Rental Agreement: Definition, Key Terms, Differences
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What Is a Rental Agreement?
A rental agreement is a legal document describing the arrangement between the owner of real estate and another party who will pay rent in exchange for permission to occupy the property.
The owner of the real estate is also known as a "landlord" or "lessor." The party paying rent is known as a "tenant" or "lessee."
This type of agreement is a contract documenting the use of a space, either residential or commercial, for a fixed period of time in exchange for rent. The landlord and tenant can negotiate the terms of this contract. Once both parties sign the agreement, however, it is considered legally and mutually binding.
You may also encounter a rental agreement referred to as the following:
- Apartment lease
- House rental agreement
- Lease agreement
- Lease form
- Rental contract
- Rental lease agreement
What Is the Difference Between a Rental Agreement and a Lease Agreement?
Although the terms are often used interchangeably, a rental agreement and lease agreement can legally refer to distinct types of agreement documents. Both rental agreements and leases are legally binding contracts between a landlord and a tenant or tenants.
A rental agreement has the following characteristics:
- A rental agreement is usually month to month.
- Landlords can make changes to the rules of the property and rent, provided they give their tenants proper notice.
- Notice of changes must typically come 30 days in advance, although the required amount of time can vary among states.
A lease agreement has the following characteristics:
- A lease agreement states the amount of rent due for a specific amount of time.
- A landlord cannot make changes to the property rules or rent during the rental time.
- If landlords decide to make changes to the lease agreement terms, they must wait until the lease has expired to renegotiate new terms for the lease.
The biggest difference between a rental agreement and a lease is the period of time these documents typically cover. A lease generally covers a longer period of time, for example, six months or 12 months. A rental agreement covers a shorter period of residency, usually 30 days.
Lease Agreement Templates
Terms to Include in a Rental Agreement
Whether you are creating a rental agreement for an apartment, home, or room, you should include certain terms in your agreement.
Names of All Parties
A rental agreement should list all parties to the agreement in the document, making sure to include all adult tenants. A rental agreement should list the landlord and main tenant as well as all other adults occupying the premises.
Including all names ensures that:
- All adults living in the rental property are responsible for obligations and duties outlined in the agreement, including paying rent.
- The landlord can terminate the agreement if any tenant violates the terms of the agreement.
If only one tenant is listed, the landlord has fewer options if one of the other occupants violates an important term of the agreement.
Term of Tenancy
This clause should describe whether the rental agreement is a month-to-month agreement (carrying over each month unless the tenant or landlord terminates the agreement) or whether it is a lease agreement covering a fixed term (typically for a year with the option for renewal upon expiry of the initial fixed period). The rental agreement should also address options for termination.
Rent
The rental agreement should include provisions for:
- The amount of rent
- When the rent payments are due
- When a rent payment is considered late
- How rent payments should be made
- What payment methods are accepted
- What happens if a rent payment is late or if a rent check bounces
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Security Deposit and Other Fees
Security deposits can become a contentious issue between a landlord and tenant. The rental agreement should make all matters pertaining to the security deposit clear to avoid future disputes. The rental agreement should state:
- The amount of the security deposit
- When and how a landlord can use a deposit
- When and how the landlord will return the deposit
- Other fees that can be deducted from the security deposit, such as repair or cleaning fees
States may set specific requirements with which landlords must comply in terms of security deposits. Landlords should consult with state laws to ensure the terms of the rental agreement are valid.
Repairs and Maintenance
Both the landlord and tenant(s) should have their maintenance obligations set in the terms of the rental agreement. For example, tenants may be responsible for:
- Maintaining a clean premises
- Any damages they cause
- Informing the landlord of any repairs that need to be made for which the landlord is responsible
Alteration and Damage to the Property
The rental agreement should state who is responsible if damages to the property occur. The agreement should also set out what, if any, types of alterations a tenant may make to the property, as well as when a landlord must approve or grant permission to a tenant to perform an alteration.
Occupancy or Subleasing
If the landlord has limits on occupancy or subleasing possibilities, the rental agreement should define these terms. A landlord can place limits stipulating that only those who sign the lease and their minor children can live in the rental property. A landlord can also prevent a tenant from subleasing the property without prior approval.
