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Monthly Lease Template

 

MONTHLY LEASE AGREEMENT

A month-to-month rental (lease) agreement establishes a legal framework for the month-to-month rental of residential property between a landlord and a tenant. It establishes an ad hoc tenancy with no set duration.

In most cases, either side must provide the other 30 days’ notice to end a month-to-month rental agreement. This criterion sets it apart from a fixed-term lease, which has an expiration date that is specified (e.g., six months, nine months, one year, etc.). Generally, there are repercussions if either party breaks a fixed-term lease early.

How to Write a Lease Agreement

A lease agreement is a legally binding contract between a landlord and a tenant that outlines the terms and conditions for renting a property. A well-drafted lease agreement protects both parties’ rights and ensures clarity on key issues such as rent, maintenance, and duration. Below is a comprehensive guide on how to write a standard lease agreement:

1. Title and Introduction

  • Begin with a clear title: “Residential Lease Agreement,” “Commercial Lease Agreement,” or specify the type of lease.
  • Include an introductory paragraph that identifies the landlord, tenant, and property address.

2. Property Details

Clearly describe the property being leased, including:

  • Address of the property.
  • Type of property (e.g., apartment, house, office space, etc.).
  • Any included amenities or shared spaces (e.g., parking, garden, or storage).

3. Lease Term

State the duration of the lease, such as:

  • Fixed-term lease: Specific start and end dates.
  • Month-to-month lease: Renewed monthly until terminated by either party.

4. Rent Details

Include:

  • The amount of rent to be paid.
  • Due date for rent payments.
  • Accepted payment methods (e.g., bank transfer, check, online platforms).
  • Late payment penalties, if applicable.

5. Security Deposit

Outline details about the security deposit:

  • Amount (typically one to two months’ rent).
  • Conditions for deductions (e.g., repairs, unpaid rent).
  • When and how it will be returned at the end of the lease.

6. Responsibilities for Utilities

Clarify who is responsible for paying utilities such as:

  • Electricity, water, gas, and internet.
  • Shared utility bills for multi-tenant properties.

7. Maintenance and Repairs

Define responsibilities for:

  • Routine maintenance (e.g., lawn care, snow removal).
  • Repairs (e.g., appliances, structural damage).

8. Rules and Restrictions

Set clear rules for tenants, such as:

  • Pets: Whether they are allowed and any associated fees.
  • Smoking: Permitted or prohibited.
  • Subletting: Conditions under which it is allowed.

9. Termination and Renewal

Specify conditions for:

  • Early termination (e.g., notice periods, penalties).
  • Lease renewal: Automatic or requiring a new agreement.

10. Default and Eviction

Outline the steps for:

  • Handling breach of contract (e.g., non-payment of rent).
  • Grounds for eviction.

11. Governing Law

State that the lease agreement will comply with local, state, or federal laws.

12. Signatures

Include spaces for:

  • Landlord’s signature.
  • Tenant’s signature.
  • Date of signing.

Tips for Drafting a Lease Agreement

  1. Use Clear Language: Avoid ambiguity; use straightforward terms.
  2. Include All Key Terms: Cover all aspects of the tenancy to prevent disputes.
  3. Customize for Local Laws: Ensure compliance with state or regional rental laws.
  4. Get Legal Assistance: Consult an attorney for professional drafting.

For legally compliant and customizable lease templates, visit Affordibly’s Legal Templates.

Frequently Asked Questions (FAQs) on Lease Agreements

1. What is a lease agreement?

A lease agreement is a written contract between a landlord and a tenant, specifying the terms for renting a property, including rent, duration, and responsibilities.

2. What is the difference between a lease and a rental agreement?

  • Lease Agreement: Typically long-term (e.g., 6 months to a year) with fixed terms.
  • Rental Agreement: Month-to-month, with terms that can be altered with proper notice.

3. Do I need a lawyer to draft a lease agreement?

While not mandatory, having a lawyer review your lease agreement ensures it complies with local laws and protects your interests.

