How to Create a Lease Agreement Form

Creating a solid lease protects you from unnecessary misunderstandings down the road.

A lease is a legal document different than a rent agreement, providing both the landlord and tenant security and commitment beyond a month-to-month guarantee. A solid lease holds both parties to stipulated rights and responsibilities. A lease agreement states a specific term of occupancy at a specific monthly cost. During the period of the lease both tenant and landlord are bound by the terms of the written and signed document, unless changes are made by agreement or at the expiration date of the lease.

Instructions

1. Research your state rental and leasing laws to ensure your lease is valid. Seek advice from an attorney if your lease will include specific legal language relating to disputes, rights and obligations of both parties.

2. Provide the names of both the landlord and the tenant. Include the names of everyone who will be tenants --- both husband and wife or roommates. This ensures all parties with an interest in the property are held accountable.

3. Outline any occupancy restrictions. These may include number of tenants, ages, pets and your policy on subletting the rental property.

4. Establish rental costs and responsibilities. This section would include the day the rent is due, payment forms accepted -- whether cash, personal check, money order or credit card -- along with returned-check fees and any late fees. Include the amount of the security deposit and provisions for the deposit such as an extra charge for pets, what can be deducted and when it will be returned to the tenant. Some states require a landlord to pay interest on money held. If this is the case in your state, include this information on the lease.

5. Specify the term period of the lease. Include the exact dates the lease runs and whether the lease automatically renews at the end of the term, converts to month-to-month or specific days notice either party must give to renew or drop the lease before the expiration date.

6. Document all expectations and responsibilities of both the tenant and yourself. Include specific duties related to repair and maintenance. Spell out what a tenant may or may not do without specific permission such as painting, nails in walls, wiring or altering any part of the premises. Clearly state the premises must be kept clean and in good repair. Provide contact numbers and instructions to advise you immediately of any conditions that warrant your attention.

7. Advise the tenant of all applicable rights and laws related to you entering the premises. These may include to make repairs, show property to prospective tenants or buyers, or to inspect the property. Include any laws related to notice time that must be given to enter the property or in the case of an emergency, a waiver of notification.

Tips & Warnings

• Many standard lease forms are available online to use or refer to. It may be worth your while to have a real-estate attorney review your lease to ensure terminology is clear, legal and will stand up in court if necessary.

References

• AllBusiness: What's the Difference Between a Rental Agreement and a Lease?
• American Apartment Owners Association: How to Create a Solid Lease Agreement