Residential Lease Agreement

What is a Residential Lease Agreement?

A residential lease agreement is a legally binding contract between the owner of a property and a tenant who wishes to rent it. This contract helps to set out the most important terms and conditions for renting residential property.

A residential lease agreement template is being created between the owner, known as a landlord, and a tenant (i.e., a person who wishes to live in a rented property). A landlord under the residential lease can be an individual or a company, while a tenant should always be a physical individual. It is a common practice when a residential lease agreement is signed by a management company that acts on behalf of a landlord. This is especially the case if a landlord does not have time to deal with tenants or has several properties under administration.

As a rule of thumb, a residential lease agreement form is used to rent a property for a long period of time. Therefore, if you are an owner of a property who wishes to rent it out for a short period of time, it is better to use a short-term rental agreement instead.

A legally binding residential lease agreement template should contain the following key elements:

• duration of rental period (from a few months to a few years);
• amount of monthly rent payments and other additional charges (e.g., utilities bills, county taxes, etc.);
• amount of security deposit;
• detailed rules for property usage (e.g., a landlord may not allow pets within the rented property);
• termination clause and dispute resolution.

Every state law within the USA contains its own rules regarding the content and application of residential lease agreements. For example, when creating an Arizona residential lease agreement form, a security deposit should be returned within 14 business days after the lease termination. Therefore, inclusion of a longer period may violate state laws. Contrary to that, while drafting an Illinois standard residential lease agreement, a landlord has 30 days to end the lease if no deductions are being made, but up to 45 days if they’re providing an itemized statement of deductions, under the Security Deposit Return Act (765 ILCS 710).

Fixed-Term Lease vs Month-to-Month vs Short-Term Rental — which one do you need?

Depending on the planned duration of the lease agreement, type and purpose of the lease and rights of the parties involved, you may need a specific type of the lease agreement. In practice there are four most common lease agreement templates the future landlords and tenants have to choose from – fixed-term lease, month-to-month lease, short-term rental and apartment lease agreement.

How to Write a Residential Lease Agreement?

Writing a residential lease agreement template can be a challenging task. Therefore, we created for you a list of essential tips to keep in mind:

Details of the Parties

When entering a residential lease agreement, make sure you know the landlord. A landlord is a person who owns the property and thus has a right to rent it out. If you sign a residential lease agreement with a management company, ask them if they have the proper rights to represent a landlord. Usually, there should be a kind of services agreement or a simple power of attorney between a landlord and a management company.

The tenants who should sign a residential lease agreement template are individuals that plan to reside in a rented property. Thus, if this is a family, then all family members should be listed as tenants.

Description of the rented property

Another essential pillar to every agreement on lease residential template is a property’s description. It should include:

• size (in sq. ft.);
• detailed address and location;
• details of a parking space (if applicable);
• description/list of all amenities and furniture within a rented property;
• description of a property’s overall condition.

Duration of the lease

The duration of the lease can be any term from a few weeks or months to several years. Parties may also include an automatic prolongation clause in their residential lease agreement template. Once included, a lease is being automatically prolonged for the same period of time after its termination, unless terminated by either party in writing.

It is vital to include a start date for the lease as well—i.e., the date on which a tenant can move in. A start date can be the same date as the date of signing the residential lease agreement template or any other date.

Monthly rental payments

Another key element for every residential lease agreement template is the amount of rent payments. Rent should be paid every month, unless another frequency is agreed upon by the parties. It is also crucial to indicate available payment methods like bank withdrawal, cash, check, etc.

Parties may also set up late fees once a tenant fails to pay rental payments in a timely manner. The way how late fees should be paid by a tenant may differ depending on the state. For example, for a California residential lease agreement, a tenant has 3 days to cure the breach or vacate the property.

Payment of security deposit

A security deposit is used to protect a landlord from possible breach of a residential lease agreement by a tenant. As a rule of thumb, a security deposit is being returned upon termination of the lease. If there is irreparable damage to a property or debts, a security deposit can be used by a landlord to cover in full or in part such damage.

It is crucial to establish the period of time within which a landlord should return a deposit once the lease ends. Some state laws, however, provide their own regulation. For example, when creating a Florida residential lease agreement, a security deposit should be returned within the first 15 days after the lease termination. This is a maximum period of time that cannot be overthrown by a landlord or tenant. Some other states may have a longer period of time for a landlord to return a deposit. For instance, according to a standard Texas residential lease agreement, a landlord has up to 30 days to make a return.

Utilities bills and charges

Utilities are not included in the monthly payment and should be covered by either party. Thus, from the very outset, parties should agree on every separate charge and bill they have to split in between. The most common bills and charges a rental property may have are the following:

• electricity and water bills;
• phone and Wi-Fi;
• gas;
• country or property tax;
• trash collection (if applicable), etc.

Household rules and restrictions

According to a residential lease agreement, a tenant can use a rented property for residential purposes only. Besides that, a landlord may wish to consider the following limitations:

• smoking policy;
• pets policy;
• maintenance responsibility (usually a landlord should be responsible for major repairs, while a tenant for minor repairs);
• quiet hours (e.g., no parties after 8 pm);
• guest policy (e.g., a guest cannot stay longer than one night).

Termination clause

A good residential lease agreement template should include a termination clause. This clause defines when and how the lease should be terminated. As a general rule, a residential lease agreement expires automatically upon its termination date.