4. Can I modify a lease agreement during the lease term?

Modifications require mutual consent from both landlord and tenant. The changes must be documented and signed.

5. What happens if a tenant breaks the lease?

  • The landlord can retain part of the security deposit.
  • The tenant may owe rent for the remainder of the lease term unless a replacement tenant is found.

6. Is a verbal lease agreement legally binding?

Verbal agreements can be binding, but written agreements are strongly recommended for clarity and legal enforcement.

7. What should I do if the tenant damages the property?

The landlord can:

  • Use the security deposit to cover repair costs.
  • Pursue legal action for damages exceeding the deposit.

8. Can a lease agreement restrict pets?

Yes, landlords can include clauses prohibiting pets or requiring additional fees for pet-friendly rentals.

9. How much notice must a landlord give to terminate a lease?

Notice periods vary by jurisdiction but typically range from 30 to 90 days.

10. Can I include a clause for automatic rent increases?

Yes, but the increase must be reasonable and comply with local rent control laws.

11. Is a security deposit refundable?

Yes, the security deposit is refundable, minus any deductions for damages or unpaid rent, as specified in the agreement.

12. What happens if a tenant doesn’t pay rent?

The landlord can issue a notice to pay or vacate, followed by eviction proceedings if necessary.

13. Can a tenant terminate a lease early?

Yes, but the tenant may:

  • Be required to pay an early termination fee.
  • Forfeit the security deposit, depending on the lease terms.

14. Can a landlord enter the property without notice?

Landlords must provide reasonable notice (typically 24-48 hours) before entering, except in emergencies.

15. Are online lease agreements valid?

Yes, electronic lease agreements are legally valid, provided they are signed electronically by both parties.

16. Can a lease agreement include a “no subletting” clause?

Yes, landlords can prohibit subletting to maintain control over who occupies the property.

17. What is a rent grace period?

A grace period allows tenants to pay rent a few days past the due date without incurring a late fee.

18. How do I resolve disputes over lease terms?

Disputes can be resolved through:

  • Mediation or arbitration.
  • Small claims court for financial disagreements.

19. Should the lease agreement be notarized?

Notarization is not typically required but can add an extra layer of authenticity.

20. Where can I find lease agreement templates?

You can find professional and customizable templates at Affordibly’s Legal Templates.

 

Lease Terms to Know

Here are some helpful definitions for the legal language commonly present in lease and rental agreement forms:

  • Access: The right to enter a property.
  • Accidents: Artificial or naturally occurring events that may damage a property (fire, flood, earthquake, etc.).
  • Alterations: Modifications made to a property.
  • Appliances: Standard home equipment like a refrigerator or dishwasher.
  • Assignment: The transfer of an interest in a lease.
  • Attorney Fees: A payment made to a lawyer.
  • Condemnation: The government is seizing private property for a public purpose, such as highway construction.
  • Default: When a breach of contract occurs and persists, such as not paying rent or violating other terms of a rental agreement.
  • Furniture: Standard home equipment such as couches, tables, beds, etc.
  • Guarantor/Co-Signer: Someone accountable for paying rent if the tenant cannot.
  • Guests: Short-term occupants of a rental property.
  • Joint and several liabilities: Two or more people are independently held accountable for damages, regardless of who is at fault.
  • Late Rent Fee: An additional, reasonable sum of money paid by a tenant after making a rent payment past the due date listed in the landlord-tenant agreement.
  • Noise Policy: A provision outlining “quiet hours” in the apartment building, condominium, or neighborhood.
  • Notice: A written announcement of some fact or observation.
  • Option to Purchase: The tenant’s right to purchase the rental property later.
  • Parking: Designated spaces where the tenant can keep their vehicles.
  • Pet Policy: The permission or restriction of a tenant’s ability to have an animal in a rental property.
  • Property Maintenance: Involves preserving a rental unit and determining who is responsible for tasks such as cutting the grass, removing the garbage, and unclogging the kitchen and bathroom drains.
  • Renewal: A tenant’s option to continue the lease.
  • Renter’s Insurance: A paid policy that protects personal belongings against theft or damage.
  • Severability: A clause of a lease stating that if one part of the agreement is invalid for any reason, the rest of the lease is still enforceable.
  • Smoking Policy: The permission or restriction of a tenant’s smoking ability inside a rental property.
  • Sublet: A temporary housing arrangement between current and new tenants to rent all or part of the currently leased property. The subletting period must be for less than the lease term.
  • Successor: Someone who takes over the obligations of a lease from a tenant or landlord.
  • Utilities: A public or private service supplying electricity, water, gas, or trash collection to a property.
  • Waterbed: A water-filled furnishing used to sleep and not typically permitted in most rental properties.

