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A lease agreement is a legal document between a landlord and tenant that lays out the terms and conditions of renting property. While rental agreements usually dictate a short-term rental period like a month to month, a lease agreement is generally used for long-term rentals over six months.
Lease agreements are standard for both residential rentals and commercial rentals. In both scenarios, there is usually an option to renew a lease after the initial period ends.
Leases will vary based on the property and the needs of the landlord and the tenant. Most leases will include basic information like:
Leases are essential when renting a property because they explain the responsibilities and expectations for the landlord and tenant. In some states, lease agreements are mandatory. Still, even if they are not required, they will help both parties protect their interests and avoid disputes.
Without a lease agreement, you may be at risk of losing rent money, liability for illegal activity on the property, or expensive repairs for property damage. Whether renting out studio apartments in a residential area or a commercial building for business, you are encouraged to have an enforceable lease agreement. If you have questions about what makes a lease agreement legally enforceable and what you are required to include in a lease agreement, consider contacting a real estate attorney.
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Templates for lease agreements are widely available online; however, it is important to know how to write a lease agreement and what information must be included. Even if you decide to draft your own lease agreement, it is good practice to have it reviewed by an experienced attorney before executing.
To write a lease agreement, follow these steps:
Step 1: Outline your lease agreement. Lease agreements should be organized, clear, and easy to read for both parties. One way to ensure clarity and readability is to begin with an outline. Each section should have a header, and you can include subheadings as well. Some headings you may want to consider in your lease include:
Your headings should be in bold font or underlined, so they stand out and can quickly be located in the document. For other heading ideas, you can search for lease agreement templates.
Step 2: Determine important provisions. You will want to make a list of all the conditions that your lease should address. What rules would you like enforced, and how would you like the rental to operate? After you come up with a list of provisions, you can categorize them under your headings.
Step 3: Construct your lease clauses. Each provision needs to be detailed and include all necessary information. This is the process of turning provisions into clauses. Each clause must be enforceable, so you may want to check with an attorney to ensure that the clauses contain all information required to form a legally binding agreement.
Step 4: Consult local laws or a local real estate lawyer. State laws may dictate what provisions and clauses can be included in a lease agreement. Check your local laws or have a knowledgeable attorney read over your lease agreement to ensure that all provisions follow the law and can be upheld in court.
Step 5: Formatting and fine-tuning. Your lease should include formatting elements like a title and a signature section. Go through your document to ensure that you have all necessary headings, provisions, clauses, and other elements that make a lease agreement professional and legal.
For more information about how to write a lease, check out this article.
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What gets included in the lease agreement will vary based on the type of lease agreement and the specific agreements between the landlord and tenant. Most leases will include the following basic information:
Several different types of lease agreements can be used in both residential and commercial real estate. Five types of lease agreements that are commonly used for commercial properties include:
It is possible to draft your own lease agreement, but you are leaving yourself open to issues. Leases need to include specific information to be legally binding, so when you prepare your own agreement without the help of a legal professional, you risk missing essential clauses or provisions.
If you are going to draft your own lease agreement, you are highly encouraged to hire a real estate lawyer to review the lease. An experienced attorney will know if you have missed any crucial provisions that may leave you open to financial loss or legal liabilities.
Do you have questions about how to write a lease agreement and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from experienced real estate lawyers specializing in writing lease agreements.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Talin has over a decade of focused experience in business and international law. She is fiercely dedicated to her clients, thorough, detail-oriented, and gets the job done.
Dual Qualified New York Attorney & Enrolled NZ Barrister & Solicitor
I am a lawyer who helps small businesses, nonprofits, and startups with a wide variety of agreements, corporate formation, and corporate governance. I earned my BA from Tulane University and my JD from the University of Chicago Law School. Before starting my own practice, I worked at an international law firm in New York City. Outside of work, I am on the board of the nonprofit Seattle REconomy (which runs the NE Seattle and Shoreline tool libraries) and I enjoy gardening, baking bread, and outdoor activities with my spouse and two dogs.
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