What to Include in a Lease Agreement in 2026 (State-by-State)

A lease is the single document your business rests on. Below: the clauses every lease needs, the mandatory disclosures by state (lead paint, mold, bed bugs, flooding), the clauses worth including, and the ones you should drop because they're unenforceable.

A lease agreement is not a formality. It's the document a judge reads when your tenant says you didn't give notice, you say you did; when you say the tenant caused damage, they say it was pre-existing; when you charge a late fee, they say the lease doesn't allow it. Courts enforce what's in the lease and ignore what isn't. Courts also strike clauses that conflict with local law, which means a lease with illegal clauses can leave you worse off than one without them — the illegal clause may void provisions around it. This guide covers what belongs in every lease, what mandatory disclosures your state requires, and what to cut.

The universal clauses

These are in every residential lease that holds up in court. If your current lease template is missing any of these, add them before the next signing.

1. Parties and premises

Full legal names of all tenants (everyone over 18 who will occupy the unit must be on the lease), landlord or management company name, and the property address with unit number. Generic descriptions ("the property on Oak Street") won't hold up in court — use the full street address.

2. Lease term

Start date, end date, and what happens at the end. Three options: the lease converts to month-to-month automatically (most common), the lease terminates and the tenant must vacate, or renewal requires a new signed lease. State which applies. If converting to month-to-month, specify the notice period required to terminate.

3. Rent

Monthly amount, due date (typically the 1st), grace period (e.g., "no later than the 5th"), late fee amount, acceptable payment methods, and where to send payment. Include language that partial payment doesn't constitute full satisfaction of rent.

4. Security deposit

Amount, how it's held (trust account per state requirement), conditions for deduction, and the state-mandated return timeline. Many states require you to state in the lease whether the deposit is held in an interest-bearing account.

5. Occupancy

Maximum number of occupants. List everyone authorized to reside in the unit. Guests are typically permitted for 7–14 consecutive days; beyond that, occupancy rules apply. Unauthorized occupants are grounds for notice and cure.

6. Utilities and services

Which utilities the landlord pays (if any) and which the tenant pays. Be specific: "Tenant is responsible for electric, gas, and internet. Landlord provides water/sewer and trash." Vague utility clauses lead to disputes.

7. Maintenance and repair obligations

Tenant's obligations: keep the unit clean, dispose of trash, report needed repairs promptly, not cause damage beyond normal wear and tear. Landlord's obligations: maintain the premises in habitable condition, make timely repairs, provide hot water and heat per state law.

8. Entry and notice

The notice required before landlord entry (most states: 24 hours, some 48 hours). Emergency exception: no notice required for immediate life-safety situations. Routine inspection frequency if applicable.

9. Default and remedies

What constitutes a default (non-payment, lease violation, abandonment), the notice-and-cure period before you can proceed with eviction, and your remedies. Reference your state's notice requirements — don't write a 3-day notice provision in a state that requires 14 days.

10. Lease termination / early departure

Notice required to vacate (typically 30 days for month-to-month, or terms specified for fixed-term). Early termination fee if applicable — state whether it's a fixed fee or forfeiture of deposit plus re-letting costs. Some states cap early termination fees.

11. Holdover

What happens if the tenant stays past the lease end without a new agreement. Most leases convert to month-to-month at the same rent. Some charge a higher holdover rent (typically 150% of the monthly rate) to incentivize timely vacation.

12. Assignment and subletting

Whether the tenant may sublet, assign the lease, or use the unit as a short-term rental (Airbnb-style). Most residential leases prohibit assignment and subletting without prior written landlord approval. Without this clause, the tenant's ability to sublet may default to state law, which varies.

13. Alterations

Whether the tenant may paint, install fixtures, drill holes, add locks, or make other modifications. Typical language: minor picture-hanging permitted; structural or cosmetic alterations require prior written approval.

14. Pets

Permit or prohibit. If permitted, reference the pet addendum. If prohibited, state the policy clearly. Include an exception that this policy does not prevent accommodation of service animals or ESAs with proper documentation. (A blanket no-pet clause that also bars service animals is a Fair Housing violation — the exception saves you.)

15. Joint and several liability

If there are multiple tenants: "All tenants are jointly and severally liable for all obligations under this lease." This means you can collect full rent from any one tenant, and that tenant's recourse is against their co-tenants, not you.

16. Lead paint disclosure (required for pre-1978 properties)

This is a federal requirement under Title X, not optional. If the property was built before 1978, the disclosure must be in or attached to the lease. See the mandatory disclosures section below.

17. Attorney's fees

In states that allow it (most do), include a prevailing-party attorney's fees clause. This deters frivolous litigation — both you and the tenant face potential fee exposure if you lose.

18. Governing law and jurisdiction

The lease is governed by the laws of the state in which the property is located. The venue for any dispute is the county in which the property is located. This prevents a tenant from filing in a different county for tactical reasons.