Landlord-Tenant Acts

Here are the general landlord-tenant acts by state:

Alabama Hawaii Massachusetts New Mexico South Dakota
Alaska Idaho Michigan New York Tennessee
Arizona Illinois Minnesota North Carolina Texas
Arkansas Indiana Mississippi North Dakota Utah
California Iowa Missouri Ohio Vermont
Colorado Kansas Montana Oklahoma Virginia
Connecticut Kentucky Nebraska Oregon Washington
Delaware Louisiana Nevada Pennsylvania West Virginia
Florida Maine New Hampshire Rhode Island Wisconsin
Georgia Maryland New Jersey South Carolina Wyoming

Landlord’s Access

Tenants have the right to privacy when renting a house. However, landlords may need access to the property for maintenance or inspections.

Nearly every state requires landlords to give their tenants advance notice before entering a rental unit. Use the table below to determine how much notice you must give in your state and research the appropriate law:

State Advance Notice Requirement Law
Alabama 2 days Ala. Code § 35-9A-303
Alaska 1 day Alaska Stat. § 34.03.140
Arizona 2 days Ariz. Rev. Stat. § 33-1343
Arkansas Not required N/A
California – 1 day
– 2 days for move-out rental inspection		 Cal. Civ. Code § 1954
Colorado Not required N/A
Connecticut Reasonable written or verbal notice Conn. Gen. Stat. § 47a-16
Delaware 2 days Del. Code tit. 25 § 5509
Florida 12 hours Fla. Stat. § 83.53
Georgia Not required N/A
Hawaii 2 days Haw. Rev. Stat. § 521-53
Idaho Not required N/A
Illinois Not required N/A
Indiana Reasonable written or verbal notice Ind. Code § 32-31-5-6
Iowa 1 day Iowa Code § 562A.19
Kansas Reasonable written or verbal notice Kan. Stat. § 58-2557
Kentucky 2 days Ky. Rev. Stat. § 383.615
Louisiana Not required N/A
Maine 1 day Me. Stat. tit. 14 § 6025
Maryland Not required N/A
Massachusetts Reasonable written or verbal notice Mass. Gen. Laws ch. 186 § 15B
Michigan Not required N/A
Minnesota Reasonable written or verbal notice Minn. Stat. § 504B.211
Mississippi Not required N/A
Missouri Not required N/A
Montana 1 day Mont. Code § 70-24-312
Nebraska 1 day Neb. Rev. Stat. § 76-1423
Nevada 1 day Nev. Rev. Stat. § 118A.330
New Hampshire Reasonable written or verbal notice NH Rev. Stat. § 540-A:3
New Jersey 1 day N.J.A.C. 5:10-1.1
New Mexico 1 day NM Stat. § 47-8-24
New York Not required N/A
North Carolina Not required N/A
North Dakota Reasonable written or verbal notice N.D. Cent. Code § 47-16-07.3
Ohio 1 day Ohio Rev. Code § 5321.04
Oklahoma 1 day Okla. Stat. tit. 41 § 128
Oregon 1 day ORS § 90.322
Pennsylvania Not required N/A
Rhode Island 2 days RI Gen. Laws § 34-18-26
South Carolina 1 day SC Code § 27-40-530
South Dakota 1 day SD Codified Law § 43-32-32
Tennessee 1 day Tenn. Code § 66-28-403
Texas Not required N/A
Utah 1 day Utah Code 57-22-4
Vermont 2 days 9 V.S.A. § 4460
Virginia 1 day Va. Code § 55.1-1229
Washington – 2 days with written or verbal notice
– 1 day for the intent to show the unit		 Wash. Rev. Code § 59.18.150
West Virginia Not required N/A
Wisconsin “…advance notice and at reasonable times” Wis. Stat. § 705.05
Wyoming Not required N/A

