Lease Agreement Guide: Terms, Deposits and Local Rules

Term, renewal, and holdover

Fixed-term leases run to a stated end date; periodic tenancies roll month to month until terminated with notice. Say which you have, and state the notice period for termination in days.

Add a holdover clause covering what happens if the tenant stays past the end date — typically conversion to month-to-month, sometimes at an increased rate. Without one, the default statutory outcome may not be what either side expected.

Security deposits: check the cap before you write the number

• Many states cap the deposit at one or two months' rent; some cap it for certain landlord categories only.
• Deadlines for returning the deposit after move-out are statutory and short — commonly 14 to 30 days.
• Several states require an itemised statement of deductions, and penalise landlords who fail to provide one.
• Some states require deposits held in a separate account, occasionally interest-bearing.
• Florida requires deposits over $100 to be held in a Florida banking institution or bonded.

Rent, late fees, and increases

State the amount, the due date, the accepted payment methods, and the grace period. Late fees must be reasonable; punitive figures get struck.

For fixed-term leases, rent increases mid-term are not permitted unless the lease provides for them. For periodic tenancies, notice periods for increases are statutory and vary — and rent-control jurisdictions add caps on top, such as California's AB 1482.

Maintenance, repairs, and entry

Split responsibilities explicitly: structural and systems to the landlord, day-to-day and tenant-caused damage to the tenant. Every state implies a warranty of habitability for residential property that cannot be waived, however the lease is worded.

Entry rights need a notice period — 24 hours is the common standard — plus an emergency exception. Entry clauses without notice requirements are among the most frequently unenforceable provisions in amateur leases.

Commercial leases differ substantially

Commercial tenants get far fewer statutory protections, so the contract carries more weight. Negotiate the rent structure (gross, net, triple net), CAM charges and their audit rights, permitted use, exclusivity, assignment and subletting consent standards, and any personal guarantee.

A personal guarantee turns a company obligation into your own. If you must give one, negotiate a cap or a burn-off after a period of good payment history.