19. Entire agreement

"This agreement, together with any attached addenda, constitutes the entire agreement between the parties and supersedes all prior oral or written agreements." This clause prevents "but you said" arguments about verbal promises made during negotiations.

20. Notice provisions

How formal notices are delivered (certified mail to the unit address, email if tenant consented in writing, posting on the door per state law). State what counts as effective notice. Mismatched notice provisions between your lease and your pay-or-quit notices create procedural problems in court.

Mandatory disclosures by state

Several categories of disclosure are required by federal or state law regardless of what your lease says. Missing them doesn't just expose you to penalties — in some states it voids your ability to claim the deposit.

Federal mandatory disclosures (all states):

Lead paint (Title X, applies to all pre-1978 housing): Every lease for a pre-1978 property must include or attach:

• A signed disclosure statement indicating whether the landlord has knowledge of lead-based paint or lead-based paint hazards
• The EPA-approved pamphlet "Protect Your Family from Lead in Your Home"
• Opportunity for the tenant to conduct an inspection before signing (you don't have to do the inspection — you just have to offer the right)

Penalty for non-compliance: up to $21,664 per violation (civil). For the full lead paint disclosure guide, see lead paint disclosure requirements for landlords.

State-level mandatory disclosures (selected):

Common disclosures most operators don't include but should:

• Mold: Many states require disclosure of known mold conditions. Even where not required, a mold acknowledgment (tenant confirms inspection and accepts condition) protects you if they later claim pre-existing mold.
• Bed bugs: NYC mandates a bedbug disclosure history. Several other cities follow. Even where not required, a bedbug inspection acknowledgment reduces liability.
• Sex offender registry: Several states (including Texas, Indiana, Kansas) require disclosing that the tenant can check the state sex offender registry. A standard clause pointing tenants to the state registry is safe practice nationally.
• Flooding/flood zone: FEMA maps are public; if your property is in a flood zone, disclosure protects you. Some states (CA, NY) now require flooding history disclosure.

Optional clauses worth including

These clauses aren't required in most states but add meaningful protection.

Renters insurance requirement

Require tenants to maintain renters insurance at a minimum of $100,000 liability coverage during the tenancy. Have them list you as an additional interested party. Benefits: reduces small tenant-caused claims on your landlord policy, reduces disputes about liability when a tenant-caused event affects a neighbor.

Parking addendum (if parking is provided)

Specify the space number(s), vehicle description, and whether the space is included in rent or charged separately. Include rules: no long-term parking of inoperable vehicles, no RVs or trailers without approval, no oil changes on premises.

Smoking prohibition

Even where not required by local ordinance, a clear lease clause prohibiting smoking inside the unit and within 25 feet of the building is worth including. Smoke damage is significant and the clause gives you a clear basis for deductions.

Move-in condition report reference

Reference the attached move-in inspection report and state that it is incorporated into the lease and constitutes the baseline condition assessment. This creates the evidentiary chain you need for move-out deductions.

Satellite dish and antenna

FCC rules restrict your ability to prohibit satellite dishes and antennas (OTARD rule). However, you can regulate placement — require professional installation, prohibit penetrations of the roof, require removal at move-out, and specify that the tenant is responsible for damage. A clause addressing this is better than silence.

Air conditioning and heat limitations

Some states have legal requirements around temperature ranges. A clause that specifies what heating and cooling equipment is provided (if any) and who is responsible for maintenance (tenant's window AC unit vs landlord-supplied central air) prevents disputes.

Key deposit and lockout procedures

A small key deposit ($50–$100) for duplicate keys issued. Lockout during business hours: tenant may contact you for access. Lockout after hours: tenant is responsible for locksmith costs. This separates your emergency maintenance obligation from the tenant locking themselves out.

Clauses to drop

These clauses are commonly found in older lease templates and are either unenforceable or create liability.

"Tenant waives right to jury trial"

Unenforceable in most states for residential leases. Strikes the wrong tone and may affect the enforceability of surrounding provisions.

"Landlord not liable for any damage, under any circumstances"

Blanket liability waivers are unenforceable and in some states expose you to penalties for including them. Narrow, specific liability exclusions (e.g., landlord not liable for theft of tenant's personal property) may be permissible — blanket exclusions are not.

"Tenant waives all legal rights"

Courts will not enforce this. Any clause requiring a tenant to waive statutory rights (right to habitable conditions, right to security deposit return, right to proper notice) is void as a matter of law.

"Landlord may enter at any time without notice"

Violates the notice requirements in virtually every state. Makes the rest of your entry clauses unenforceable even if they're correct.

"Tenant is responsible for all repairs"

You cannot waive your habitability obligation by contract. The landlord's duty to maintain the premises in habitable condition is a statutory minimum that lease language cannot reduce.