Security Deposit

Each state governs the maximum amount a landlord can collect as a security deposit from a renter. Some states also require landlords to refund security deposits to tenants within a certain timeframe (perhaps with interest).

Typically, landlords can take the following expenditures from tenants’ security deposits:

Unpaid rent
Cleaning expenses
Key replacement costs
Cost of repairing problems beyond normal wear and tear
Any other amount legally allowed under the lease

Use the chart below to determine the maximum security deposit limit in your state, whether it must be maintained in a separate account, and how long you have to refund it once the lease expires:

State Maximum Deposit Limit Held in Separate Account Refund Law
Alabama 1 month’s rent Not required 60 days to return deposit Ala. Code § 35-9A-201
Alaska 2 months’ rent, unless monthly rent is greater than $2000 Escrow account required – 14 days to return deposit
– 30 days to return deposit if tenant doesn’t provide proper notice		 Alaska Stat. § 34.03.070
Arizona 1½ months’ rent, unless tenant volunteers to pay more Not required 14 days to return deposit Ariz. Rev. Stat. § 33-1321
Arkansas 2 months’ rent unless landlord owns fewer than 6 rental units Not required 60 days to return deposit Ark. Code § 18-16-304 and Ark. Code § 18-16-305
California 2 months rent (if unfurnished) or 3 months’ rent (if furnished) Not required 21 days to return deposit Cal. Civ. Code § 1950.5
Colorado No regulation Not required – 30 days to return deposit unless otherwise stated in the lease
– 60 days maximum if not stated in the lease		 Colo. Rev. Stat. § 38-12-103
Connecticut – 2 months’ rent if tenant is under 62 years old
– 1 month’s rent if tenant is over 62 years old		 Interest-bearing account required 30 days to return deposit Conn. Gen. Stat. § 47a-21 to Conn. Gen. Stat. § 47a-22a
Delaware 1 month’s rent for 1-year lease agreements (if unfurnished) Escrow account required 20 days to return deposit Del. Code § 5514
Florida No regulation Interest-bearing or non interest-bearing escrow account required (landlord’s choice) – 15 days to return deposit
– 30 days if any amount is retained		 Fla. Stat. § 83.49
Georgia No regulation Escrow account required except if landlord owns fewer than 11 rental units (unless managed by a third party) 30 days to return deposit Ga. Code § 44-7-31 to Ga. Code § 44-7-37
Hawaii 1 month’s rent Not required 14 days to return deposit Haw. Rev. Stat. § 521-44
Idaho No regulation Not required – 21 days to return deposit unless otherwise stated in the lease
– 30 days maximum if not stated in the lease		 Idaho Code § 6-321
Illinois No regulation Not required – 45 days to return deposit
– 30 days if any deductions made		 765 ILCS 705/
Indiana No regulation Not required – 21 days to return deposit unless otherwise stated in the lease
– 30 days maximum if not stated in the lease		 Ind. Code § 32-31-3
Iowa 2 months’ rent Federally-insured account required 30 days to return deposit Iowa Code § 562A.12
Kansas 1 month’s rent (if unfurnished) or 1½ months’ rent (if furnished) Not required 30 days to return deposit Kan. Stat. § 58-2550
Kentucky No regulation Escrow account required – 30 days to return the security deposit
– 60 days for the tenant to dispute any deductions		 Ky. Rev. Stat. § 383.580
Louisiana No regulation Not required 30 days to return deposit La. Stat. tit. 9 § 3251
Maine 2 months’ rent Not required 30 days to return deposit Me. Stat. tit. 14 § 710-A
