Generate Rental / Lease Agreement

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Residential Lease Agreement

What is a lease agreement?

A lease agreement is a legally binding contract between a landlord and tenant that outlines the terms by which the tenant can rent property from the landlord, such as the duration of the lease, the monthly rent amount, and maintenance responsibilities.

Who needs a residential lease agreement?

Anybody involved in leasing a property should have a residential lease agreement that defines the terms of the agreement and keeps all involved parties protected by law.

These individuals include property managers looking for tenants and vice versa, social service providers looking for supportive housing, real estate agents, and anyone renting or looking to rent a property.

What is the difference between a lease and a rental agreement?

In the case of real estate or apartments, a rental agreement typically provides for tenancy for a short period of time, usually 30 days.

Unless the renter or landlord provides a move-out notice, the lease is automatically renewed.

The terms of the agreement can also be changed each month.

1. Tenant Views the Space

Before a lease agreement is drawn up, the tenant will usually view the space and see if it’s acceptable to their living standards.

If they like it, they will make an offer to the real estate agent, manager, or landlord.

The offer will usually be based on the monthly rent amount.

2. Rental Application

Any offer made will require the tenant to authorize a rental application and pay a small fee (see maximum amounts ($) by state).

This gives consent to the landlord to legally perform a credit and background check.

3. Landlord Runs a Consumer Report

The landlord is highly recommended to run a consumer report that, depending on the state, will allow them to view the tenant’s credit and background reports.

For example, states such as Washington and New Jersey do not allow a landlord to use an applicant’s criminal record against them.

Recommended Services

  • Limited Consumer Report ($21)
  • Detailed Consumer Report ($40)

4. Verify References

On the completed rental application, the tenant should have listed references such as past employers and landlords.

The landlord should contact the individuals provided via phone and ask about the character of the tenant and if they have paid rent on time during their tenancy.

5. Approving the Tenant

If the tenant is approved, a lease agreement should be written by the landlord in accordance with the terms negotiated.

The main negotiated items of a lease are the following:

  • Monthly Rent Amount ($) – How much the tenant has to pay and due on the 1st of each month.
  • Security Deposit – This is determined by the landlord but cannot be more than the maximum ($) state requirement.
  • Utilities – Such as electricity, water/sewer, cable, internet, heat, etc.
  • Fee(s) – Such as parking, pets, trash, etc.
  • Move-in Date – The day the tenant will take occupancy.
  • Term – A standard lease is 12 months but can be any agreed-upon term.

6. Lease Signing

When both parties sign the lease it becomes legally binding until the end of its term. The most common ways to sign are in-person or electronically (DocuSign or eSign).

Tenant’s Obligations (4) – When signing, the tenant is commonly required to pay:

  1. First (1st) month’s rent;
  2. Security deposit;
  3. Last month’s rent; and
  4. Any other fees that are due during the 1st month of occupancy.

Landlord’s Obligations (3) – When signing, the landlord is responsible for providing:

Lead-Based Paint Disclosure – Required if the residence was built prior to January 1, 1978, to disclose the possibility of hazardous paint on the premises.

Move-in Inspection Checklist – Prior to or when moving in, the tenant and landlord should inspect the property and write down any existing damage.

Photos should be taken and documented with timestamps. This is required in 17 states.

State Disclosures – Any disclosures required under state law.

7. Taking Occupancy

Access to the property is granted on the 1st day of the lease term (unless otherwise agreed).

If the tenant moves in before the start of the term, the tenant pays rent based on the pro-rata number of days entering early on the property (e.g. if the tenant moves in 10 days early and the rent is $1,500/mo, the tenant is obligated to pay $500).

8. End of the Lease

At the end of the lease period, the landlord must decide whether to renew the lease.

If the landlord chooses not to renew, the tenant is required to move out and provide their forwarding address.

