Lease and Rental Agreement Basics
Your lease or rental agreement and the security deposit you require must comply with your state and local laws. The document cannot contain language that attempts to take away any of your tenant's legal rights — to file complaints, sue for liability or injury, or get the security deposit back promptly if the unit is left in good condition.
How much the tenant pays for the security deposit is usually limited by the state and local government. Some communities require you to pay interest on your tenant's money.
Agreements that you'll give a rent rebate for work performed should always be a separate document signed by both parties. It should never be included in the lease. If it is, your tenant might take it for granted that rent is automatically $25 less even for those months when no work was performed.
Preprinted Leases and Rental Agreements
Many landlords like to use preprinted forms available through professional associations and several online companies. You might find a multipurpose document that can be used for either a lease or rental agreement — you cross out the wording that doesn't apply — or you might get two separate forms. They have been prepared by experts and give you the security of knowing that the lease or rental agreement is legal.
When you use a preprinted form, you fill in the blanks. Start out by writing in the complete address of the unit and your full name, address, and phone number. You can cross out parts that don't apply and substitute or add whatever you choose. (Make sure that both you and the tenant initial all changes made by hand.) If you make changes, however, be wary of adding anything illegal to the form. If in doubt, check with your local landlord association or with your attorney. Some of the forms available have been prepared by attorneys and are specifically targeted to individual states.
Getting Signatures
You should prepare two copies of the lease or rental agreement and any attachments, one for you and one for your tenant(s). All copies should be signed by you and by all adults who will be living in the unit, including the tenant's spouse or roommate(s). It's a good idea to check their signatures against the signatures on their driver's licenses.
It's better to use a preprinted lease or rental agreement and cross out paragraphs that don't pertain to what you are offering in your unit than it is to write your own document from scratch. Without legal training or years of experience as a landlord, you might inadvertently use language that a court might interpret as being prejudicial or unenforceable.
Make sure that you and your tenant(s) have initialed any changes made in the lease, as well as specific clauses that say that your tenant was informed verbally, as well as in writing, about certain provisions. You don't want a tenant to say later, “I didn't know — you never told me.”
If you make many changes and things are difficult to read, it's a good idea to replace it with a new lease or rental agreement. Make sure all copies of this new version of the document are signed by you and your tenant(s).
How old does a tenant need to be to sign a lease?
Anyone eighteen and older can sign a lease or rental agreement. If your prospective tenants are under legal age, you should require that they bring in a cosigner. If you later find out that a tenant lied about his age and signed the document, it is invalid.
Get Everyone's Name
The lease or rental agreement should contain the full names of everyone eighteen and older who will occupy the unit. It should state the date the lease or rental agreement begins, when the tenants must start paying rent, and the date on which it ends — usually the last day of the month. If no dates are specified, it's considered that you have given the tenant a month-to-month agreement.