Pets
The rental agreement should clearly state whether pets are permitted on the property. If the agreement allows pets, the document should describe:
- The maximum number of pets allowed
- Any restrictions to the types of pets allowed, for example, small dogs weighing less than 50 pounds
- The tenant's responsibility to keep the premises clean
Right of Entry
A rental agreement should specify the conditions that allow a landlord to enter a rental property. The agreement should also state what notice is required before the landlord can enter. State laws often regulate a landlord's right of entry, and provisions in the rental agreement should align with the legal requirements of a state.
Illegal Activities and Disruptive Behavior
The rental agreement should clearly state what constitutes illegal activities, such as dealing drugs, as well as what is considered disruptive behavior, such as excessive noise). The agreement should also prohibit such activities and behavior, stating that these activities and behaviors would be grounds for termination of the agreement.
Other Rules and Regulations
A rental agreement can cover other expectations for the tenant's behavior, including the following:
- Whether smoking is allowed
- Whether overnight guests are allowed
- If overnight guests are allowed, how long they can stay at the property
Severability Clause
A severability clause will allow the rest of the rental agreement to remain in place if one particular clause is illegal, for example, because it doesn't comply with state laws for rental property.
Image via Flickr by hearingpocket
Local and State Laws
Before writing a rental agreement, landlords should consult with local and state laws to make sure that all included provisions comply with legal requirements. Local and state laws can regulate aspects such as subleases, notice requirements, and how a landlord can deal with a property if a tenant leaves without paying rent. These laws may vary from location to location.
If you are a landlord preparing to rent a property, a rental agreement can provide important protections. When you're drafting a rental agreement, consult with a lawyer to ensure your document covers all necessary aspects.
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I am the Founder and Managing Attorney of DMD Law, PA. and have 20 years' experience. I am a business-oriented, proactive, and problem-solving corporate lawyer with in-house experience. My firm's practice focuses on ensuring the legalities of commercial transactions and contracts. I am adept at reviewing, drafting, negotiating and generally overseeing policies, procedures, handbooks, corporate documents, and contracts. I have a proven track record of leading domestic and international companies by ensuring they are functioning in complete compliance with local, federal and international law. I also help clients with their estate planning documents. In all projects, the firm's goal is to simplify the law and provide clients with the confidence and information necessary to make their decisions.
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When the pressure mounts and the outcome matters most, Edward L. Blair IV doesn’t just step up—he dominates. As a formidable Florida-based attorney, Mr. Blair commands every case with the unshakable focus of a warrior and the calculated precision of a master strategist. His expertise in drafting pleadings, motions, and contracts transforms legal writing into a sharp-edged instrument—an arsenal of language wielded with power and purpose. Edward L. Blair IV is not just an attorney—he’s a lionhearted force of advocacy. Every case is a mission, and every client is a cause worth fighting for. His strategic legal insight doesn’t just navigate complexity—it crushes confusion, eliminates doubt, and clears the path to victory. Respected by clients and relentless in pursuit of justice, he approaches each legal battle as a personal crusade. When you choose Blair Legal Solutions LLC, you gain more than representation—you gain a relentless ally. Your battle becomes his, and he won’t rest until the job is done.
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Tim advises small businesses, entrepreneurs, and start-ups on a wide range of legal matters. He has experience with company formation and restructuring, capital and equity planning, tax planning and tax controversy, contract drafting, and employment law issues. His clients range from side gig sole proprietors to companies recognized by Inc. magazine.
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Richard C.
Caudill Arundell Law PLC is a Phoenix based civil law firm providing quality, effective and affordable legal services. Richard C Caudill-Arundell, LP, MLS (Hons), G Cert LP is the Managing LP for the firm and is licensed to practice limited jurisdiction civil law in the State of Arizona (Legal Paraprofessional). Offering affordable real estate rental, transactional and business contract drafting, review and analysis, and breach of contract advice. Publications: https://scholar.google.com/citations?user=za5yjFcAAAAJ&hl=en Education: University of Arizona James E Rogers College of Law - Master of Legal Studies Cum Laude, Graduate Certificate LP
"I had the pleasure of working with Richard while preparing a complex demand, and his support made all the difference. He was incredibly attentive, responsive, and thorough throughout the process. Richard made sure my concerns were fully understood and helped move things forward at a time when I really needed it. He also played a key role in getting an attorney involved, which I truly appreciated. His professionalism, compassion, and follow-through stood out, and I’m very grateful for everything he did to help. Highly recommend working with him if you get the chance."