If, however, there is no termination date, the lease agreement can end by either party’s will. This could be done by sending the other party advance written notice about the termination. For example, under Florida Statute §83.56(3), a landlord may terminate for nonpayment of rent after the default continues for just 3 days, excluding Saturdays, Sundays, and legal holidays, following written demand. Florida’s period is one of the shortest in the country.

Signatures of the parties

For a residential lease agreement template to become a legally binding document, it should be signed by both parties. It does not matter if a document is signed by hand or using an e-signature. It is highly recommended for both parties to keep at least one copy of the signed residential lease agreement for their internal record. If any dispute pops up in the future, you always have written proof at hand.

State-by-State Security Deposit Return Deadline

State legislation differs significantly regarding the timeline for the return of the security deposit upon termination of the residential lease agreement. The average return period for the security deposit varies between 14 to 60 days depending on the state, and it being counted from the moment of the lease termination, tenant’s vacation of the property or other events.

Failure to return the security deposit on time is a serious offence and violation of the residential lease agreement.

State-by-State Notice Periods for Nonpayment of Rent

The amount of the termination notice for the breach of the residential lease agreement varies significantly from state to state. Some states may establish a mandatory cured period to remedy the breach and repay the rent, while others allow landlords proceed directly with termination.

What are federal disclosures every landlord must include in the lease in 2026?

Before signing the residential lease agreement, the landlord must make a number of important federal and state disclosures regarding the conditions or usage of the leased property. All such disclosures should be subsequently incorporated in the text of the final lease agreement.

Federal Lead-Based Paint Disclosure

This is a federal disclosure (42 U.S.C. §4852d, implementing regulations at 24 Code of Federal Regulations, Part 35) for all housing built before 1978 that may potentially contain lead-based paint.

Lead from paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-1978 housing, lessors must disclose the presence of known lead-based paint and/or lead-based paint hazards in the dwelling. Lessees must also receive a federally approved pamphlet on lead poisoning prevention.

Florida Radon Gas Disclosure

For any rental property located in the state of Florida, landlord must disclose the level off radon gas accumulated in the property in line with applicable state guidelines. Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time.

Such a disclosure is being made in a separate Florida Radon Gas Disclosure statement that should be attached to the present document.

DOJ Notice in California

Before signing this lease agreement, landlords must refer tenants to the publicly available register of sexual offenders. This is done to properly inform potential tenants regarding any sexual offenders registered or residing in the area where the leased property is located.

Mutual Promises in Minnesota

Under the Minnesota laws (MN Statute Section 504B.206 (1)(e)) landlord and tenant must exchange mutual promises that neither will unlawfully allow within the premises, common areas, or curtilage of the premises (property boundaries):

• controlled substances, prostitution or prostitution-related activity;
• stolen property or property obtained by robbery; or
• an act of domestic violence.

Common mistakes landlords make in a residential lease – you definitely want to avoid

If when your final residential lease document is fully compliant with state and federal laws, there are lots of situations in which landlords can turn wrong direction and violate statutory rules:

Deposit Amount

Depending on the applicable state laws, the maximum amount of the deposit varies significantly. When there is a statutory maximum cap, the landlord cannot charge above such a cap. For example, in the state of Arkansas, the security deposit shall not in exceed of two months’ rent, while in Delaware it should not exceed on months’ rent for tenancies last a year or more for unfurnished apartments and with no limitation for a security deposit in month-to-month tenancies.

Escrow Account

Depending on the state and the number of residential units rented out by the landlord, some state legislation may require the landlord to keep their deposit at special escrow account:

• Illinois. Illinois requires a separate account only once a landlord’s building reaches 25 or more units. Under the Security Deposit Interest Act (765 ILCS 715), if a landlord’s building reaches 25 or more unit, the landlord must hold deposits in a separate, federally insured account at an Illinois financial institution and pay the tenant interest annually if the deposit is held more than six months.
• Georgia. Under O.C.G.A. §44-7-31, landlords who manage 10 or more rental units, or who use a property manager, must place the deposit in an escrow account at a bank or lending institution regulated by the state or federal government, and must inform the tenant in writing where it’s held.
• Florida. Florida works a little differently than a simple unit-count threshold. Under Florida Statute §83.49(1), every landlord who collects a deposit — regardless of how many units they own — must hold it one of three ways: in a separate non-interest-bearing account, in an interest-bearing account (paying the tenant at least 5% simple interest annually), or by posting a surety bond. Where the 5-unit count actually matters is narrower than “does the separate-account rule apply at all”: under §83.49(2), only landlords renting five or more individual dwelling units are required to give the tenant written notice disclosing where and how the deposit is being held. Below five units, the underlying obligation to segregate the funds still applies — the landlord just isn’t required to formally notify the tenant of the account details.

Get a customized Residential Lease Agreement Template at Faster Draft

Faster Draft allows you to customize a standard residential lease agreement for any state. Follow a few simple steps below:

1. Press the button “Create Document” to open the questionnaire.
2. Select the name of the state, where property is located.
3. Answer a few simple question in the form.
4. Select a document’s format—Residential Lease Agreement PDF or Word.
5. E-sign the document for free (for landlords).
6. Make a payment.
7. Your personalized standard residential lease agreement template is ready for immediate download.
8. Print the document out in two copies.
9. Make the tenant to sign both copies of the document. The document is only valid once is being signed by both parties.
10. Each party must keep one signed copy of the agreement for the record.