Lease Worksheet
Download REI Grove's lease worksheet to organize tenant details, landlord details, rent policies, property rules, utilities, security deposit terms, and other lease components before drafting a formal lease agreement.
Key Takeaways
- A lease worksheet helps landlords organize rental rules, policies, and procedures before drafting a formal lease agreement.
- Landlords should confirm that lease terms comply with federal, state, and local laws before using them in a signed agreement.
- REI Grove's worksheet is organized around tenant details, landlord details, lease basics, rent, property rules, utilities, notices, and other important lease terms.
- By completing this worksheet before writing a lease, landlords can organize important policies before drafting a lease or speaking with a real estate attorney.
Preparing to Write a Lease
Before you write and enter a formal lease agreement with an incoming tenant, it's important to make firm decisions about the policies you will establish for your tenancies and rental property. These policies form the basis of every lease agreement. If you are a property owner getting started with your rental business, this article and REI Grove's lease worksheet will help you determine the kind of parameters and decisions you should implement before drafting your lease agreement.
The Benefits of a Lease Agreement
Before you undergo the very important task of laying the groundwork for and deciding what to include in a lease agreement, let's talk about why creating one is beneficial both for you and your tenants.
Cover All of Your Bases
Much of the content of a lease agreement concerns the foundational operations of your residential property. Finalizing some of the essential elements in our lease worksheet will help you ensure you've thought of everything. These elements include policies like the distribution of utility costs, your late rent procedures, monthly rent charges, and many others. Understanding these lease terms is crucial to ensure clarity in the lease agreement, whether you own a residential or commercial property.
Rental businesses cultivate very worthwhile investments, and this worksheet is one way to ensure that you've done the necessary preparatory work to make the most of those investments. If you haven't established the basics, you are likely to encounter problems or disputes down the line that will interrupt the smooth sailing of your property management.
Attract the Right Tenants
Deciding what will go into a lease agreement is also a way to filter through tenants that may refuse to meet your terms. Being clear and explicit about your parameters and how your business will operate in your rental agreements makes certain that tenants who would infringe upon them are less likely to want to sign on in the first place.
For instance, if you don't want pets living in your rental properties, you have the power to make this decision and outline it in the lease agreement. Likewise, if you don't want month-to-month tenants, you should state that up front and avoid tenants looking for those arrangements. In a way, you have a chance to conduct a certain level of tenant screening by making sure that anyone who signs your lease agreement is prepared to follow the terms that you've decided on. Tenants who align with your goals and meet your expectations regarding your rental properties are a huge factor in the perpetual success of your rental business.
Protect Yourself Legally
As we previously mentioned, preparatory work determines how effectively your business avoids problems down the line, including legal ones. Having a formal lease agreement means that the rights and responsibilities of both landlord and tenant are not only clearly defined but also backed with legal protection.
When you have a valid lease agreement reflecting your desired terms that is signed by both parties, you have the leverage to bring explicit violations forward against a tenant through the appropriate legal systems. If a tenant violates the lease agreement, the first step towards legal actions like eviction or small claims is producing the legally binding agreement that establishes the validity of that violation. And before you can write that legally binding agreement (or have an attorney prepare one for you), you'll need an understanding of the details and policies you want to include in it.
Important Disclaimers
It is important to note that certain parameters that may seem as though they are under your discretion, such as how many days you might allow for a grace period, are partially determined by law in certain states. Some state laws require a minimum grace period, while others do not. The same can be said for whether certain states may enforce rent control or different disclosures on lease agreements. It is of the utmost importance to stay up to date with federal, state, and even local laws and their potential implications for your lease agreements.
In that same vein, it is important to keep in mind that both laws and markets can change over time. Once you have done the preparation necessary to write a thorough lease agreement, your work of keeping track of laws and markets should not be over. You should maintain both the awareness and the willingness to update your lease agreement templates accordingly. While preparation can ensure that your tenancies start off on the right foot, vigilance and intention keep it lucrative and successful over a much longer period of time.
What Does the Lease Worksheet Cover?
REI Grove's lease worksheet is organized into sections that guide landlords through the major policies, details, and decisions to consider before drafting a formal lease agreement.
This worksheet includes:
- Tenant and landlord contact information
- Lease term, dates, rent, and deposit information
- Property rules, parking, and guest policies
- Insurance, pets, notices, and legal clauses
- And more!
Section 1: Tenant Details
The worksheet begins with tenant details so landlords can record who will be entering the lease agreement and how to contact them.
Section 2: Landlord Details
The landlord details section gives property owners space to record the landlord or owner information that may need to appear in the lease.
Section 3: Lease Basics
The lease basics section covers the foundational terms of the rental agreement. These terms establish where the lease applies, how long it lasts, and what major financial terms apply.
This section includes:
- Property address and unit number
- Lease term
- Lease start date
- Lease end date
- And other relevant lease basics!
Section 4: Rent
The rent section helps landlords decide how rent will be paid, what fees may apply, and how payment issues will be handled.
This section includes:
- Late fee policy and amount
- Grace period
- Accepted payment types
- ACH transfer
Section 5: Property
The property section helps landlords define rules and expectations tied to the rental property itself.
This section includes:
- Property condition
- Parking policy
- Guest policy
Section 6: Utilities
The utilities section helps landlords divide responsibility for utility payments and services between landlord and tenant.
This section includes:
- Utilities the tenant is responsible for
- Utilities the landlord is responsible for
Section 7: Termination
The termination section helps landlords outline notice periods related to ending the lease or responding to lease problems. Some notice periods may depend on state or local law.