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16+ years of diverse legal experience within the military and substantial military leadership and supervisory experience. Portfolio captures experience in national security law (international law, maritime law, sensitive support, inter-agency agreements, rule of law, etc.), government contracts/procurement, administrative law, Freedom of Information Act (FOIA), fiscal law, labor law, civilian personnel law, harassment and hostile work environment, retaliation and whistleblower protection, medical disability, criminal law, and military law. Significant experience advising general/flag officers and senior executives; powerful oral and written communication skills. Post-military experience includes Landlord Tenant Law, Criminal Law, and Family Law.
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Dan P.
For the past 25+ years, I have been a practicing attorney in New Jersey. An expert in contractual matters, I have assisted countless clients in an assortment of personal and business matters. Most recently with the Sokol Firm in Haddonfield, I assisted homeowners in financial distress.
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Illinois-licensed attorney with 9 years of experience in public interest work utilizing advanced skills in contract & project management, compliance, investigation, risk management, & training. Proven record developing and managing partnerships to deliver exceptional results in government agencies, non-profits, law firms, and broad community networks leading to multi-million dollar recoveries, risk management, and execution of large-scale program initiatives. Skills include: 1. Project & Contract Management: 9 years in project & contract management tracking project and contract goals, stages, budgets, and deliverables to lead and support program and department initiatives. 2. Compliance, Investigation, & Risk Management: 9 years in law, policy, & programs conducting investigation, research, writing, analysis, and education in administrative agency and court matters relating to: compliance, financial regulation, contracts, employment, workforce development, healthcare, retirement assets, mental health, disability, taxes, immigration, civil rights, grants, benefits, social services, & criminal defense. 3. Training/Teaching: 4 years training co-workers & community partners; 3 years teaching in U.S. & Ecuador (7 total). 4. Technology: Microsoft Office (including Excel), Contract Express, DocuSign, SharePoint, Westlaw, Lexis Nexis, Concordance, GoldFynch, Clio, Smokeball, Qualtrics, Google Forms, Slack, Zoom, Teams, Webex, & Adobe. 5. Spanish: Advanced Spanish skills from 1 year of teaching, studying, & travel in Ecuador, Peru, & Mexico.
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Landlord Tenant
Rental Agreement
Washington
How to amend a rental agreement?
I am a tenant in an apartment that I have been renting for the past year. Recently, my landlord has asked me to sign a new rental agreement with updated terms and conditions. I would like to know the process for amending the agreement so that I can make sure all the terms are agreeable to both parties.
Merry K.
Speaking generally, if your agreement is a lease, neither the landlord nor tenant can amend it unless both parties agree (the same can be said for a completely new agreement). If it is a month to month agreement, if you don't sign, the landlord may be able to give you notice to vacate. What I would do is ask for a couple of days for review. Put your current agreement down with the proposed new agreeement down, side by side, and go through them together, paragraph by paragraph. At the same time, make notes about anything in the new agreement you don't like, and attempt to negotiate the terms with your landlord before signing. Please note that the WA State Residential Landlord Tenant law was modified in several ways by the WA State Legislature, effective a few months ago - this may be why your landlord is doing this. For example, a landlord now has 30 days to return a security deposit (or explain why he/she isn't); it was 21 before that, and 14 before that). To review the Landlord/Tenant Law at the same time, follow this link: https://apps.leg.wa.gov/rcw/default.aspx?cite=59.18 If you would like to hire me to help, I am not available until October 15th, I'm afraid - I'm on vacation at Yosemite.
Business Contracts
Rental Agreement
New York
Is this considered a form of misinterpretation leading to a breach of contract ?
