Key takeaways
- A lease cannot override state landlord-tenant law, so start from a form drafted for your state and treat any clause that conflicts with the statute as unenforceable.
- Security deposit caps, return deadlines, and penalties vary widely by state; know yours before you collect a dollar.
- Pre-1978 rentals require the federal lead disclosure package: the EPA pamphlet, known-hazard disclosure, a signed Lead Warning Statement, and three years of record-keeping.
- Electronic signatures are generally valid under the federal E-SIGN Act, but eviction and default notices fall outside it and must follow your state's delivery rules.
This guide is for landlords who rent out a home or a few units without a property manager and want a lease that holds up when something goes wrong. You will learn which clauses every residential lease needs, how security deposit rules work, what the federal lead disclosure requires, which state addenda to look for, and how to sign electronically without creating a weak spot.
What a lease can and cannot do
A lease is a contract, but it sits on top of your state’s landlord-tenant statute, and the statute wins. Clauses that waive the tenant’s right to a habitable home, waive deposit-return protections, or let you lock a tenant out are void in most states, and some states penalize landlords who knowingly include them.
That is why the first rule is to start from a lease drafted for your state, ideally one prepared or reviewed by a local attorney or published by a state landlord association, and then customize it. A generic national form often misses required disclosures and includes terms your state does not allow.
Must-have clauses
| Clause | What it should say | Why it matters |
|---|---|---|
| Parties and occupants | Every adult tenant by legal name; every authorized occupant listed | Each adult signer is responsible for the full rent; unlisted occupants become a lease violation |
| Premises | Full address, unit number, included parking, storage, and appliances | Prevents later disputes over what was rented |
| Term | Start and end dates, or month-to-month, and what happens at expiration | Controls notice periods and renewal |
| Rent | Amount, due date, where and how to pay, accepted methods | The core obligation; method rules prevent “the check is in the mail” |
| Late fees and grace period | Fee amount and when it applies, within state limits | Some states cap late fees or require a grace period |
| Security deposit | Amount, where it is held, allowed deductions, return timeline | Must match state statute; mistakes can cost a multiple of the deposit |
| Utilities and services | Who pays each utility, plus trash, lawn, and snow removal | The most common source of small disputes |
| Maintenance and repairs | How to request repairs, emergency contact process, tenant duties | Supports habitability compliance and documents response times |
| Entry | Notice you will give before entering, except emergencies | Must meet state notice rules |
| Pets and assistance animals | Pet rules, fees, and a statement that assistance animals are handled as accommodations | Avoids a fair housing violation |
| Subletting and assignment | Whether allowed, and only with written consent | Keeps unscreened occupants out |
| Alterations and smoking | No painting or alterations without consent; smoking policy | Protects the property and your insurance |
| Renters insurance | Required, with minimum liability coverage | Covers the tenant’s belongings and liability, not yours |
| Notices | Addresses and methods for formal notices | Determines when a notice legally counts as delivered |
| Termination and holdover | Notice required to end the tenancy, rent if the tenant stays past the term | Keeps move-outs orderly |
| Severability | An invalid clause does not void the rest | Protects the lease if one term is struck |
If your state allows attorney-fee clauses, note that some states automatically make a one-way fee clause reciprocal, so write it knowing it may apply to you too.
Security deposits: the rules vary by state
Deposit law is entirely state and local, and it is where landlords most often get hurt. Before you set a deposit, look up four things in your state statute:
- Cap. Some states limit the deposit to a set number of months’ rent, sometimes with different limits for furnished units or pets. Others set no cap.
- Holding rules. A few states require a separate or interest-bearing account, payment of interest to the tenant, or a written receipt naming the bank.
- Return deadline. After move-out you typically must return the deposit or send an itemized statement of deductions within a fixed window that ranges from a couple of weeks to a couple of months depending on the state.
- Penalties. Missing the deadline or deducting for normal wear and tear can forfeit your right to keep anything and, in some states, cost a multiple of the deposit plus attorney fees.
Deduct only for unpaid rent, damage beyond normal wear and tear, and costs the lease allows, and back each deduction with move-in and move-out photos and receipts. On the tax side, a deposit you plan to return is not income when you collect it; any part you keep becomes income that year, and a “last month’s rent” deposit is advance rent, taxable when received, according to IRS Topic 414.
The federal lead disclosure for pre-1978 rentals
If the home was built before 1978, the federal Lead-Based Paint Disclosure Rule applies to most leases. Before the tenant is obligated under the lease, you must:
- Give the tenant the EPA-approved pamphlet, Protect Your Family From Lead in Your Home.
- Disclose any known lead-based paint or lead-based paint hazards in the home.
- Provide copies of any lead records or reports you have, including from common areas in multi-unit buildings.
