What a Lease Does
A lease creates a landlord-tenant relationship. The tenant gets the right to possess the property and use it privately; the landlord gets rent and keeps ownership. Both sides take on obligations under the lease and under state and local landlord-tenant law.
Residential leases are mainly governed by state law, and many cities add their own rules on rent, deposits, and evictions. About 20 states have adopted some version of the Uniform Residential Landlord and Tenant Act, while others have their own statutes.
Types of Tenancies
| Type | How it works | How it ends |
|---|---|---|
| Fixed-term lease | Runs for a set period, often 6 or 12 months | Ends on the end date unless renewed; early termination may cost the tenant |
| Month-to-month (periodic) | Renews automatically each month | Either side gives written notice, often 30 days, though some states and cities require more |
| Tenancy at will | No fixed term, often without a written lease | Notice required by state law |
| Holdover | Tenant stays after the lease ends | Landlord may accept rent and create a new periodic tenancy, or start eviction |
Written vs. Oral Leases
Oral leases can be valid for short terms, but under each state's statute of frauds, a lease for more than one year generally must be in writing and signed to be enforceable. A written lease is always the safer choice because it proves what was agreed.
Key Clauses to Read Before Signing
- Parties and property: Names of all tenants and the exact unit, plus any parking or storage
- Term: Start and end dates, renewal terms, and notice needed to leave
- Rent: Amount, due date, accepted payment methods, grace period, and late fees
- Security deposit: Amount, where it is held if state law requires, and conditions for return
- Repairs and maintenance: Who handles which repairs and how to request them
- Utilities: Which utilities the tenant pays
- Entry: How much notice the landlord gives before entering
- Occupants, guests, and pets: Limits and any pet deposits or fees
- Subletting and assignment: Whether the tenant can sublet and whether landlord consent is required
- Early termination: Fees or procedures for ending the lease early
Terms That Are Usually Unenforceable
Many states refuse to enforce lease clauses that try to take away tenant protections, such as:
- Waiving the landlord's duty to keep the unit habitable
- Allowing the landlord to change locks or remove belongings without a court order
- Waiving the tenant's right to notice or a court hearing before eviction
- Making the tenant pay the landlord's attorney fees in all cases while barring the tenant from recovering them, where state law makes such fee clauses mutual
- Charging deposits or fees above state limits
Required Disclosures
Landlords must provide certain disclosures. Under federal law, for housing built before 1978, landlords must give tenants an EPA-approved lead hazard pamphlet and disclose known lead-based paint hazards before the lease is signed (42 U.S.C. § 4852d). States add their own disclosures, such as mold, flood zones, bed bug history, or the identity of the property manager.
Fair Housing Applies to Leasing
The federal Fair Housing Act prohibits refusing to rent, setting different terms, or advertising preferences based on race, color, religion, sex, national origin, familial status, or disability. Landlords must also allow reasonable accommodations and modifications for tenants with disabilities.
Breaking a Lease Early
A tenant who leaves before a fixed-term lease ends may owe rent until the unit is re-rented, but in most states the landlord must make reasonable efforts to re-rent the unit (mitigate damages) instead of charging rent for the entire remaining term. Many states also allow early termination without penalty in specific situations, such as:
- Active military duty under the federal Servicemembers Civil Relief Act
- Domestic violence, sexual assault, or stalking, with documentation
- A unit that becomes uninhabitable