This section includes:
- Number of days' advance notice required to terminate the lease
- Number of days' notice to quit for nonpayment of rent
- Number of days' notice to quit for violation of lease agreement
- Number of days' notice to quit for illegal activity
Section 8: Security Deposit
The security deposit section helps landlords organize how the deposit will be handled, used, and returned. These rules may vary by state and local law.
This section includes:
- Whether state law requires interest to be paid on the security deposit
- Where the security deposit will be held
- Whether the tenant is required to reinstate the deposit if funds are used during the tenancy
- Number of days to provide the tenant with itemized deductions following termination
Section 9: Use of Premises
The use of premises section helps landlords define how the tenant may use the property and what restrictions apply during the tenancy.
This section includes:
- Definition of peaceful use and enjoyment of the premises
- Advanced notice requirement for landlord entry
- Whether subletting is allowed
Section 10: Maintenance and Repairs
The maintenance and repairs section helps landlords define who is responsible for upkeep, repairs, outdoor maintenance, and small property-related tasks.
This section includes:
- Tenant obligations
- Notice in case of damage or repairs needed
- Who is responsible for certain repairs
Section 11: Insurance
The insurance section helps landlords decide whether renter's insurance will be required.
This section includes:
- Whether renter's insurance is required
- Required coverage limits, if applicable
Section 12: Lead-Based Paint Disclosure
The lead-based paint disclosure section helps landlords determine whether this disclosure may be required.
Section 13: Severability, Joint, and Individual Obligations
This section helps landlords consider how responsibility under the lease applies when multiple tenants sign the agreement.
Section 14: Binding Effect and Governing Law
This section establishes the laws that govern the agreement.
Section 15: Notices
The notices section helps landlords define how official notices will be delivered to tenants.
Section 16: Pets
The pets section helps landlords define whether animals are allowed and what rules or fees apply.
This section includes:
- Whether pets are allowed
- Pet size, breed, or type restrictions
- Pet deposit amount
- Pet rent amount
Section 17: Abandonment of Property
The abandonment of property section helps landlords outline what happens if a tenant abandons the rental property.
Breakdown of Sections
| Section | Topic | What the Section Covers |
|---|---|---|
| 1 | Tenant Details | Tenant names, contact information, and identifying details. |
| 2 | Landlord Details | Landlord or property owner contact information and communication details. |
| 3 | Lease Basics | Property address, lease term, start and end dates, rent amount, and security deposit. |
| 4 | Rent | Payment schedules, accepted payment methods, late fees, grace periods, and NSF charges. |
| 5 | Property | Property condition, parking rules, guest policies, and occupancy expectations. |
| 6 | Utilities | Allocation of utility responsibilities between landlord and tenant. |
| 7 | Termination | Notice requirements for lease termination, nonpayment, violations, and illegal activity. |
| 8 | Security Deposit | Deposit handling, permitted deductions, interest requirements, and return procedures. |
| 9 | Use of Premises | Rules regarding occupancy, smoking, subletting, alterations, and landlord entry. |
| 10 | Maintenance & Repairs | Responsibilities for upkeep, repairs, landscaping, and reporting maintenance issues. |
| 11 | Insurance | Renter's insurance requirements and coverage expectations. |
| 12 | Lead-Based Paint Disclosure | Disclosure obligations for properties built before 1978. |
| 13 | Severability & Obligations | How lease obligations apply to multiple tenants and enforceability of lease provisions. |
| 14 | Binding Effect & Governing Law | Legal authority governing the lease and parties bound by its terms. |
| 15 | Notices | Approved methods for delivering legal and lease-related notices. |
| 16 | Pets | Pet permissions, restrictions, deposits, and recurring pet fees. |
| 17 | Abandonment of Property | Procedures for handling abandoned units and personal property left behind. |
Conclusion
Learning how to write a lease agreement is key to not only an effective relationship with your tenants but also for setting the standards that will define the type of rental business you want to run. Take advantage of this resource to ensure that you have everything in order for your residential lease agreement and are ready to start your journey as a successful landlord.
FAQs
What is a lease worksheet?
A lease worksheet is a planning tool landlords can use to organize rental rules, policies, and procedures before drafting a formal lease agreement.
What does the lease worksheet include?
The worksheet includes sections for tenant details, landlord details, lease basics, rent, property rules, utilities, termination, security deposit, use of premises, maintenance and repairs, insurance, pets, notices, and other lease components.
Why should landlords complete a lease worksheet before writing a lease?
Landlords should complete a lease worksheet before writing a lease because it helps clarify important policies before presenting terms to an attorney or drafting a formal lease agreement.
What rent details should landlords decide before drafting a lease?
Landlords should decide the monthly rent, late fee policy, grace period, accepted payment methods, pro-rated rent policy, and NSF charge.
What property rules should landlords include in a lease worksheet?
Landlords may want to define property condition, parking policy, guest policy, smoking policy, subletting rules, alteration rules, and permitted use of the premises.
What utility details should landlords clarify?
Landlords should clarify which utilities the tenant and landlord are responsible for, respectively.
What security deposit terms should landlords consider?
Landlords should consider where the deposit will be held, how it may be used, whether interest must be paid, whether tenants must reinstate used funds, and how quickly itemized deductions must be provided after termination.
What maintenance responsibilities should be included?
A lease worksheet may include tenant maintenance obligations, repair reporting procedures, landscaping responsibilities, outdoor maintenance, smoke detector battery replacement, painting, and signage policies.
Why do lease laws matter?
Lease laws matter because rules about grace periods, security deposits, disclosures, notices, rent control, and other lease terms may vary by federal, state, and local law.
Should landlords seek legal counsel before finalizing a lease?
Yes. Landlords should seek legal counsel if they are unsure which laws apply or whether their lease terms comply with federal, state, and local requirements.