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Creating a lease or rental agreement isn't as simple as downloading a form. Before you start, here's 7 important clauses and disclosures you'll want to include.

7 Important Clauses to Include in Your Lease or Rental Agreement

There’s no shortage of free online templates to create a simple lease agreement. And we get the temptation this gives to homeowners managing their own rental. Few people love reading lengthy contracts let alone creating them. If they’re all pretty standard, why not? 

But before you go down that road, remember this: a lease is a binding legal document designed to protect you and your rental home. Will a boilerplate take enough into account? Overlooking vital details could come back to bite you down the road. It’s always recommended that you speak to a local attorney before signing on any dotted lines. 

Whether you’re planning to outsource the 'legalese' or hit download on a template, here's 7 important clauses and disclosures that should be in your lease or rental agreement.

Only the people named on your lease agreement are legally responsible for paying the rent and following the terms. This is why all adult members of the household need to be listed. Partners, roommates — get it in writing. Include an occupancy clause that states that only the named tenants and their children can occupy the home. A clause should also prohibit subletting and unapproved occupants to further protect your home from unauthorized use, particularly on short-term rental platforms that may violate the terms of your landlord's insurance policy. 

2. Payment terms for rent and security deposit

Your lease should obviously list the agreed rental price and security deposit amount. But you can avoid messy disputes by detailing the specific payment terms. Your lease agreement should include details such as:

When rent is due and the frequency of payments

What will happen if the rent is late (including details of fees if they apply in your state)

What will happen if a check bounces or payment declines

The amount of security deposit due and where it will be held

Whether interest will apply on the security deposit, based on local laws

The terms in which the security deposit will be returned 

Every state and jurisdiction is different, which is why it’s important to seek professional help for legislation around rent and security deposits. For example, in California a security deposit can’t exceed two months rent, but it’s limited to one month if the tenant is an active service member. In Texas, there is no limit applied. In Washington state, you must allow tenants to pay the deposit in installments if the amount is more than 25% of the monthly rent. There isn’t a one-size-fits-all approach to drafting a lease for renting in the US. 

3. Policies around proper use of the home

How you want the rental home and surrounds used should be clear to tenants before they move in, avoiding headaches down the road.  

For example, if you have parking for one car, spell that out. Don’t assume that your residents won’t use the lawn to park their partner’s car or store an RV if you haven’t told them they can’t. A boilerplate won’t have any specifics relating to your home, so these details will need to be considered carefully.

When Belong drafts a lease agreement, we make sure to include specific policies and permissions including:

The responsibilities of the resident for maintenance and reporting faults, including what they need to replace themselves, such as light bulbs

Authorized and/or prohibited parking on the property

Storage notice for personal use only, not storage for other people or hazardous materials 

An outline of who is responsible for paying for utilities and services to the home

Legal use of smoke detectors and carbon monoxide, plus reporting and maintenance requirements

Garden maintenance and watering requirements as applicable to the home

A no smoking policy, prohibiting smoking and vaping in the home and common areas

A drug policy, prohibiting the use, growing and distribution of drugs, marijuana or related products on, in or about the home

A policy for requesting any alterations around the home, including painting

Local conditions in the neighborhood, such as city noise restrictions

Early termination penalties if the resident wants to move out before the end of the lease

A pest control policy including the residents' responsibility to keep the home in a clean and sanitary condition (with pest control costs applicable for failing to do so)

Resident obligations upon moving out including key return, removal of personal items, cleaning and providing a forwarding address

Learn More: Discover Belong, the best alternative to Property Management in Seattle, Redmond, Oakland, and many more cities across California, Florida, Texas, Utah, North Carolina and Washington State.

4. Statutory disclosures for your local area

Depending on where your home is located, there could be a number of legal disclosures you are required to include in a lease agreement. For example, if your home is in the state of California, you are legally required to include:

A ‘Megan’s Law’ database disclosure statement

Disclosure of any known mold or ventilation issues in the home and agreement to keep the home free of mold and mildew

A lead paint warning statement and disclosure of any known lead-based paint or hazards in the house (for homes built prior to 1978)

Any known contamination from methamphetamine of fentanyl 

Information about bed bugs and reporting requirements

Information about flood hazards if applicable to the home

How to comply with smoke and carbon monoxide detector requirements

Any rent caps or rent control regulations applicable to the local city

Research your local municipality and state landlord-tenant laws if you decide to manage a lease on your own. 

Discover Belong: Skip the research and let Belong take care of everything. See why thousands of US homeowners are ditching outdated Property Management in San Francisco, San Diego, Los Angeles, Tampa, Jacksonville, Concord, Berkeley, Orlando and more.

Even if you have insurance for your rental home, it won’t cover the residents or their personal belongings while they rent. Your lease agreement should make it clear that residents are responsible for their own insurance to protect against loss in and around the home. 

If your home is loved by Belong, we require all residents to carry their own renter’s insurance with liability coverage to protect them and our homeowners. Our lease agreements stipulate proof of this policy before commencement of the agreement and prior to any renewals. 

If you decide to make your rental home pet-friendly, you’ll need a pet policy or addendum in your lease agreement. Like the residents themselves, this policy should specify the approved pet only. If other unauthorized animals are kept in the home this would be considered a lease violation. 

