Commonly called a lease agreement, a contract to lease helps set you up for a smoother, more hassle-free rental experience from day one. While creating documents may be one of the least fun parts of property management, knowing how to make a lease agreement is a critical element of any successful landlord-tenant relationship.
Key Takeaways
- A well-written lease helps landlords avoid disputes and legal issues by clearly defining rent terms, responsibilities, policies, prohibited actions, and consequences for violations.
- Lease agreements must include essential items, such as rent details, utilities, deposits, property rules, disclosures, and termination policies, to ensure compliance with state and local laws and protect both landlords and tenants.
- Landlords can create a state-specific, legally binding lease on Apartments.com in minutes that covers everything from rent and security deposits to pets, parking, utilities, and disclosures.
What Is a Lease Agreement?
A lease agreement is the most important legal document that binds you and your tenants together. It describes the terms and conditions that a tenant (lessee) must abide by if they want to rent your property for a fixed period. But this written agreement isn’t just for your occupants; as the landlord (lessor), you are also obligated to follow the contract rules.
Why a Lease Agreement Is Important for Landlords
You need to create a lease agreement because it lays out the responsibilities and obligations for you and your tenants. Here are some other reasons why you need this key document.
Helps you manage critical issues
Landlords have a diverse range of issues they must manage, from pet-related property damages to late rent payments. Leases help you address and manage critical issues more effectively since the rules and consequences are clearly defined. Acting quickly on problems creates a more stable and cooperative relationship between you and your tenants.
Ensures that you adhere to state and local laws
While landlords have a great deal of autonomy over managing their properties, they still must operate within local and state laws. This means avoiding actions like:
- Performing self-help evictions
- Increasing rent during an ongoing lease agreement
- Violating fair housing laws
A properly written lease agreement helps you stay complaint and avoid legal trouble.
Helps you avoid disputes
Having a lease in place gives both you and your renter clear expectations from day one. It documents important details like late fees, maintenance responsibilities, and how damage is handled, so there’s less room for confusion later.
With a lease agreement, everything is spelled out in writing, which helps prevent misunderstandings and keeps conversations productive if questions come up. It’s a simple step that creates transparency, protects everyone involved, and helps your rental relationship run smoothly.
Guarantees your ability to collect and use a security deposit
The security deposit is a safety net that allows you to cover unpaid rent or costly tenant-related damage. However, this is closely tied to the lease as the document outlines the parameters of the security deposit and key details. Having the security deposit written into the lease ensures there are no misunderstandings.
Types of Lease Agreements
Lease agreements are as diverse as the tenants who sign them. Depending on your specific needs, here are the types of lease agreements you can create:
Fixed-term lease
A fixed-term lease is a contract that lasts for a predefined period, typically six to 12 months. At the end of the lease term, you can either renew the lease or part ways with the tenant.
Month-to-month lease
A month-to-month lease is short-term agreement that provides flexibility, since it only lasts for a short amount of time.
What to Include in a Lease Agreement
The exact parameters of a lease agreement can vary widely depending on the needs and expectations of you and your tenants. You should customize the specific details of each contract before both parties sign it, so it’s tailored to the tenancy. These are some of the main elements to include in a lease agreement:
| Lease section | Details (at a glance) | Examples / notes |
| Party information | Full legal names + roles; contact info; all occupants | Include cosigners/guarantors and agents |
| Property details | Address + type; condition notes; included items | List appliances/fixtures/furniture; note HOA/COA |
| Lease term | Start/end dates; renewal terms; holdover/month-to-month | Specify conversion terms after expiration |
| Rent & payments | Amount; due date; first payment date; grace period; methods; deposit | Be explicit about deposit amount and rules |
| Late fees & penalties | Late fee amount + when it applies; returned payment fees | Keep compliant with local limits |
| Utilities & services | Who pays what; what’s included; billing method | Spell out trash/water/gas/electric/internet, etc. |
| Additional fees | Any extra charges (HOA, landscaping, etc.) | Avoid surprises—list each fee clearly |
| Responsibilities | Tenant + landlord obligations | Repairs reporting, cleanliness, maintenance, privacy, etc. |
| Renters insurance | Whether required + any minimums | If required, clarify proof/renewal expectations |
| Property rules | Safety, maintenance, keys, smoking, guests, parking, courtesy | Add “no alterations without approval,” etc. |
| Disclosures | All legally required disclosures | Lead-based paint, flood risk, local requirements |
| Pets | Allowed/not; restrictions; fees/deposits | Note service/assistance animals aren’t “pets” |
| Occupancy & subletting | Occupancy limits; guest limits; subletting policy | Define approval process and constraints |
| Termination & eviction | Grounds; early termination options; fees | Must align with state/local law |
| Governing law | Jurisdiction + precedence of applicable law | “Applicable law controls if conflicts arise” |
| Signatures | Signature lines + dates for all required parties | Include landlord, all tenants, guarantors |
Step-by-Step: Create a Lease Agreement on Apartments.com
Apartments.com provides an easy way to create lease agreements. With our Rental Tools feature, you can easily create a legally-binding, state-specific lease that fits your property and your standards. Here's how to make a lease on Apartments.com in a few simple steps.
Watch the video on how to create a lease agreement below or on YouTube:
Start a new lease
Log into your account and then navigate to the “Residents & Leases” page from the left navigation menu. Select the specific resident you want to create a lease for and select the “Draft a Lease” button at the bottom of the page. Creating a lease takes only minutes, but you can always save your progress and return later to complete the task.
Select a lease duration
First, enter the lease term by selecting a start and end date. In this section, you also choose who the lessor (landlord) is, whether that’s you as the property owner or your business entity.
Review residents and cosigners/guarantors
Next, a list of all residents or guarantors appears for you to review. Verify that all required individuals are listed on the page and add anyone who is missing.
