A lease is a contract that allows a tenant to occupy a landlord’s real property, such as an apartment, house, or office space, for a defined period in exchange for rent payments. In most states, leases over a year must be in writing to be enforceable. However, even short-term or month-to-month leases are better put in writing to clearly outline the agreement terms for both parties. There are some exceptions where an oral agreement may be binding, but a written lease protects both the landlord and tenant.
When is a written lease required by law?
Most states have adopted the Statute of Frauds, which requires certain contracts to be in writing to be legally valid and enforceable. Under the Statute of Frauds, any lease agreement for a term of more than one year must be in writing and signed by the party against whom enforcement is sought. This usually requires the lease to be signed by both the landlord and the tenant.
If a lease exceeding one year is not put into a written document with signatures, it will generally be unenforceable. A tenant could potentially occupy the property for up to a year and the landlord would not be able to take legal action to collect rent or evict the tenant. Conversely, the landlord might change the terms or try to kick out the tenant prematurely, leaving the tenant with little legal recourse.
Therefore, a written lease formally documenting the mutually-agreed upon terms is essential for both landlords and tenants when the lease term will exceed a year. This provides legal protections to both parties if either side breaches the lease down the road.
What about short-term or month-to-month leases?
Leases that are for one year or less are not subject to the Statute of Frauds, so they do not need to be in writing necessarily. This includes common month-to-month rental agreements. However, putting short-term leases in writing is still strongly recommended even when not required by law.
Here are some key reasons why a written lease is beneficial even for short-term rental situations:
- Outlines agreed-upon terms clearly to avoid misunderstandings
- Allows both parties to carefully review before signing
- Provides documentation if disputes arise later
- Defines procedures for termination/renewal
- Ensures tenant understands all fees, deposits, etc.
- Protects tenant from landlord raising rent unexpectedly
- May prevent landlord from ending lease abruptly if no cause
- May enable tenant to sublet if allowed in lease
While the Statute of Frauds does not apply to short-term leases, local landlord-tenant laws may impose additional requirements. Tenants should research state and city laws to understand all regulations landlords must follow when creating leases, even oral agreements.
When can an oral agreement be legally binding?
Although the Statute of Frauds requires long-term leases to be written, there are some situations where an oral agreement for over a year may still be legally valid:
– If the tenant has already moved into the property and started paying rent, their occupancy and payments could validate an oral lease.
– If the landlord makes oral promises to the tenant, the doctrine of promissory estoppel may bind the landlord if the tenant substantially relied on those promises when deciding to rent.
– The parties may be able to enforce undisclosed provisions that modify the lease, even if the original long-term lease is in writing. For example, the landlord promises certain repairs and the tenant pays a lower rent.
However, relying on an oral lease even in these situations can be risky. The specific facts and conduct between the parties would determine whether the oral agreement might be enforceable. The absence of a written document makes evidence murky if a dispute arises. In general, tenants should get any long-term agreements into a formal written lease.
Key lease terms to include in writing
All leases, whether required to be in writing or not, should document certain provisions. Here are key clauses to cover:
Rental rate and due date
The amount of monthly or yearly rent payable and the date it is due each period. Late fees can also be specified.
Security deposit and fees
The amount of any refundable security deposit and any nonrefundable fees, such as pet rent or application fees. Outline procedures for return of deposit.
Lease term
Specify the fixed rental term (6 months, 1 year, etc). Also state procedures for renewal, termination, or conversion to month-to-month.
Occupants
Name any tenants, family members, and other occupants who can reside in the unit. Provisions for guests and subletting can also be included.
Use of property
State permitted uses and prohibited uses, such as operating a business. Also address rules for pets, noise, smoking, and other tenant responsibilities.
Landlord’s rights
Outline landlord’s rights to enter the property and perform repairs and maintenance. Provide proper notice requirements.
Repairs and maintenance
Specify division of responsibilities between landlord and tenant for repairs, maintenance, and property condition at end of lease.
Insurance obligations
State requirements for maintaining renter’s insurance and any insurance obligations of the landlord.
Governing law
Indicate which state laws govern the lease agreement. Required disclosures under state or city landlord-tenant laws can also be attached.
Steps for creating a valid written lease
If you are planning to create a written lease as a landlord or tenant, follow these key steps:
- Research your state and local landlord-tenant laws – Comply with all requirements for what must be included in a valid lease.
