Lease Agreements

A lease agreement is a legally binding contract between a landlord and tenant for the rental of property. It defines the rights, responsibilities, and obligations of both parties for the duration of the tenancy. Understanding lease terms protects both landlords and tenants from disputes and unexpected obligations.

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Lease vs Rental Agreement

Lease Fixed-term agreement, typically 12 months. Terms remain constant throughout the period. Neither party can change terms or terminate early without cause or penalty. Month-to-month rental agreement Automatically renews each month. Either party can terminate with proper notice (typically 30 days). Landlord can change terms with notice. Both are legally binding. The choice affects flexibility and stability for both parties.

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Core Components

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Rules and Restrictions

Leases typically include rules governing tenant conduct and property use. Common restrictions:

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Landlord Obligations

Leases and state law require landlords to: Habitability

• Maintain safe, livable conditions
• Provide working plumbing, heating, electrical
• Keep common areas clean and safe
• Address pest infestations
• Comply with building codes

Repairs

• Make necessary repairs within reasonable time
• Respond to emergency maintenance promptly
• Maintain appliances included in lease

Privacy

• Provide proper notice before entry (typically 24-48 hours)
• Enter only for legitimate purposes
• Respect tenant’s quiet enjoyment

Security deposits

• Return deposits within state-required timeframe
• Provide itemized deduction statements
• Hold deposits as required by state law

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Tenant Obligations

Leases typically require tenants to: Payment

• Pay rent on time
• Pay utilities as agreed
• Pay for damages beyond normal wear

Property care

• Keep unit clean and sanitary
• Dispose of trash properly
• Report maintenance issues promptly
• Not damage property intentionally
• Not disturb other tenants

Compliance

• Follow lease rules
• Comply with building rules
• Not engage in illegal activity
• Allow landlord access with proper notice
• Not sublet without permission

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Maintenance and Repairs

Leases should clarify maintenance responsibilities. Typically landlord responsibility:

• Structural repairs
• Major systems (HVAC, plumbing, electrical)
• Appliances provided by landlord
• Common areas
• Pest control (in most states)

Typically tenant responsibility:

• Light bulbs
• Minor unclogging (depending on cause)
• Damage caused by tenant
• Appliances owned by tenant
• Lawn care (single-family, if specified)

Emergency repairs: Leases should specify how to report emergencies and expected response times. Emergencies typically include:

• No heat in winter
• No water
• Gas leaks
• Flooding
• Broken locks or security issues

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Termination and Renewal

End of lease term:

• Some leases require notice to terminate even at end of term
• Others auto-renew without notice
• Many convert to month-to-month

Early termination: Tenants may be able to terminate early with:

• Early termination fee (often 1-2 months rent)
• Finding replacement tenant
• Mutual agreement with landlord
• Legal justification (habitability, military deployment, domestic violence in some states)

Breaking lease without cause typically results in liability for remaining rent, though landlords must mitigate damages by seeking new tenants. Non-renewal: Landlords can typically decline to renew at lease end without cause (except where prohibited by local rent control). Proper notice is required.

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Security Deposit Terms

Security deposits are heavily regulated by state law. State limits: Many states cap deposits at 1-2 months’ rent. Know your state’s limit. Allowable deductions:

• Unpaid rent
• Damage beyond normal wear and tear
• Cleaning if unit not left reasonably clean
• Unreturned keys or access devices
• Other costs specified in lease and allowed by law

Normal wear vs damage:

• Faded paint from sunlight: wear
• Holes in walls: damage
• Worn carpet in traffic areas: wear
• Stained carpet from spills: damage
• Loose door handles from use: wear
• Broken windows: damage

Return timeline: States require return within specific periods (typically 14-30 days). Landlords must provide itemized deduction lists.

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Problematic Lease Terms

Some lease provisions may be unenforceable or signal problems. Potentially unenforceable:

• Waiving landlord’s duty to maintain habitability
• Waiving tenant’s right to sue
• Excessive late fees
• Automatic lease renewal without notice
• Waiving security deposit protections
• Unreasonable entry provisions

Red flags:

• No written lease (risky for both parties)
• Vague or missing terms
• One-sided provisions favoring only landlord
• Excessive fees for everything
• Unreasonable restrictions
• Penalties without cure periods

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Lease Addendums

Common additions to standard lease forms: Pet addendum

• Pet deposit or fee
• Pet rent
• Breed or size restrictions
• Liability requirements
• Rules for pet behavior

Move-in/move-out inspection

• Documents property condition at start
• Provides baseline for deposit deductions
• Should be signed by both parties

Lead paint disclosure

• Required for pre-1978 housing
• Must provide EPA pamphlet
• Disclose known lead hazards

HOA rules

• Tenant agrees to follow HOA rules
• Tenant acknowledges receipt of rules
• Consequences for violations

Roommate addendum

• Adds or removes roommates
• Clarifies joint and several liability
• Updates lease parties

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Before Signing

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When to Seek Legal Review

Consider attorney review for:

• Commercial leases
• Unusual or complex terms
• Lease modifications or amendments
• Disputes during tenancy
• Eviction situations
• Leases with significant financial commitment

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