Enter property information
Though your property information is already known from when you listed the property, you need to answer a few additional questions. Specifically, the type of property (single-family or multi-family) and who is responsible for managing the property.
Next, provide an agent’s address and contact information who will receive legal notices. This can be you, another individual, or a business. Many states require landlords to list a designated agent who can accept such notices from tenants, such as notices to terminate or other legal correspondence.
Disclose the monthly rent amount and due date
The monthly rent is one of the key elements of the lease. Input the monthly rent amount, the monthly due day, and the total rent amount that includes all mandatory fees.
Here are a few more questions you’ll need to answer:
- Is this property subject to rent control?
- Will you collect pro-rated rent?
- Will you charge a late fee?
- Will you allow a grace period for the payment of rent?
- Will you charge a fee if a tenant has insufficient funds?
Include the security deposit
Next, indicate if you will collect a security deposit and, if so, the amount.
Answer additional questions about pets and parking
To cover any additional addendums that a landlord might need, information is requested about pets and parking policies at your property. This is your opportunity to add these policies and any relevant details like pet restrictions, pet fees, or parking fees.
Detail any additional fees
Fees depend on the property and landlord, so if there are any you want to add, like monthly hold-over or laundry fees, enter them. There’s also a custom fee area to cover both one-time and recurring fees.
Define the applicable payment methods
Landlords can accept payment in several ways, and these methods must be listed in the lease. So, in this step, select the payment methods that you will accept from tenants:
- Online Rent Payments via Apartments.com
- Check
- Electronic funds transfer
- Other
Outline property utilities and services
State whether utilities are included in the rent or not. Then you can add in the fee you will charge if a resident doesn’t transfer utilities on time.
Add any additional provisions
Select whether you’ll provide any furnishings and/or appliances.
Choose property disclosures
Any required disclosures, like lead-based paint or flood zone disclosures, must be added to the lease. Choose the ones you need so they will be incorporated into the lease.
Fill in additional information
To ensure the lease covers all aspects of your property and policies, there are some additional questions you need to answer:
- Will you require the residents to maintain renters insurance?
- Are residents permitted to have a satellite dish?
- Is smoking allowed on the property?
- Will you supply the resident with a list of rules and regulations?
Add specific stipulations
This optional section allows you to add any agreements that are not already covered in the lease or within state and/or local laws. Consult a lawyer about the additional stipulations to make sure there are no conflicts or issues.
Send the lease out for signature(s)
In no time at all, you’ve created a comprehensive lease that is specific to your property. Now, all you have to do is review it and send it to your tenants. It will be emailed directly to them so they can log in to their Apartments.com user account to view and sign it.
On the “Residents & Leases” page, you can view the lease status, cancel it, continue editing it, or send your resident a signing reminder.
The Benefits of Creating a Lease on Apartments.com
Creating a lease doesn’t have to take hours of your time. With Apartments.com, you can finish in minutes and have a legally-binding, state-specific lease that is tailored to your property and policies. Discover how Apartments.com is a smarter and simpler way to manage leases:
- Effortless lease creation: Forget generic templates as Apartments.com generates state-specific, fully customizable lease agreements that perfectly align with your property and standards.
- Legally binding and secure: Breathe easy knowing your leases comply with all local and state laws and regulations. Apartments.com has partnered with legal experts to ensure leases are legally binding.
- Convenient online signing: Eliminate the hassle of physically signing documents since tenants can conveniently sign the lease electronically.
- Organized and accessible: Avoid misplaced paperwork as Apartments.com keeps all your leases neatly organized and readily accessible for future reference. Simply log in to your account to access them whenever needed.
FAQs
What is an addendum?
An addendum is a provision you include in a lease agreement that allows you to change the contract before it expires.
Can I make my own lease agreement?
Yes, landlords can write their own lease agreements, but starting from scratch often takes significant time and increases the risk of mistakes. Because lease agreements are legally sensitive, many landlords rely on pre-made templates or automated lease tools to streamline the process and avoid errors.
A well-written lease clearly outlines rent terms, property details, rules, and penalties, helping set expectations and maintain accountability. It also helps ensure compliance with state and local laws, protecting you from disputes and potential legal issues down the road.
What is a lease termination letter?
A lease termination letter is a formal written notice, usually from a landlord to a tenant, that the existing lease agreement will end on a specific date. It’s used to clearly communicate the termination date, reason for ending the lease, and any move-out instructions to avoid misunderstandings and keep proper records.
Such a letter typically includes the lease end date, details about the move-out process, and requests like the tenant’s forwarding address, helping ensure both parties follow the lease terms and applicable laws.
Can landlords terminate a lease early?
Landlords may be able to terminate a lease early, but only under certain legal conditions. A landlord can end a lease early with cause if a tenant violates the lease (such as not paying rent, having unauthorized pets or occupants, causing costly damage, engaging in illegal activity, or otherwise breaching terms). In these cases, the landlord must follow state and local laws for notices (like “cure or quit”) and eviction procedures before the lease can be legally terminated.
Landlords may also terminate a lease without cause only if the lease itself includes a specific early-termination clause or if the law permits it. For example, for reasons like selling the property, moving into it themselves, or major renovations. If no termination clause exists, the landlord generally cannot end a fixed-term lease early and must wait until the lease expires and give proper notice per the agreement and local law.
This article is for informational purposes only and does not constitute legal advice. Lease laws and requirements vary by state and local jurisdiction and may change over time.
While Apartments.com provides tools designed to support legally compliant lease creation, landlords are responsible for verifying that their lease agreements meet all applicable federal, state, and local laws.
Consider consulting a qualified real estate attorney or legal professional before finalizing or enforcing any lease agreement.
This article was originally published on May 16, 2022 by Oleander Johnson.