"Security deposit is nonrefundable"

In most states, a security deposit is by definition refundable. Calling it nonrefundable in the lease may convert it to an unenforceable fee — or worse, expose you to deposit-return liability regardless of your intent.

Overly broad late-fee clauses

"A late fee of 10% per day will be charged on all overdue amounts" — this is usurious in most states and courts will strike it, often refusing to enforce any late-fee provision in the lease as a result. Write the late fee at your state's permissible rate.

Top-5-state appendix (NY, CA, TX, FL, IL)

The table below summarizes the mandatory disclosures and key state-specific requirements for the five largest landlord-tenant law markets. This is not a substitute for reading your state's statute — use it as a checklist for review.

New York — key nuances:

The Housing Stability and Tenant Protection Act of 2019 changed the New York landlord-tenant landscape significantly. Key points for leases: security deposits are capped at one month's rent. Application fees are capped at $20 (actual screening cost). Late fees are capped at $50 or 5% of monthly rent. For NYC units subject to rent stabilization, the lease must use the Division of Housing and Community Renewal (DHCR) rider. Good Cause Eviction (Local Law 9, effective April 2024) creates additional just-cause requirements for covered units.

California — key nuances:

AB 1482 (Tenant Protection Act) applies to most multifamily units 15+ years old that are not single-family or condo. Covered units have a 5% + CPI annual increase cap (max 10%) and just-cause eviction requirements. The lease must disclose whether the unit is covered. California also prohibits certain late fees (must be reasonable), prohibits nonrefundable deposits (all deposits are refundable), and has strict security deposit return requirements (21-day itemization with receipts).

Texas — key nuances:

Texas is relatively landlord-friendly. No statewide rent control, no cap on security deposits, no mandatory grace period. The 3-day notice for non-payment of rent is the standard. Leases should include specific language about the right to enter (24-hour notice is best practice even where "reasonable" is the standard), and must include the disclosure about the Property Code (Section 92 of the Texas Property Code governs most landlord-tenant matters).

Florida — key nuances:

The 15/30-day security deposit rule is a trap: if you're making NO deductions, you have 15 days to return. If you're making deductions, you have 30 days to send notice of your intent to make deductions (not the itemization — the notice). Then another 30 days to finalize. Missing the first deadline means you forfeit your right to make any deduction. The radon disclosure is required by statute and should be a standard attachment to every Florida lease.

Illinois — key nuances:

Chicago is significantly more regulated than the rest of Illinois under the Chicago Residential Landlord-Tenant Ordinance (RLTO). Landlords in Chicago must attach an RLTO summary, maintain security deposits in interest-bearing accounts (CBOE 90-day T-bill rate + 1%), provide a receipt for deposit within 10 days, and return within 30 days. Outside Chicago, Illinois law is less prescriptive, but basic tenant protections still apply.

For the pet addendum template and ESA rules, see our pet policy guide for rentals. For the lead paint disclosure specifics, see lead paint disclosure requirements for landlords.

FAQ

Do I need a new lease for every term, or can I use a lease amendment?

For fixed-term leases converting to month-to-month: a lease amendment is simpler and usually sufficient. For significant changes (rent increase, adding or removing a tenant, changing terms materially): a new lease is cleaner. Courts handle both; the question is administrative simplicity vs full documentation.

Can I use a lease template I downloaded from the internet?

Only if you've verified that it was written for your state, reviewed by an attorney licensed in your state, and updated for current law. Many templates online are 5–10 years old and miss post-2019 changes in states like New York or California. The template is a starting point, not a finished document.

What if a tenant refuses to sign the lead paint disclosure?

You cannot legally begin the tenancy without a signed disclosure for a pre-1978 property. If the tenant won't sign, you cannot lease to them under these circumstances — or you accept the federal violation risk, which is significant. In practice, this is rarely a genuine tenant dispute; most applicants sign without reading the disclosure closely.

Is an email signature on a lease valid?

Yes, in virtually all states under the ESIGN Act and UETA, an electronic signature on a lease is legally equivalent to a wet signature. Use a compliant e-signature platform (DocuSign, Adobe Sign, HelloSign) that creates an audit trail showing when each party signed.

How often should I update my lease template?

Review it annually, and whenever your state passes significant landlord-tenant legislation. After NY's HSTPA in 2019 and California's AB 1482, landlords who didn't update their templates were signing non-compliant leases for months afterward. Annual review takes 1 hour with an attorney and prevents months of exposure.

What's the minimum lease for a month-to-month tenancy?

Even month-to-month tenancies benefit from a written lease. At minimum: parties, premises, rent amount, due date, late fee, occupancy rules, entry notice, and deposit terms. A one-page agreement is better than a verbal one in every state. The risk of a verbal month-to-month is that the tenant's memory and yours will differ.

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This isn't legal advice. Consult an attorney licensed in your state before using or modifying any lease template for your jurisdiction.