Leases Explained

A lease is a legal contract between a property owner and an individual or company who is granted the ability to utilize that property for a specific purpose. A lease can be either oral or written. It is always recommended to have a written lease. There are many different types of leases, such as cell phone leases, auto leases, and property leases, to name a few.

A residential lease allows someone to rent a home or an apartment to live in. The parties of this contract are:

• Landlord: The individual or management company that rents out the property.
• Tenant: The person(s) renting the property to occupy as their home.

Know what is in your lease. Some common items include:

Term: This is the length of the lease. Typically, the lease will be for a period of one year. However, a lease can be for any length of time. Be aware of what happens at the end of the lease. The lease may state that a tenant must renew the lease, or it may say that the lease will convert to a month-to-month tenancy. A month-to-month tenancy is what it sounds like—a repeating month-long lease. Be aware that if you are in a month-to-month tenancy, the landlord or tenant must only give 30 days’ notice before the lease ends. If the lease term is more than one year, it must be in writing, or it is unenforceable.

Description of Property: A lease must accurately describe the property being leased.

Payment Method: A lease must state how the tenant will pay the landlord if the landlord has a preference. For example, the landlord may require payment by a check or other traceable means.

Security Deposit: The lease must include any amount required as a security deposit in the lease. A security deposit is an amount a landlord can require in addition to rent at the start of a lease. A security deposit covers any damages that are not from normal wear and tear. The lease may also state that the deposit can be used for any rent not paid by the tenant.

Insurance: The lease may require the tenant to maintain renter’s insurance.

Default by Landlord: This section will explain how the landlord could be in breach of the lease. Typically, this section will be about the landlord’s failure to fix a problem on the property which affects the safety and health of the tenant. The lease often gives remedies that the tenant may proceed with if the landlord breaches the lease.

Default by Tenant: This section will explain how a tenant could be in breach of the lease. This includes failure to pay rent and follow any other lease provision. For example, if the tenant has a dog when the lease states explicitly no dogs are allowed, that is a breach. Just as in the Default by Landlord, there will be a section on the remedies a landlord may take against a tenant who breaches the lease. Examples of remedies include evictions and penalty fees.

Notice to Vacate: The lease may state an amount of time the landlord has to give in a Notice to Vacate if the tenant breaches the lease. The Notice to Vacate tells the tenant they have a certain number of days to move out. If the tenant does not move out by that time, the landlord can ask the court to evict the tenant. If the lease is silent, the law says that the Notice to Vacate must give the tenant at least three days to move out before filing an eviction case. Typically, a lease will allow less than three days for the Notice to Vacate.

Please be aware that a Lead-Based Paint Hazard Disclosure must be included with a lease in a residential home built before 1978.

You can view a sample lease form here.

Important: You have a right to have a lawyer review your lease prior to signing. This is highly recommended.

A lease is a contract between the landlord and the tenant. Neither the landlord nor the tenant may change the lease unless they agree. A landlord cannot force a tenant to sign an amendment to a lease.

Important: A landlord can change the lease terms if it has converted to a month-to-month tenancy. This includes the amount of rent to be paid. However, the landlord must give 30 days' notice before any changes can take effect.

The Texas State Law Library has more information about leases here.

Also available in American Sign Language and Spanish.