I LIVE IN FLORIDA AND I NEED A LAWYER WHO PRACTICES IN THE STATE OF NY TO REVIEW A EQUIPMENT RENTAL CONTRACT THAT WAS SIGNED AND AGREED UPON FOR JULY 30,2022 IN BROOKLYN, NY. THE LOCATION OF THE EVENT WAS RELOCATED DUE TO UNFORESEEN CIRCUMSTANCES. THE NEW LOCATION WAS ONLY 2.5 MILES AWAY FROM THE ORIGINAL LOCATION. I NEEDED TO CHANGE THE TENT SIZE TO A SIZE THAT CAN FIT INTO OUR NEW FACILITY. WAS NO LONGER NEEDED BUT SERVICES AND OTHER CONTRACTED EQUIPMENT WERE STILL NEEDED. COMPANY STATES SINCE I WANT TO DOWNSIZE THE TENT I AM CANCELING WHICH IS NOT THE CASE. I ADVISED THE OWNER ABOUT HIS ASSISTANT MISLEADING ME INTO BUYING A SMALLER TENT THAN WAS NEEDED. THE TENT HAS A CAPACITY OF ABOUT 500 PEOPLE ONLY, BUT I WAS TOLD THAT 1200 PEOPLE CAN FIT. I HAVE ATTEMPTED TO WORK WITH THE OWNER AND HAS REFUSED TO WORK WITH ME AND HAS FOUGHT THE TWO DISPUTE CLAIMS I HAVE MADE WITH THE BANK. OWNER CXLD CONTRACT AND STATES THAT I CANCELLED IT BY WANTING TO MAKE A CHANGE TO THE TENT. NOWHERE ON THE CONTRACT STATES CHANGES CAN’T BE MADE. I SPENT $9,298.00 AND I HAVE NOTHING TO SHOW FOR IT. THE CONTRACT IS VERY AMBIGUOUS. CAN THIS BE CONSIDERED A BREACH OF CONTRACT WITH THE MISINTERPRETATION OF THE TENT?
Jane C.
You need to consult an attorney to review the terms of the contract.
Landlord Tenant
Rental Agreement
New York
Can a landlord increase the rent during the term of a rental agreement?
I am currently renting an apartment and have a signed rental agreement with my landlord for a fixed term of one year, with a specified monthly rent. However, recently my landlord informed me that they intend to increase the rent starting next month. I was under the impression that the rent amount was fixed for the duration of the agreement, so I am seeking clarification on whether a landlord has the right to increase the rent during the term of a rental agreement.
Damien B.
Hello! My name is Damien Bosco, Esq. My law office is in Long Island City, across from Manhattan. Generally, you are correct. For an annual lease with a fixed monthly rate, a landlord cannot increase the monthly rent during the pendency of the lease. Sometimes, the lease may allow for such an increase, but only if there is a provision in the lease that allows for it. If your lease does not include a rent adjustment clause and you believe the landlord is acting improperly, you are within your rights to challenge the increase. Feel free to reach out with any more questions about this.
Landlord Tenant
Rental Agreement
Washington
Are there automatic renewals in rental agreements?
I am looking to rent a property and have read the rental agreement, however, I am unsure if there are any automatic renewals in the agreement. I have heard that sometimes rental agreements are set up to automatically renew after a certain period of time, but I am not sure if this is the case with my agreement. I am looking for clarity on whether or not the agreement I am signing includes any automatic renewals.
Merry K.
Residential month to month rental agreements and/or residential lease agreements often include terms regarding whether or not an agreement automatically renews. However, the Washington State Residential Landlord Tenant Law and/or ordinances in certain WA cities sometimes may provide the answer to your question. https://apps.leg.wa.gov/rcw/default.aspx?cite=59.18
Landlord Tenant
Rental Agreement
Florida
Rental agreement for multiple tenants?
I am a landlord of a residential property and I am looking for advice on the best way to structure a rental agreement for multiple tenants. The property is currently occupied by two tenants who wish to stay in the property, but I am considering adding a third tenant. I need advice on how to ensure that all parties are fully informed of their rights and obligations and that any potential disputes can be quickly and fairly resolved.
Diane D.
You need to put all your terms and conditions in your agreement. You can use the same agreement for all three tenants, or more if you desire. Don't leave anything to supposition or make ambiguous statements. If you need further help, you can contact me here.
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Home Rental Lease Agreement
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