In this guide
Failing to Put Everything in Writing
Oral agreements are tempting because they seem flexible, but they are a breeding ground for misunderstandings. If a landlord verbally promises to allow a pet or to make repairs, and the tenant later relies on that promise, the landlord may deny it, and the tenant has no proof. Courts generally enforce only what is written in the lease.
Always ensure that every term, from rent due dates to maintenance responsibilities, is explicitly stated in the lease. This includes any special concessions like a discount for early payment or permission to sublet. If it's not in writing, it doesn't exist legally.
For landlords, a written lease protects you from tenants who might claim you agreed to something you didn't. For tenants, a written lease ensures you have a record of what you're entitled to. Take the time to draft a comprehensive lease or use a reputable template, and have both parties sign and date it.
- Include all agreed-upon terms, even minor ones.
- Use a written lease for every rental, no matter how short the term.
- Keep a signed copy for your records and provide one to the other party.
Vague or Ambiguous Language
Using unclear terms like 'reasonable' or 'normal wear and tear' can lead to disputes. For example, what constitutes 'excessive' noise? What is 'normal' wear? Without specific definitions, each party may interpret the terms differently, leading to conflicts.
Define key terms in the lease. For instance, specify quiet hours (e.g., 10 PM to 7 AM), define what is considered damage versus wear (e.g., small nail holes are wear, but large holes are damage), and set clear standards for cleanliness.
Also, be precise about rent: specify the exact amount, due date, grace period, late fees, and acceptable payment methods. If utilities are included, state which ones and any caps on usage. The more specific you are, the less room there is for misinterpretation.
- Use concrete numbers and dates whenever possible.
- Define terms like 'damage', 'repair', and 'excessive'.
- Include examples of what is allowed and what is not.
Overlooking State and Local Laws
Lease agreements must comply with landlord-tenant laws, which vary by state and even city. Some jurisdictions have rent control, security deposit limits, required disclosures (like lead paint or mold), and specific eviction procedures. Ignoring these laws can make your lease unenforceable or expose you to liability.
For instance, many states cap security deposits at one or two months' rent. If you charge more, you may be violating the law. Also, some cities require a 'just cause' for eviction, meaning you cannot evict without a specific reason like nonpayment or lease violation.
Before finalizing a lease, research your local laws or consult a local attorney. Even if you use a template, have it reviewed by someone familiar with your jurisdiction. This is especially important for first-time landlords and tenants in a new state.
- Check your state's landlord-tenant handbook online.
- Be aware of rent control and security deposit limits.
- Include required disclosures (e.g., lead-based paint, mold, registered sex offenders).
Ignoring Maintenance and Repair Responsibilities
A lease should clearly outline who is responsible for what maintenance and repairs. If it's silent, the law often defaults to the landlord for major systems (e.g., HVAC, plumbing, electrical) and the tenant for minor upkeep (e.g., changing light bulbs, keeping the unit clean). But ambiguity can lead to disputes.
Specifically list maintenance duties: for example, the tenant must replace HVAC filters every 3 months, the landlord will handle appliance repairs, and the tenant must mow the lawn if it's a house. Also, establish a procedure for reporting maintenance issues and a timeline for resolving emergencies.
Both parties should understand that failure to maintain can lead to bigger problems. For tenants, neglecting to report a leak could result in mold, and you might be held liable if you caused the damage. For landlords, ignoring repairs could lead to uninhabitable conditions and legal action from the tenant.
- Create a maintenance checklist as an addendum.
- Specify response times for urgent repairs (e.g., 24 hours for no heat).
- Clarify that the tenant must keep the premises clean and sanitary.
Skipping the Move-In/Move-Out Inspection
Without a documented move-in inspection, it's nearly impossible to prove what damage existed before the tenant moved in. This often leads to security deposit disputes. Landlords may withhold funds for pre-existing damage, and tenants may be blamed for issues they didn't cause.
Before the tenant takes possession, walk through the property together and document the condition. Use a checklist or form, take photos and videos, and note any existing damage (e.g., scratches on floors, stains on carpets). Both parties should sign and keep a copy.
Repeat the process at move-out. Compare the condition to the move-in checklist. This provides clear evidence for any deductions. If you skip this, you risk losing the deposit dispute or being liable for improper withholding.
- Use a detailed checklist that covers every room and item.
- Take dated photos and videos and store them safely.
- Sign and date the inspection form and give a copy to the tenant.
Not Addressing Early Termination and Renewal
Life is unpredictable, and tenants may need to break a lease early. If the lease doesn't specify the consequences, the tenant might lose their entire deposit or be sued for the remaining rent. Landlords might face unexpected vacancies. A clear early termination clause protects both sides.
Include a clause that states the notice period (e.g., 30 days), any fees (like a re-letting fee), and the tenant's liability. Some leases allow the tenant to find a replacement tenant, which can mitigate damages. Also, outline the renewal process: when and how to notify, and whether rent will increase.
For example, you might state: 'Tenant may terminate this lease with 60 days written notice and a fee equal to one month's rent.' Alternatively, 'Tenant may terminate if they are transferred for work, with proof.' Having this in writing avoids surprises and legal headaches.
- Define the notice period for renewal or non-renewal.
- Specify early termination fees and conditions.
- State whether subletting is allowed and under what conditions.