublets or otherwise moves into the rental without permission.
Length of lease. The lease agreement should include whether the contract runs from month to month or the typical term of one year.
Rent payments. Other important lease terms are the amount of rent, when it is due, and the acceptable payment methods. Late fees and any charges for bounced checks should be included in these terms.
Deposits and fees. The lease agreement should specify the amount, use, and return procedures for the security deposit. Any non-refundable fees should be spelled out.
Maintenance and repairs. These terms detail the responsibilities of the tenant and the landlord in repairs, cleaning, maintenance, and any alterations of the rental.
Utilities and services. Lease terms should include what utilities (such as water or internet) and services (like garbage removal or landscaping) are part of the lease agreement and which are not.
Access to the property. The residential lease agreement should be clear on when the landlord has the right to access the property and how much notice needs to be given to tenants for maintenance and repair visits.
Illegal activity. The legal terms should include specific language prohibiting disruptive behavior, including excessive noise and illicit activities.
Pets. Lease terms should be clear if pets are not allowed. If pets are permitted, the terms should specify any rules on the type of animals, the size or number of pets, and the removal of pet waste.
Other restrictions. Other lease terms should pertain to the property information and state and local laws, such as rent control ordinances, occupancy rules, health and safety codes, antidiscrimination, home businesses, parking, and rules for changing or ending a tenancy (termination clause).
Disclosures. The lease agreement should also include any disclosures the landlord is required to make. In addition to the security deposit and non-refundable fee information already mentioned, disclosures typically include:
Additionally, some states require landlords to provide tenants with a copy of the state's landlord-tenant code or a summary of the state code.
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