Standard Residential Lease Agreement

Introduction

A standard residential lease is a contract with a fixed term between an owner and a renter for a home. This type of lease usually lasts for one year. During this time, the renter pays rent monthly, and both people agree to follow certain rules.

Data from the Bureau of Labor Statistics shows that 68.2% of all rental leases have a fixed term, and 87.68% of those fixed-term contracts are for 12-month periods.^[1]

This document sets the legal rules for the relationship between the owner and renter, covering things like paying rent, security deposits, who handles repairs, rules for living in the home, and how to end the lease.

The Legal Basis

Standard residential leases are controlled by laws at both the federal and state levels.At the federal level, the Fair Housing Act (42 U.S.C. § 3604) makes it illegal to discriminate in housing based on race, color, national origin, religion, sex, family status, or disability. ^[2] Federal law also requires owners to provide disclosures about lead-based paint if the house was built before 1978 (42 U.S.C. $\S$ 4852d).

^[3] State and local laws manage other specific areas, such as the maximum amount for security deposits, how evictions must be handled, rent control limits, and the standards for making sure a home is safe to live in. All lease agreements must meet every rule required by federal, state, and local governments.

How a Standard Residential Lease Agreement Works

Step 1: Applying and Screening

People who want to rent must fill out an application. The owner can run background and credit checks and may charge a fee of up to $20, or the actual cost, whichever is less. This fee must be dropped if the renter gives a current (less than 30 days old) background or credit report themselves.

Step 2: Negotiate and Sign the Lease

Right after the renter is approved, both sides discuss the contract rules and then sign the agreement. Most states do not require other witnesses for home leases. ^[7] At this time, the renter pays the first month's rent, the security deposit, and any other required upfront fees.

Step 3: Checking the Home Before Moving in

Before or when the renter moves in, the owner and the renter should look over the entire property together. They should write down the home's condition using a move-in checklist. This process protects both people by setting a clear starting point for checking damages when the renter leaves.

Step 4: the Rental Period

While the lease is active, the renter must pay rent on time, keep the property in good shape, and follow all contract rules. The owner must keep the home safe to live in, respect the renter's right to live peacefully, and give proper warning (usually 24 to 72 hours, based on state law) before entering for checks or repairs. ^[8]

Step 5: Ending or Renewing the Lease

As the contract end date gets closer, the people involved can decide to renew the lease (often with a rent update or increase), let the contract switch to a month-to-month agreement, or simply end the tenancy. To properly end the lease, the renter must give notice (usually 30 to 60 days) and leave the property clean.

Step 6: Moving Out and Getting the Deposit Back

After the renter moves out, the owner checks the place for damage that is more than normal use (wear and tear). The landlord must return the security deposit (minus a detailed list of deductions) within the time limit set by the state, typically 14 to 45 days.^[5] Illegally keeping the deposit can result in penalties, including paying double or triple the deposit amount and covering the renter's legal fees.

Essential Lease Provisions

Contract Parties and the Property

The lease must clearly list the full, legal names and addresses of the owner and all renters. It should also fully describe the property: the address, unit number, type of dwelling (apartment, house), how many bedrooms and bathrooms it has, and any extra features included (like parking or storage).

Payment of Utilities and Services

The lease must clearly state who pays for which services. It specifies which utilities the owner pays for (like water and trash) and which ones are the renter's responsibility (like electricity, gas, and internet). Agreements must also be defined for things like heating fuel, snow removal, lawn care, and pest control.

Included Furnishings and Appliances

If the home includes any furniture or appliances, these items must be detailed in the contract, such as the refrigerator, oven, and washer/dryer. This documentation ensures that both parties are accountable for the condition of these items when the renter moves out.

Pet Rules

The contract needs to specify if animals are permitted on the property. If they are, the lease should detail the acceptable types, the maximum number allowed, any size restrictions, and whether an initial pet deposit is required (stating if this fee is refundable or not).

Data shows that approximately 72% of U.S. homes own pets, and more than 80% of renters find pet-friendly policies important before entering a rental agreement. ^{[9] [10]}

However, the owner must make necessary exceptions for both service animals and emotional support animals under the Fair Housing Act, ^[2] even if the general pet policy is a ban. Service animals do not require paperwork or fees. Emotional support animals only need a verification letter from a doctor or healthcare provider.

Smoking Rules

Property owners have the option to ban or place limits on smoking within the rental home. For instance:

California requires that any lease signed after January 1, 2012, must clearly mark all areas where smoking is not allowed, if the owner restricts smoking anywhere on the premises. ^[11]

New York City buildings with three or more apartments must create a formal written smoking policy, share it with all renters, and make it part of the lease contract (Local Law 147).^[12]

Parking Spaces

If the rental includes parking, the lease needs to detail the arrangement: the number of spaces provided, where they are located, whether they are permanently assigned or open to anyone, and if there are any extra charges. Rules for visitor parking, overnight parking, and any general restrictions should also be included.

Occupants and Visitors

The contract must name everyone officially allowed to live in the unit besides the main renters. Rules for visitors are often determined by the owner and are not strictly required by law. However, rules that are too harsh (like limiting guests to just 48 hours) might violate the renter's right to live in peace. Most owners permit guests to stay for a maximum of 7 to 14 days in a row, or a total of 30 days per year, before asking to include guest to the official lease.