Security Deposit Laws

StateMaximum ($)ReturningStatute
 Alabama1 month’s rent14 days if the tenant leaves on time, 30 days if not§ 35-9A-201(a), 35-9A-201(b)
 Alaska2 months’ rent1 month’s rent is 62 years or older, and 2 months’ rent if younger§ 34.03.070(a), § 34.03.070(g)
 Arizona1.5 months’ rent14 days from move-out inspection (excl. weekends and holidays)§ 33-1321
 Arkansas2 months’ rent60 days from termination of tenancy§ 18-16-304, § 18-16-305
 California2 months’ rent (unfurnished), 3 months’ rent (furnished)21 days from the move-out date1950.5
 ColoradoNo limit1 month if mentioned in the lease, 2 months if not§ 38-12-103
 Connecticut1 month’s rent for 1-year leases. No limit to all others30 days from the move-out date or 15 days from receiving the tenant’s new address§ 47a-21
 Delaware45 days from the end of the tenancy20 days from the termination dateTitle 25 § 5514
 FloridaNo limit30 days if deductions, 15 days if no deductions§ 83.49(3)(a)
 GeorgiaNo limit1 month from the termination date§ 44-7-34
 Hawaii1 month’s rent (excluding pet fee)14 days from the termination date § 521-44
 IdahoNo limit30 days if stated in the lease, 21 days if not§ 6-321
 IllinoisNo limit30 days if deductions, 45 days if no deductions765 ILCS 710
 IndianaNo limit45 days from the termination date§ 32-31-3-12
 Iowa2 months’ rent30 days after the tenant has vacated§ 562A.12
 Kansas1 month’s rent (unfurnished), 1.5 months’ rent (furnished)30 days from the termination date§ 58-2550
 KentuckyNo limit60 days from the lease termination date§ 383.580(7)
 LouisianaNo limit1 month from the termination dateRevised Statute 9:3251
 Maine2 months’ rent30 days if the lease is fixed-period, 21 days if tenancy-at-will§ 6032, § 6033
 Maryland2 months’ rent45 days from the termination date§ 8–203
 Massachusetts1 month’s rent30 days after the tenant has vacatedChapter 186, Section 15B
 Michigan1.5 months’ rent30 days from the end of occupancy§ 554.602, § 554.609
 MinnesotaNo limit3 weeks from the termination date§ 504B.178
 MississippiNo limit30 days from the end of the tenancy§ 89-8-21
 Missouri2 months’ rent30 days from the termination of tenancy§ 535.300
 MontanaNo limit30 days if deductions, 10 days if no deductions§ 70-25-202
 Nebraska1 month’s rent (excluding pet fee)14 days of move-out§ 76-1416
 Nevada3 months’ rent1 month’s rent for leases 1 year and under. No limit for residential leases more than 1-yearNRS 118A.242
 New Hampshire1 month’s rent or $100, whichever is greater30 days, 20 days if the property is shared with the landlordRSA 540-A:6, RSA 540-A:7
 New Jersey1.5 months’ rent30 days from the termination date§ 46:8-21.2, § 46:8-21.1
 New Mexico1 month’s rent unless the deposit or advance is for a seasonal-use dwelling unit30 days from the termination date§ 47-8-18
 New York21 days from the tenant’s move-out date14 days after the tenant has vacatedEmergency Tenant Protection Act 576/74(f), § 7-108 (e)
 North Carolina2 months’ rent, for tenancy-at-will only 1.5 months’ rent30 days if no deductions, if deductions then an additional 30 days§ 42-51, § 42-52
 North Dakota1 month’s rent for no pets, 2 months’ rent if pets30 days from the termination date§ 47-16-07.1
 OhioNo limit30 days from the termination date§ 5321.16
 OklahomaNo limit45 days from the termination date§ 41-115(B)
 OregonNo limit31 days from the termination date§ 90.300
 Pennsylvania2 months’ rent30 days from the termination date§ 250.511a, § 250.512
 Rhode Island1 month’s rent20 days from the termination date§ 34-18-19
 South CarolinaNo limit30 days from the termination date§ 27-40-410
 South Dakota1 month’s rent14 days if no deductions, 45 days if deductions§ 43-32-6.1, § 43-32-24
 TennesseeNo limit30 days from the termination date§ 66-28-301
 TexasNo limit30 days after the tenant has vacated§ 92.103
 UtahNo limit30 days from the termination date§ 57-17-3
 VermontNo limit14 days, 60 days if a seasonal property§ 4461
 Virginia2 months’ rent45 days from the termination date or the date the tenant vacates the dwelling unit, whichever occurs last§ 55.1-1226(A)
 WashingtonNo limit21 days from the tenant’s vacancy date§ 59.18.280
West VirginiaNo limitImmediately§ 37-6A-2
 WisconsinNo limit1 month’s rent for leases 1 year and under. No limit for residential leases of more than 1-year§ 134.06
 WyomingNo limit30 days from lease termination or 15 days from receiving the tenant’s forwarding address, whichever is lesser§ 1-21-1208(A)
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