What Is a Lease Agreement?
A lease agreement is a written document that officially recognizes a legally binding relationship between two parties—a landlord and a tenant.
Alternative Documents
This page covers residential agreements—click on the following link if you’re looking for information about commercial lease agreements.
A simple residential lease agreement in writing will identify the following basic elements:
- Premises: a house, apartment, condo, basement, or attic
- Landlord: the owner of the Premise, aka “Lessor”
- Tenant: renter who wants to live in the Premises, aka “Lessee”
- Rent: the amount of money paid by the Tenant to the Landlord
- Term: length of time the Tenant has the right to stay on the Premises
As a reference, people often call this document by other names:
- Rental Contract
- Lease Form
- Tenancy Agreement
Lease agreements are not limited to the above. It may also be used to cover these additional Premises:
- Duplex
- Townhouse
- Room
- Mobile Home
- Vacation rental
- In-law suite
- Other living spaces
- Rent-to-own options
If you’re looking for an alternative to leasing out your place, there is also the option of being a host on Airbnb for guests instead.
When Do I Need a Lease Agreement?
When a formal relationship exists between two parties, the law recognizes that both the Landlord and Tenant have a special set of rights and obligations.
A lease agreement has the added advantage of laying out possible problems that might occur and then detailing possible solutions available to the Landlord and Tenant.
In contrast, an oral agreement (verbal, spoken, or word of mouth) is difficult to enforce in a court and is unlikely to accurately capture important details over time. Memories fade, people remember different things, and sometimes we understandably change our minds because circumstances change.
A written version of a lease agreement, however, serves as a constant reminder to everyone, including you and the court, about what everyone agreed to at the beginning of the relationship.
Here are a few examples of what a Landlord or Tenant may agree to in a simple lease agreement:
The Landlord promises to:
- Repair and maintain the air conditioner or heater
- Respect the Tenant’s privacy and not make any surprise visits or allow anyone else to use the condo (“Quiet Enjoyment”)
- Provide a safe and clean home to the Tenant for the Term of the Lease
- Return the Tenant’s Security Deposit (with interest if required) if the Tenant treats the Premises like their own and it is still in good condition at the end of the lease
- Tell the Tenant in advance if they need to enter the Premises to fix something or show someone the property
The Tenant promises to:
- Pay the Landlord on time each month on a specific day
- Pay the utility company directly for light, gas, heating, and water
- Live in the home only with their spouse, children, and maybe even their parents or grandparents (“immediate family”)
- Not have a dog, cat, chinchilla, pork belly pig, or pet goat in the house without first asking the Landlord or paying a small fee (“Pet Policy”)
- Not start an illegal business like a meth lab or human trafficking scheme (only for “residential” and “lawful” purposes)
In contrast to a verbal, spoken, or oral agreement, an agreement in writing clearly spells out the detailed promises between the Landlord and Tenant and also explains what should happen if they break their promises to each other. If you’re planning on running a landlord business professionally, keep in mind that these promises carry the full weight of the law.
How Legal Templates makes it easier for you:
Step 1: Create Your Lease Agreement – generate a PDF of the document using our easy form builder that you can print or email to the other party for review as you hash out the details.
Step 2: E-Sign & Share – digitally sign your name and allow the other party to sign electronically. E-signatures are validly recognized in most states.
Step 3: Save & Store – we save a digital copy of your signed agreement and store a copy for both parties on our secure server.
Related Documents
- Roommate Agreement: As an official written document, the Roommate Agreement clearly outlines responsibilities and expectations.
- Commercial Lease Agreement: A Commercial Lease Agreement is a formal document between a landlord and a tenant to rent business property.
- Lease Termination: A Landlord or Tenant can use this document to end an existing lease or rental agreement.
- Vacation Rental Short Term Lease Agreement: Thinking of leasing your property to holiday-makers or short-term visitors? Here’s how you can create a vacation rental short-term lease agreement.
- Land Lease Agreement Template: A land lease is an agreement between the owner of vacant land or property and an individual or entity who wants to develop or improve the property.