What to Include in a Rental Agreement?

Do you know exactly what should go into your rental agreement to protect both your property and your income? Many property owners underestimate the importance of having a detailed and clearly written lease.

A generic or incomplete agreement can open the door to legal problems, rent disputes, and property damage that could have been avoided.

A rental agreement is not just a formality; it’s a legally binding document that defines the relationship between a landlord and a tenant. It spells out rights, responsibilities, and rules, and serves as your first line of defense if anything goes wrong.

A clear and detailed agreement not only helps you manage your rental property effectively and avoid misunderstandings down the line, but also shows professionalism, making it easier to find great tenants who respect your terms from the start.

Brentwood Square Management Services, Inc. has created this helpful guide to walk you through what to include in a rental agreement and how to clearly define important terms.

Taking the time to do this helps protect both parties and prevent misunderstandings during the tenancy. Keep reading to learn more!

Key Components Every Rental Agreement Should Include

Names of All Tenants

List the full legal names of every adult who will live in the rental unit. Each tenant should sign the agreement. This makes each person legally responsible for paying rent and following the terms of the lease. If one tenant breaks the rules or leaves early, the others are still accountable.

Property Details

Clearly describe the rental unit. Include the full address, unit number (if applicable), and any areas the tenant has access to, such as parking spaces, basements, storage units, or shared amenities.

This helps eliminate confusion and ensures everyone knows the boundaries of their rental space.

Lease Term

State whether the lease is fixed-term or month-to-month. For fixed-term leases, specify the start and end dates. For month-to-month tenancies, outline how much notice is required to terminate the lease (commonly 30 days). Clarifying the lease duration helps both parties plan accordingly.

Rent Terms

Include the exact rent amount, when it is due each month, and how it should be paid (check, bank transfer, online portal, etc.) as part of your rent collection process.

Also note any late fees and the grace period for late payments. If you allow partial payments or charge penalties for bounced checks, put that in writing as well.

Specify whether rent increases are allowed during the lease term and under what conditions. This helps set clear expectations and avoids confusion or disputes later on.

Security Deposit

Specify the security deposit amount and the conditions for its return, including any potential deductions for damages or unpaid rent.

Explain what deductions may be made for repairs or cleaning, and how long after move-out you will return the deposit. Make sure your terms comply with state or local laws regarding deposit limits and return timelines.

Utilities and Services

Clarify who is responsible for paying which utilities. If the tenant is expected to pay for electricity, gas, water, trash, or internet, specify that clearly. If certain utilities or services are included in the rent, make that known as well. This prevents disputes over unexpected charges.

Maintenance and Repairs

Explain who is responsible for routine property maintenance and how tenants should report repair issues. Indicate what types of damage are considered tenant-caused and what repairs the landlord will handle as part of their property maintenance responsibilities.

Be clear about emergency procedures, such as for gas leaks or plumbing failures, and how tenants should respond in those situations.

Rules and Restrictions

Set house rules on noise, smoking, pets, subletting, and illegal activities. If you have specific restrictions, such as no overnight guests for more than a certain number of days, state them clearly.

This section should align with your expectations for property use and help avoid tenant behavior that could cause problems or damage.

Entry Rights

Include a clause that explains when and how you are allowed to enter the rental unit. Most states require landlords to give advance notice before entering for inspections, repairs, or showings. Clarify emergency entry situations.

Mention how notice will be delivered, such as by phone, email, or written note. Clearly stating this process helps avoid misunderstandings and supports a clear, respectful landlord-tenant relationship.

Renewal and Termination

Explain how the lease can be renewed or terminated. Outline the lease renewal process, including when and how tenants will be notified about the option to renew. If you intend to increase rent upon lease renewal, include how much notice you'll provide.

Mention any renewal screening checks that may be conducted before renewal is confirmed. Also, explain how tenants can end the agreement, including the required notice period.

Be sure to include the steps for move-out, such as cleaning, key return, and any final inspection procedures.

You should also state whether the lease will automatically convert to a month-to-month agreement if not renewed. Clarifying this avoids confusion and ensures both parties understand what happens at the end of the lease term.

Legal Disclosures

Disclose any information required by state or local law, such as lead-based paint warnings (for buildings built before 1978), mold disclosures, or information about sex offender registries. It’s also a good idea to mention any known hazards on the property, such as asbestos or pest issues, even if not legally required.

Additionally, if your rental is located in a flood zone or wildfire-prone area, make sure to inform tenants of these risks so they can plan accordingly, including purchasing renters insurance if needed.

Signature and Date

Make sure both you and the tenant(s) sign and date the agreement. Without signatures, the document may not be enforceable in court. Ensure both the landlord and tenant receive a copy of the signed agreement for their records.

Keep a digital backup of the signed document in a secure location in case the original is lost. This helps ensure you have access to it quickly if any disputes arise in the future.

Bottom Line

A strong rental agreement provides clarity, reduces risk, and lays the groundwork for a smooth landlord-tenant relationship.

By including key terms such as rent, lease duration, maintenance responsibilities, and house rules, you protect yourself from avoidable legal and financial issues. Failing to cover essential terms may cost you time, money, and even your property’s condition.

Brentwood Square Management Services, Inc. specializes in helping landlords craft customized, legally sound rental agreements tailored to your specific properties.

With experience in compliance, tenant relations, and lease documentation, we ensure you’re covered from every angle. Let us help you manage your rental units more efficiently and reduce stress with proper paperwork.

Get in touch with Brentwood Square today to review or upgrade your rental agreements and start protecting your property the right way.