How to Make a Lease Agreement

Creating a lease agreement is one of the most important steps in renting out or leasing a property in the United States. A well-written agreement sets expectations, protects both parties, and helps avoid disputes down the line.

A lease agreement is a legal contract. It outlines the rights and responsibilities of landlords and tenants in clear, enforceable terms. Without one, misunderstandings around rent, duration, maintenance, or termination can quickly escalate into costly issues.

Using a lease agreement template can simplify the process significantly. Templates ensure that all essential information is included while allowing room for customization based on your property and state requirements. With modern tools like Blueink, lease agreements can also be created, signed, and stored digitally-saving time and reducing paperwork.

This guide explains how to make a lease agreement step by step, how lease agreements differ from rental agreements, what clauses are essential, and how to customize a template to meet your needs.

What Is a Lease Agreement and Why Is It Important?

A lease agreement is a legally binding contract between a landlord and a tenant that defines the terms under which a property is rented. It typically covers a fixed time period and specifies payment obligations, property rules, and legal protections.

Lease agreements are important because they:

• Clearly define expectations for both parties
• Provide legal protection if disputes arise
• Establish enforceable rules for property use
• Document financial and maintenance responsibilities

A typical lease agreement includes:

• Names of the landlord and tenant
• Property address and description
• Lease duration and renewal terms
• Rent amount and payment schedule
• Rules, responsibilities, and restrictions

Without a written lease, disagreements about rent increases, maintenance duties, or termination terms can become difficult to resolve. A properly drafted lease agreement helps create a smoother, more predictable rental relationship.

Lease Agreement vs. Rental Agreement: Key Differences

The terms lease agreement and rental agreement are often used interchangeably, but they are not the same.

A lease agreement usually covers a fixed term, such as six months or one year. During this period, the terms generally cannot be changed unless both parties agree. A rental agreement is typically month-to-month and renews automatically unless terminated by either party.

Key differences include:

• Lease term: Fixed duration vs. month-to-month
• Flexibility: Leases are more stable; rental agreements offer more flexibility
• Renewal: Rental agreements renew automatically, while leases often require renewal or renegotiation

Understanding these differences helps landlords and tenants choose the right type of agreement for their situation.

Essential Components of a Lease Agreement

A strong lease agreement includes several core components that protect both parties and reduce ambiguity.

1. Parties Involved

The lease must clearly identify the landlord and tenant by full legal name. This ensures accountability and enforceability.

2. Property Description

The agreement should accurately describe the rental property, including the full address and unit number if applicable.

3. Lease Term

State whether the lease is fixed-term or month-to-month, including start and end dates.

4. Rent Details

Include the rent amount, due date, accepted payment methods, and any late payment penalties.

5. Security Deposit and Fees

Specify the deposit amount, conditions for return, and any additional fees allowed by law.

6. Maintenance and Responsibilities

Outline who is responsible for repairs, maintenance, utilities, and property upkeep.

7. Rules and Restrictions

Define rules around pets, smoking, subleasing, alterations, and property use.

8. Termination and Renewal Clauses

Explain how the lease may be terminated, renewed, or extended.

9. Legal Disclosures

Include any state- or federally-required disclosures, such as lead-based paint notices or habitability disclosures.

Including these elements ensures clarity and reduces the likelihood of disputes.

Step-by-Step Guide: How to Make a Lease Agreement Using a Template

Using a lease agreement template is one of the easiest ways to create a legally sound rental contract. Follow these steps to ensure accuracy and compliance.

Step 1: Choose a Reliable Lease Agreement Template

Start with a template designed for U.S. properties. A quality lease agreement template includes standard clauses while allowing customization for state-specific requirements.

Step 2: Identify the Parties Involved

Enter the full legal names of the landlord and tenant. Double-check spelling and accuracy to avoid enforceability issues.

Step 3: Describe the Rental Property

Include the full address, unit number, and any shared spaces or amenities covered by the lease.

Step 4: Set the Lease Term and Renewal Options

Clearly define the lease duration and any renewal conditions. Specify whether renewal is automatic or requires a new agreement.

Step 5: Specify Rent Payment Details

List:

• Monthly rent amount
• Due date
• Accepted payment methods
• Late fees or grace periods

Digital tools like Blueink allow landlords to include online payment workflows and digital records for rent-related documents.

Step 6: Outline Security Deposits and Fees

State the deposit amount, storage method, and return timeline, in accordance with state law.

Step 7: Define Rules, Responsibilities, and Restrictions

Detail maintenance responsibilities, occupancy limits, pet policies, and property rules.

Step 8: Add Legal Clauses and Disclosures

Include termination conditions, dispute resolution terms, and required disclosures. A legal review is recommended to confirm compliance.

Step 9: Finalize, Sign, and Store the Lease Agreement

Once completed, both parties should sign the lease. Using Blueink, leases can be signed electronically, ensuring fast execution and secure digital storage.

Customizing a Lease Agreement Template for Your Needs

While templates provide structure, customization ensures your lease fits your property and location.

When customizing, consider:

• State and local landlord-tenant laws
• Property-specific rules or amenities
• Maintenance responsibilities unique to the unit

A customized lease agreement improves clarity and reduces risk. After customization, review the document carefully or consult a legal professional before finalizing.

Common Mistakes to Avoid When Creating a Lease Agreement

Even with templates, mistakes can occur. Avoid these common issues:

• Omitting essential clauses
• Using vague or ambiguous language
• Failing to include required legal disclosures
• Ignoring state-specific regulations

Every clause should be clear, specific, and legally compliant. Reviewing the lease before signing protects both parties.

Protecting Your Rental with a Solid Lease Agreement

A well-crafted lease agreement protects landlords and tenants by clearly defining expectations, responsibilities, and legal rights. Using a lease agreement template simplifies the process while ensuring essential terms are included.

By customizing your agreement and using secure digital tools like Blueink for signing and storage, you can streamline leasing workflows and reduce administrative risk. Taking the time to create a thorough, compliant lease agreement helps ensure a smooth rental experience for everyone involved.

Ready to simplify your lease agreements? Schedule a demo with Blueink to create, sign, and store rental contracts securely online.

Frequently Asked Questions About Lease Agreements

1. What is the difference between a rental contract and a lease agreement?

A rental contract is often short-term or month-to-month, while a lease agreement typically covers a fixed term.

2. Can a lease agreement be changed after signing?

Yes, but changes must be agreed to by both parties and documented in writing.

3. Is a security deposit required?

Not always, but most lease agreements include one. Rules vary by state.

4. Are electronic lease agreements legally valid?

Yes. Electronic signatures are legally recognized in the United States, making digital lease agreements enforceable when executed correctly.