Copyright © Nolo Press Leases and Rental Agreements This article is adapted from Every Landlord's Legal Guide by Attorney Janet Portman, Ralph Warner and Marcia Stewart. DISCLAIMER : THIS IS NOT LEGAL ADVICE AND SHOULD NOT BE RELIED UPON. THE LAWS OF YOUR STATE MAY BE DIFFERENT. PLEASE CONSULT AN ATTORNEY BEFORE ACTING.

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A lease or rental agreement is a contract that forms the legal basis for the landlord-tenant relationship. 1. Why is it important to sign a lease or rental agreement? The lease or rental agreement is the key document of the tenancy, setting out important issues such as: the length of the tenancy the amount of rent and deposits the tenant must pay the number of people who can live on the rental property who pays for utilities whether the tenant may have pets whether the tenant may sublet the property the landlord's access to the rental property who pays attorneys' fees if there is a lawsuit. Leases and rental agreements should always be in writing, even though most states allow them to be oral (spoken). While oral agreements may seem easy and informal, they often lead to disputes. If a tenant and landlord later disagree about key agreements, such as whether or not the tenant can sublet, the end result is all too likely to be a court argument over who said what to whom, when and in what context. This is particularly a problem with long-term leases, so most states prohibit oral agreements that are to last for one year or more. 2. What's the difference between a rental agreement and a lease? The big difference is the period of occupancy. Written rental agreements provide for a tenancy for a short period (often 30 days). The tenancy is automatically renewed at the end of this period unless the tenant or landlord end it by giving written notice, typically 30 days. For these month-to-month rentals (meaning the rent is paid monthly), the landlord can change terms of the agreement with proper written notice (subject to any rent control laws). This notice is usually 30 days, but can be shorter in some states if the rent is paid weekly or bi-weekly. A written lease gives the tenant the right to occupy a rental unit for a set term--most often for six months or a year but sometimes longer--as long as the tenant pays the rent and complies with other lease provisions. Unlike a rental agreement, when a lease expires it does not usually automatically renew itself (a tenant who stays on with the landlord's consent will generally be considered a month-to-month tenant). With a fixed-term lease, the landlord cannot raise the rent or change other terms of the tenancy during the lease, unless they are specifically called for in the lease, or the tenant agrees. 3. What happens if a tenant breaks a long-term lease? As a general rule, neither the tenant nor his or her landlord may properly break the lease before the term ends unless the other party significantly violates the lease. This means that a tenant can legally move out for a good cause--for example, if his landlord fails to make necessary repairs. If the tenant breaks the lease without good cause, he'll be responsible for the remainder of the rent due under the lease term. In most states, however, a landlord has a legal duty to try to find a new tenant as soon as possible--no matter what the tenant's reason for leaving--rather than charge him for the total remaining rent due under the lease.