- Include the Lead Warning Statement in the lease or an attached addendum.
- Have you and each tenant sign and date the disclosure, along with any agent involved.
- Keep a copy of the signed disclosure for at least three years from the start of the lease.
According to the EPA, exemptions include leases of 100 days or less with no renewal or extension, zero-bedroom units such as studios and lofts, and housing for the elderly or people with disabilities unless a child under 6 lives or is expected to live there. Month-to-month tenancies that can run past 100 days are covered. A renewal is exempt only if you already made the full disclosure and have no new information. Penalties for skipping this step can be significant, and it is one of the easiest compliance wins in the whole lease.
State and local addenda
Beyond lead, states and cities add their own required disclosures and addenda. Common ones include:
- Mold information or known mold conditions
- Bed bug history or prevention information
- Flood zone or flood-history disclosures, now required in some states
- Radon testing information
- Smoking policy for multi-unit buildings
- Shared utility metering and how bills are split
- Rent control or stabilization notices where local ordinances apply
- Tenant rights notices covering protections for domestic violence survivors or the eviction process
- Owner or agent identification for service of legal notices
Search your state attorney general or housing agency site for a landlord-tenant handbook, which usually lists required disclosures. Rules vary by state and city, so confirm the full list with a local real estate attorney.
Signing a lease electronically
The federal E-SIGN Act provides that a signature, contract, or record cannot be denied legal effect solely because it is electronic, and nearly every state has adopted the Uniform Electronic Transactions Act or a similar law. In practice, an e-signed lease is as enforceable as a paper one when you do it carefully:
- Use a signing service that records an audit trail (who signed, when, from what IP address or verified email).
- Collect each signer’s agreement to do business electronically before they sign, especially where a law requires information to be given in writing.
- Send every party the fully executed copy, including all addenda and the lead disclosure.
Know the limits. The Act’s specific exceptions exclude notices of default or eviction under a rental agreement for a primary residence. Serve rent-demand, termination, and eviction notices exactly as your state statute requires, which often means personal delivery, posting, or mail.
Clauses to leave out
- Waivers of the tenant’s right to repairs or a habitable home
- Automatic forfeiture of the entire deposit for any breach
- Lockout, utility shutoff, or property-seizure rights
- Late fees above your state’s limit
- A blanket “no animals of any kind” clause with no accommodation language; see 24 CFR 100.204 and our guide to fair housing rules for private landlords
- Occupancy limits stricter than local codes, which can discriminate against families
Lease signing checklist
- Confirm the applicant was approved under your written criteria (see the tenant screening guide).
- Fill in every blank; strike or initial anything that does not apply.
- Attach the lead disclosure (pre-1978), state addenda, house rules, and the move-in condition checklist.
- Have every adult occupant sign.
- Collect the deposit and first month’s rent by traceable payment, and issue receipts.
- Deliver the signed lease, deposit receipt, and any required notices.
- Store everything for at least the length of the tenancy plus your state’s limitations period.
Next steps
- Return to the full how to rent out your house by owner guide for move-in and rent collection.
- Price the unit you are leasing with how to set the right rent price.
- Find a local landlord-tenant attorney to review your lease through ByOwners pros.
Frequently asked questions
Is a lease signed online legally binding?
Generally yes. The federal E-SIGN Act says a contract cannot be denied legal effect just because it is electronic, and nearly every state has a similar law. Use a signing service that keeps an audit trail and send every party a final signed copy.
How much can I charge for a security deposit?
It depends on your state. Some states cap deposits at a set number of months' rent, sometimes with different caps for furnished units or tenants with pets, while others set no cap. Check your state's landlord-tenant statute before you advertise.
Do I need a lead paint disclosure for my rental?
Yes, if the home was built before 1978 and no exemption applies. You must give the EPA pamphlet, disclose known lead-based paint and hazards and any reports, include the Lead Warning Statement with signatures, and keep the records for at least three years.
Can my lease ban all pets?
You can adopt a no-pets policy, but the Fair Housing Act requires reasonable accommodations for people with disabilities, which can include assistance animals. Add a line stating that the pet policy does not apply to assistance animals approved as an accommodation.
Can I text a tenant an eviction notice?
Do not rely on it. The E-SIGN Act excludes notices of default and eviction for a primary residence from its electronic-delivery rules, so serve those notices in the way your state statute prescribes.
Sources
- EPA: Lead-Based Paint Disclosure Rule (Section 1018 of Title X)
- Electronic Signatures in Global and National Commerce Act, Public Law 106-229
- 15 U.S.C. 7003, E-SIGN Act Specific Exceptions (U.S. Code)
- IRS Topic No. 414, Rental Income and Expenses
- 24 CFR 100.204, Reasonable Accommodations (Cornell LII)