- Use a lease template or rental agreement form – Modify to fit your specific situation but templates have standard language.
- Identify the parties – Name the landlord entity and tenants entering into the agreement.
- Define the premises – Provide full description of the rental unit/property being leased.
- Establish the rental terms – Specify exact length of lease period and amount of rent due.
- Outline permitted uses – State allowed uses and prohibited activities.
- Detail responsibilities – Identify who handles repairs, maintenance, utilities, insurance, etc.
- Check for required disclosures – Attach any state or local disclosures.
- Add optional clauses – Customize with any additional terms both parties agree to.
- Include signature and date lines – Leave space to sign and date the lease document.
- Make copies – Provide signed copies to both landlord and all tenants.
Carefully reviewing and completing each section of the lease ensures you avoid oversights and document the full agreement. Before signing, both parties should read the document thoroughly and resolve any questions.
Common disputes that arise without written lease
Many landlord and tenant disputes arise from the absence of a complete written agreement documenting the lease terms, obligations, and procedures. Some examples of issues that often come up include:
- Amount or due date of monthly rent payments
- Who is responsible for repairs and ongoing maintenance?
- When and how security deposit will be returned to tenant
- If tenant can assign lease or sublet to another renter
- Terms of lease renewal after initial rental term expires
- How much notice is required prior to terminating or moving out
- If landlord can modify rules during the lease term
- When and for what reasons landlord can enter the rental property
- Clauses illegally violating local landlord-tenant laws
- Ambiguity about what spaces or amenities tenant can access
Without a written record, it becomes a matter of he-said/she-said if the parties remember things differently. The absence of documentation makes it difficult to prove claims. Putting the lease agreement into a full written contract protects both landlord and tenants by setting clear expectations.
Options for enforcing a lease that is not in writing
If a landlord or tenant finds themselves in a dispute but a written lease was never executed, it can be challenging to enforce the agreement. Here are some options that may be available:
- Point to supporting documentation – Provide copies of texts, emails, tenant handbook, ads with rental terms, cashed rent checks, repair requests/receipts, etc. Any documentation of agreed-upon lease provisions and conduct between the parties.
- Recover based on promissory estoppel – Argue that you reasonably relied on promises made by the other party to your detriment, preventing you from finding other housing (for tenant) or alternative tenant (for landlord).
- File for an injunction – Seek a court order requiring the other party to comply with the alleged oral agreement until dispute is resolved.
- Sue for rent owed – Landlord can bring small claims action for unpaid rent documenting tenant’s occupancy and amount owed based on oral agreement.
- Argue partial performance – If tenant paid rent/deposits and landlord allowed occupancy, these actions help demonstrate an oral contract existed.
- Vacate the property – Where laws favor the tenant, they may be able to vacate after proper notice is given since the landlord cannot enforce the lease.
However, the lack of a written contract severely undermines the parties’ positions and claims. It is very difficult to overcome the presumption that an oral long-term lease is not legally enforceable. Getting a rental agreement in writing is always the best practice.
Final considerations
Here are some final tips regarding putting leases into writing:
- Even if not required, short-term leases should be put in writing to document terms and prevent disputes.
- Include all agreed-upon terms – Don’t rely on verbal discussions not documented in contract.
- Both landlord and all tenants should receive signed copies.
- Consult an attorney if questions about the enforceability of any lease provisions.
- Comply with federal, state, and local laws governing rental agreements.
- Avoid illegal provisions that conflict with landlord-tenant statutes.
- Consider attaching house rules, pet policies and other documents as addendums.
- Modifications should be put in writing and signed after lease is executed.
Properly documenting the full lease agreement upfront is crucial. For rental terms exceeding a year, a written lease is not merely recommended – it is legally required in most states. Get all aspects of the landlord-tenant arrangement in writing so that both parties can clearly understand their rights and obligations.
Conclusion
While short-term leases do not have to be in writing, putting all leases into a formal contract is the safest approach under the law. For leases longer than a year, state statute of frauds laws mandate a written document to create an enforceable agreement. However, even when not strictly required, a complete lease agreement clarifies the rental terms, obligations, and legal protections for both landlord and tenants. Having a written record prevents misunderstandings and provides critical evidence if disputes arise. To avoid potential litigation, leases over a year must generally be in writing, and all leases should be.