Finding a standard lease agreement template online is easy, but many lack essential legal elements, making them unenforceable or non-compliant with state laws. To ensure landlords have access to legally binding agreements, Avail provides free, state-specific lease templates that are lawyer-reviewed, customizable, and easily reusable.
Access a proven rental agreement form or keep reading to learn how to create a lease agreement that supports your rental business, sets clear expectations with tenants, and meets your local legal requirements.
The Leasing Process
The leasing process includes creating, reviewing, and signing a lease agreement that outlines the terms of a tenancy.
Here’s what you can expect during this process:
- Landlords create the lease agreement: Leases can be either written or verbal, but written leases are preferred because they are easier to enforce legally. Some states require written leases for agreements that last beyond a certain period, such as three years.
- Tenant information is collected: Before sending the lease, landlords should collect key details about the tenant. This helps ensure that the lease is accurate and includes all important terms and responsibilities.
- Tenants sign first: Usually, tenants review and sign the lease agreement first. This gives landlords the chance to check for errors or make changes before finalizing.
- Landlords sign to finalize the lease: After the tenant signs, the landlord adds their signature. This makes the lease legally binding. Any changes made after signing will require a lease amendment agreed upon by both parties.
Lease Agreement Laws by State
Laws about lease agreements can be different depending on the state or even the county. These differences may apply to written and verbal leases, how leases are renewed, how leases can be broken, and how notices such as non-renewal letters must be given.
Before creating a lease, it’s important to learn about your state’s landlord-tenant laws related to lease agreements.
States include:
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Washington, D.C., Wisconsin
Different Types of Lease Agreements
There are four main types of lease agreements, each suited to different needs and situations:
- Month-to-month lease: Good for tenants who want short-term flexibility. This lease renews automatically each month unless either party ends it. It’s flexible but not as stable as other options.
- Short-term or mid-term lease: These usually last between three and 11 months. They offer more stability than month-to-month leases but don’t require a full-year commitment. They are often used for corporate rentals, student housing, or vacation stays.
- Fixed-term or long-term lease: Often lasting 12 months or more, this type is common and offers stability for both landlords and tenants. Once the lease ends, it can be renewed, changed, or changed to a month-to-month lease if both sides agree.
- Lease-to-own lease: Less common, this lease allows tenants to rent with the option to buy the property later. Some of the rent goes toward the purchase price. This is helpful for renters who need time to build credit or secure financing.
What to Include in Your Lease Agreement
A complete lease agreement should include the following:
- Tenant names: Include the full legal names of all people responsible for the lease.
- Property address and description: Provide the exact address and describe the unit, such as the unit number and any included features.
- Term of lease: List the start and end dates and explain the lease type.
- Rent collection policy: Explain how tenants should pay rent, when it’s due, what the grace period is, and what the late fees are. Be aware of your state’s rules on payment methods.
- Rental amount and fees: Clearly state how much rent is due each month, along with any deposits, move-in fees, or other charges.
- Pet policy: Say whether pets are allowed. If they are, include any fees, restrictions on breed or size, and the tenant’s responsibilities. This doesn’t apply to service animals.
- Smoking policy: Say if smoking is allowed in the unit or only in certain areas. This includes cigarettes and marijuana.
- Subletting policy: Indicate if tenants can sublet the unit and under what conditions.
- Required disclosures: Some states require disclosures such as lead paint warnings or mold notices. Not including these can lead to fines.
- Renewal terms: Explain how lease renewals work, including automatic renewals or whether a new agreement is required.
- Renters insurance: You can require tenants to have renters insurance to cover personal belongings and liability.
- Early termination rules: Describe what happens if a tenant breaks the lease early, including notice requirements and any penalties.
How to Make a Lease Agreement for Free
Here are the steps to create a lease agreement:
1. Collect Information
Create an Avail account and enter your information along with your tenant’s details. Then choose the property for the lease and click on the “leases” tab to begin.
2. Build the Lease
You can either start from scratch, upload an existing lease for digital signing, or store a completed lease. In this guide, we focus on creating one from scratch. Click on “Build from [State] Template” to start with a legally reviewed lease that follows your state laws.
3. Set Lease Terms
Choose from these term options:
- Full year: Good for long-term tenants and consistent income.
- Month-to-month: Better for flexibility.
- Custom end date: Great for seasonal or short-term leases.
4. Enter Rent and Fees
Include rent price, due dates, deposit amount, and other fees. Also, enter where the security deposit will be stored. Most states require a separate account for this.
5. Add Optional Policies
Include extra options to clarify expectations:
- Prorated rent: If the tenant moves in mid-month, calculate the rent based on days occupied.
- Pet policy: Include any deposits or monthly pet rent.
- Smoking policy: Consider a no-smoking rule to protect the unit.
- Month-to-month renewal: You can choose to let the lease convert to a monthly agreement after it ends.
- Renters insurance: Ask for proof of coverage before move-in, especially in areas prone to natural disasters.
6. Review Legal Clauses
Your lease must follow local laws. Our system adds necessary disclosures automatically, but landlords should double-check everything. You can also add custom clauses by upgrading to Unlimited Plus.
7. Add Landlord Contact Info
Enter your contact information so tenants can reach you. If you run your rentals under a business name or LLC, include that information too.
Double-check all lease details to make sure they are accurate and meet legal standards before moving forward.
8. Send Lease for Signature
Once the lease is ready, send it to the tenant’s email for digital signing. The lease cannot be changed after this, so make sure all details are correct.
9. Add Your Signature
After the tenant signs, you’ll be asked to sign as well. The lease is then stored securely for easy access.
10. Set Up Online Rent Collection
Once the lease is finalized, set up rent collection:
- Link your bank account: Keep rental income separate from personal funds.
- Create a payment schedule: Make it easy for tenants to see due dates.
- Submit tax info: This helps with filing taxes later on.
Can I Write My Own Lease?
Yes, landlords can write their own lease agreements. But it’s important to make sure the lease is clear, legal, and enforceable in your state. Your lease should include rent amounts, due dates, deposit policies, responsibilities, and the term.
However, doing this yourself carries some risks. Missing clauses or incorrect language may lead to legal trouble. To reduce risk, consider these options:
- Use a state-specific lease template: These are often lawyer-reviewed and ready to customize.
- Talk to a lawyer: If you write your own lease, have a lawyer check it for legal issues.
Using a trusted, state-approved lease form is the safest way to protect yourself and your tenants.
Get Free Lawyer-Reviewed Lease Agreements
Having a lease agreement that follows the law is a key part of running a successful rental business. Instead of downloading a random template, use a lease that has been reviewed by legal experts—for free.