Residential lease
IN PLAIN ENGLISH

The lease specifies the monthly rent amount, when it's due (almost always the first), accepted payment methods, and any grace period before a payment is considered late. In a fixed-term lease, rent is generally locked for the duration. In a month-to-month tenancy, rent can usually be raised with 30-60 days' notice, depending on jurisdiction — some cities with rent stabilization cap how much and how often.

A deposit held by the landlord against unpaid rent and damage beyond normal wear and tear. State law caps the maximum amount (often one or two months' rent), dictates whether it must be held in a separate or interest-bearing account, and sets a deadline — typically 14 to 60 days after move-out — by which the landlord must return it or itemize deductions in writing. The lease usually restates these rules but does not override them.

Defines the start date, end date, and what happens at the end. Some leases simply expire and convert to month-to-month by default; others auto-renew for another fixed term unless the tenant gives written notice within a specific window. The renewal mechanic is one of the most consequential clauses in the document and one of the most commonly skimmed.

Describes what happens if the tenant stays past the end of the term without signing a renewal. Typically the tenancy converts to month-to-month, often at a higher "holdover" rent rate (sometimes 125-150% of the prior rent). Some leases treat holding over as a breach that allows the landlord to start eviction immediately.

Covers whether and how the tenant can end the lease before the term is up, and what it costs. Common formulas include forfeiting the security deposit, paying one or two months' rent as a fee, or remaining liable for rent until the unit is re-rented. Federal law gives active-duty service members the right to break a lease under SCRA, and many states give similar rights to victims of domestic violence.

Specifies whether the tenant can sublet the unit or assign the lease to someone else, and whether the landlord's consent is required. Many leases prohibit subletting outright; others allow it with written approval. Short-term rental platforms like Airbnb have made this clause more contentious — some leases now explicitly prohibit any rental shorter than 30 days.

Allocates responsibility between landlord and tenant for keeping the property in working order. Landlords are generally on the hook for structural issues, plumbing, heating, and anything that affects habitability — most states impose this as an "implied warranty of habitability" that can't be waived. Tenants typically handle minor things like replacing light bulbs and keeping the unit clean. Where things get fuzzy is appliances, pest control, and HVAC servicing, so it's worth reading closely.

Covers what the tenant can and can't change about the unit — painting, mounting TVs, installing shelves, swapping fixtures. Most leases require written consent for anything beyond hanging picture frames, and many require the tenant to restore the unit to its original condition at move-out.

States whether pets are allowed, what kinds, weight or breed restrictions, and any pet rent or non-refundable pet deposit. Service animals and emotional support animals are protected under the federal Fair Housing Act and generally cannot be excluded by a no-pets policy or charged pet fees, regardless of what the lease says.

Limits who can live in the unit and for how long guests can stay. Standard language caps named occupants and treats anyone staying longer than a set period (often 14 days in a 6-month window) as an unauthorized occupant. This clause exists mainly to prevent the unit from quietly becoming a different household than the landlord agreed to rent to.

Specifies which utilities are included in rent and which the tenant is responsible for setting up and paying directly. Water and trash are commonly included in multi-unit buildings; electricity, gas, and internet usually aren't. In some buildings the landlord bills back utilities through a sub-meter or a flat fee called RUBS, which is worth flagging if you see it.

Sets the penalty for paying rent late and for bounced payments. Most states cap late fees at a "reasonable" amount, often expressed as a percentage of monthly rent (5-10% is typical) or a flat dollar figure. A grace period of 3-5 days before the fee kicks in is standard, but not universal.

Describes when and how the landlord can enter the unit. Almost every state requires advance notice (commonly 24 hours) for non-emergency entry, and limits entry to reasonable hours. Emergencies — burst pipe, fire, suspected gas leak — are an exception. A clause that gives the landlord broad rights to enter "at any time" is generally not enforceable but signals a landlord who hasn't kept up with the law.

States which state's law applies and where disputes get heard. For residential leases this is almost always the state where the property sits, which is also where landlord-tenant law overrides whatever the lease says. Worth a glance to confirm the lease isn't trying to send disputes somewhere odd.

The attorney-fee clause says who pays legal costs if there's a dispute — sometimes "prevailing party," sometimes one-sided in favor of the landlord. Many states convert one-sided fee clauses into mutual ones automatically. Severability says that if any clause is held unenforceable, the rest of the lease stays intact, which is mostly boilerplate but does what it says.