Maryland 2 months’ rent Escrow account required 45 days to return deposit Md. Code, Real. Prop. § 8-203
Massachusetts 1 month’s rent Interest-bearing escrow account required 30 days to return deposit Mass. Gen. Laws ch. 186 § 15B
Michigan 1½ months’ rent Not required 30 days to return deposit Mich. Comp. Laws § 554.615
Minnesota No regulation Not required 21 days to return deposit Minn. Stat. § 504B.178
Mississippi No regulation Not required 45 days to return deposit Miss. Code § 89-8-21
Missouri 2 months’ rent Not required 30 days to return deposit Mo. Rev. Stat. § 535.300
Montana No regulation Not required – 10 days to return deposit
– 30 days if any amount is retained		 Mont. Code § 70-25-201
Nebraska 1 month’s rent Not required 14 days to return deposit Neb. Rev. Stat. § 17-1416
Nevada 3 months’ rent Not required 30 days to return deposit Nev. Rev. Stat. § 118A.242 to Nev. Rev. Stat. § 118A.250
New Hampshire 1 month’s rent or $100 (whichever is greater) Not required 30 days to return deposit NH Rev. Stat. § 540-A:6 to NH Rev. Stat. § 540-A:8
New Jersey 1½ months’ rent Not required 30 days to return deposit NJ Rev. Stat. § 46:8-19
New Mexico – 1 month’s rent for lease terms less than 1 year
– No limit for lease terms greater than 1 year		 Not required 30 days to return deposit NM Stat. § 47-8-18
New York No regulation Not required 14 days to return deposit Emergency Tenant Protection Act 576/74
North Carolina – 2 weeks’ rent for week-to-week lease agreements
– 1½ months’ rent for month-to-month lease agreements
– 2 months’ rent for yearly leases		 Trust account or bank bond required – 30 days after end of the tenancy to return the deposit
– 60 days if any deductions cannot be determined within 30 days		 Article 6 Tenant Security Deposit Act
North Dakota 1 month’s rent Escrow account required 30 days to return deposit ND Cent. Code § 47-16-07.1
Ohio No regulation Not required 30 days to return deposit Ohio Rev. Code § 5321.16
Oklahoma No regulation Federally-insured escrow account required 45 days to return deposit Okla. Stat. tit. 41 § 115
Oregon No regulation Not required 31 days to return deposit ORS § 90.300
Pennsylvania 2 months’ rent Escrow account required for deposits greater than $100 or any amount held for longer than 2 years 30 days to return deposit 68 Pa. Stat. § 250.511a
Rhode Island 1 month’s rent Not required 20 days to return deposit RI Gen, Laws § 34-18-19
South Carolina No regulation Not required 30 days to return deposit SC Code § 27-40-410
South Dakota 1 month’s rent Not required 14 days to return deposit SD Codified Laws § 43-32-6.1 and SD Codified Laws § 43-32-24
Tennessee No regulation Escrow account required 30 days to return deposit Tenn. Code § 66-28-301
Texas No regulation Not required 30 days to return deposit Tex. Prop. Code § 92.101 – 92.110
Utah No regulation Not required 30 days to return deposit Utah Code § 57-17-3
Vermont No regulation Not required 14 days to return deposit 9 V.S.A. § 4461
Virginia 2 months’ rent Not required 45 days to return deposit Va. Code § 55.1-1226
Washington No regulation Escrow account required 30 days to return deposit Wash. Rev. Code § 59.18.280
West Virginia No regulation Not required 60 days to return deposit W. Va. § 37-6A-2
Wisconsin No regulation Not required 21 days to return deposit Wis. Stat. ATCP § 134.06
Wyoming No regulation Not required – 30 days to return deposit
– additional 30 days (60 days total) if deductions are made for damage		 Wyo. Stat. § 1-21-1208