Our tenants recently informed us that they plan to renew with us for another year.   When they first started renting from us 4 years ago, I was in the midst of a law course as part of my MBA program.  I decided to put some of the information I was learning to (good?) use.  I developed the lease agreement that follows on my own based on information from that class, conversations with other landlords, and some general themes from other leases I had seen.

Please note that I am not an attorney.  If you use this agreement in whole/part, you do so at your own risk.  Realize that states, counties, and communities have differing laws governing rental real estate.  These laws frequently include limitations on:

1. The amount you can require for a security deposit.
2. How you handle security deposits (may be required to be in a separate interest-bearing account).
3. What you use security deposits for (types of qualified repairs).
4. The amount of rent  you can charge up front (frequently limited to two months rent).
5. The amount of any lease-break fees you charge (frequently limited to two months rent, or the amount you actually lose.  e.g. if you find new renters, you cannot double-charge for the property)
6. The amount you charge for late fees.
7. Restrictions you can make in terms of the types of tenants you would rent to (e.g. you probably cannot include age / marital status restrictions.  Many other classes are also protected).
8. Auto-renewal clauses.
9. How/when/why you enter the property after it is occupied.
10. Many many more things.

Your state housing authority should have all the information you need.  Many housing authorities are now available online.  You can use Google Search at the top of this page to find the authority you need (just search for “rental regulations [state name]” or something like that).

Please feel free to leave feedback on anything you would add/remove from this agreement.  I’ve been polishing it for 4 years, but I’m sure I didn’t think of everything. 

The fun picture above is a birdhouse “for rent.” Courtesy of tifotter.

Fixed Term Lease Agreement (Continuing Occupancy)

(1) Agreement: This lease agreement is being entered into on Date between Landlord(s) Name(s) (hereinafter Owner(s), Landlord(s), or Lessor(s)) and Tenant(s) Names (hereinafter Tenant(s), Resident(s) or Lessee(s)), each being competent and capable under the laws of the County of County and the state of State to enter into legally binding agreements related to real property, and the renting and occupying thereof.

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