Rights and Obligations

Owner's Responsibilities for Maintenance

The heating, plumbing, and electrical systems are working.

There is hot and cold running water.

The toilet, sink, and shower/bathtub are functioning.

The building structure is safe.

The environment is free of pests.

There are adequate locks and security.

All building codes are followed.

If an owner doesn't keep the home livable, the renter may be allowed to withhold rent, make repairs and deduct the cost, claim constructive eviction, or sue for damages.

Right to Enter the Property

The owner can enter the rental home for valid reasons (to inspect, make repairs, or show it to future renters or buyers) if they provide notice ahead of time. The required notice period changes by state:

24 hours is required in California, Montana, Nebraska, and Nevada.

48 hours is required in Colorado and Vermont.

72 hours is required in Virginia. ^[8]

Many states simply require "reasonable notice." Entry must happen during normal business hours unless the people involved agree otherwise. In emergencies (like a fire, flood, or gas leak), the owner can enter without giving notice.

Peaceful Use of the Home

Every home rental contract includes a promise for quiet enjoyment, which guarantees the renter the right to use the property without the owner significantly interfering. Violations include entering too often without notice, harassing the renter, failing to control loud disturbances from neighbors, or neglecting to maintain shared building spaces. If this right is violated, the renter may be able to ask for a reduction in rent, end the lease early, or seek payment for damages.

Subletting and Assigning the Lease

Unless the contract specifically bans it, renters are generally allowed to sublet the property or transfer the lease to someone else. Most leases require the owner's written permission first. If permission is required, the owner cannot reject a request without a good reason, but they are allowed to screen the new tenant and charge a fair fee for the paperwork. When subletting, the original renter remains responsible for the lease. When assigning the lease, the new renter takes over the responsibility (though the original renter might still be liable if the new one fails to pay).

Raising the Rent

The rent price cannot go up during the middle of a lease that has a fixed end date, unless the contract clearly allows for it. For month-to-month agreements, or when a lease is renewed, the owner must give the renter advance warning (usually 30 to 90 days, depending on state law) before the new, higher rent takes effect.

Lease Termination and Eviction

Standard Ways to End the Contract

A fixed-term lease ends by itself on the last date specified. If the renter stays with the owner's permission, the contract typically switches to a monthly agreement under the same rules. To end a month-to-month lease, either the owner or the renter must provide written notice (usually 30 to 60 days, based on state law).

Eviction (Removal) Procedures and How They Work

Owners are not allowed to force a renter to leave without first getting an official court order. The legal process for eviction (removal) involves: (1) giving the renter proper written notice (3 to 30 days for missing rent payments, or longer for breaking other rules or ending the lease without a reason); (2) filing a court case if the renter does not move out; (3) a court hearing where the renter can defend themselves; (4) a final court order if the owner wins the case; and (5) the local law enforcement carrying out the removal. It is against the law for an owner to use self-help eviction, like changing the locks, removing belongings, or turning off the power. Doing so can result in fees and penalties for the owner.

Rights to End the Lease Early

Renters have the legal right to break the lease early under specific circumstances:

Military Orders: The Servicemembers Civil Relief Act (50 U.S.C. $\S$ 3955) allows active military personnel to end the lease with 30 days' notice if they get orders for deployment or a permanent change of station.^[14]

Abuse or Violence: Many states allow victims of domestic violence, sexual assault, or stalking to break the lease if they provide the necessary official documentation (like a police report).

Unsafe Home: If the owner fails to maintain safe and livable conditions, the renter can end the lease early.

Owner Harassment: Constant privacy violations or harassment by the owner may justify ending the contract.

In all cases where a renter breaks the lease early, the owner has a legal duty to minimize their own financial loss by making a reasonable effort to find a new renter quickly.

Special Considerations

Insurance and Responsibility

The owner's building insurance policy only protects the structure of the house, it does not cover the renter's personal property. Because of this, renters should purchase renter's insurance to safeguard their belongings and cover their legal responsibility. Many property owners now require renters to show proof of this insurance (typically covering $$100,000$ plus liability coverage ) as a condition of the lease. The contract should specify that the owner is held financially responsible for injuries caused by their failure to make necessary repairs, while the renter is held responsible for injuries to their guests caused by the renter's own lack of care.

Transferring Ownership

If the rental house is sold while a contract is active, the lease agreement generally remains in effect and the new owner must honor its terms. Renters must be informed of the new owner's contact details. Some leases allow the new owner to terminate the contract with sufficient notice, but other agreements ensure the renter's right to occupy the property until the original end date.

Death of the Renter

In most areas, a renter's death does not immediately end the rental agreement. The financial responsibility for the rent generally shifts to the renter's estate until one of these things happens: (1) the contract's term naturally concludes, (2) the family provides the required notice to move out (which is typically 30 to 60 days), or (3) the apartment is successfully rented to someone else. State laws are different regarding how much debt the estate takes on and if any family members or co-tenants who were living there have the right to continue occupying the home.