Creating a dedicated pet policy and/or clause in your lease will protect you in the future if you need to claim against the security deposit to cover damages. Your pet policy or clause should include:

The listed approved pet/s including the type and breed

Whether an additional security deposit is required and how much

What damages can be claimed under the security deposit

The resident’s responsibilities for keeping the pet under control and cared for, avoiding damage and nuisance to your home and neighboring properties 

Financial Security Made Simple

What is normal wear and tear on a rental house vs. tenant damage? Find out how to assess for and protect your rental home from costly damages in between tenants

Normal Wear and Tear vs. Tenant Damage: How To Assess Your Rental Home

When a resident in your rental home vacates, you need to hone an essential skill: being able to decipher between regular wear and tear vs tenant damage. After a year or more, your house won’t be in the exact same condition as when you put it on the rental market. But what can come out of a security deposit and what do you need to pay for?

It’s time to play detective, only with less trench coats and more paint swatches.

What is normal wear and tear on a rental property?

Like a favorite pair of shoes, some things deteriorate with regular use. Your home is no different. Wear and tear describes what you would expect from regular use of a home. It doesn’t mean your residents didn’t show enough care, but there’s a reason why the term “lived in” is often used to describe something that is showing its age. 

Here are some examples of where to play Sherlock Holmes to consider what could be wear and tear vs damage:

Faded paint, minor nicks, and a few scuffs or scratches are all part of normal wear and tear. Then again, perhaps your resident went a bit overboard sticking things to the walls and have left tears in the paint. Or remnants of a mini picasso can be seen from a two year old’s efforts with the crayons. 

Wear and tear vs. tenant damage: Consider the property’s age and what is reasonable to expect from how long your residents have been in place. If there’s a few extra marks than before, this would be normal. If there’s holes or large tears in the paint — or a piece of furniture has visibly scraped off some drywall, you should ask to have it repaired or deduct the costs from the security deposit. 

Unauthorized paint and wallpaper is another contentious issue. Be sure to let your residents know that they need to seek permission before making alterations to the walls. Otherwise you can reasonably ask for them to be restored to their original condition, minus some standard wear and tear. 

Over time carpets lose their plushness, develop some snags, and bear the evidence of many accidental spills. Part of turning over a rental home involves having the carpets professionally cleaned, so waiting until this has been completed will show a true picture of whether carpet changes are due to general foot traffic or something else. Excessive stains or a suspiciously iron-shaped burn mark could indicate accidental damage.

You can’t charge a resident for foot traffic and reasonable wear of carpet or flooring. If you find evidence of serious stains such as oil, paint or pet urine that would require additional costs from a professional carpet cleaner to remove, you can definitely ask for residents to cover this cost or withhold this cost from a security deposit. 

For wooden flooring, again scuff marks would be seen as acceptable as would any warping or changing from climate conditions. But if a pet dog has been digging for bones in your living room this would be considered damage.  

The windows and frames are another thing that should be checked over. You can’t rent out your home again with broken windows, so repairs will need to be made quickly. If it appears that a window has cracked due to settling foundations, you can’t hold a resident responsible for damage. Rotted frames are another homeowner responsibility. 

Wear and tear vs. tenant damage: The occasional scratch, crack, or foggy seal is to be expected. Shattered glass from a friendly game of baseball is a definite sign of tenant damage. A pet cat using the patio door or window screens as a scratching post is another sign of damage that residents would be responsible for. 

Bathrooms can be a tricky one. It is your responsibility as the homeowner to ensure that essential facilities like plumbing, toilets and water heaters are well maintained and functioning. It should also be kept free of mold where possible. That means ensuring leaks don’t go unchecked and that any damage or aging pipes are repaired without delay. 

Wear and tear vs. tenant damage: Leaky faucets, a running toilet, or a clogged sink? Normal wear and tear. But an overflowing toilet from playing “will it flush?” — that’s deliberate misuse and you can charge for the plumber call out fee. 

The grout in tiles will also deteriorate over time and is considered wear and tear. But broken/smashed/missing tiles from excessive force is damage.  

How to track wear and tear vs. damage in a rental home

There are two key ways to really determine wear and tear vs. damage in a rental home:

Take photos before and after each new resident moves in

Take notes and extra photos during routine inspections

Routine inspections of your rental home aren’t about being ‘Big Brother’ and intruding on your residents. They’re essential to protecting your investment, by keeping tabs on any wear and tear on the property. It’s also an opportunity to connect with your residents to make sure they’re happy and are sticking to the conditions of the lease agreement. 

During rental inspections, you (or a representative such as Belong or a property manager), should be looking for damage, but also for wear-and-tear on the property that has the potential to become an issue if left unattended. 

Ask residents if they have noticed anything different, take written notes and also photos. When the home is vacant, these notes and photos will make it easier to spot the extent of wear and tear and whether or not anything could be seen as damage. Some counties also require you to have written evidence and invoices in order to claim any amount from the security deposit, even if you do the cleaning or repairs yourself. 

If your home is on Belong’s residential network, we schedule home visits on your behalf to connect with the residents, assess if anything needs fixing, and ensure there are no lease violations occurring. Inspection reports and information can be delivered directly to your smartphone via the Belong app. 

If we identify any maintenance issues or damage, we can provide you with a quote from one of 10,000+ vetted partners in our vendor network to take care of the job and even let you split the costs of any unexpected repairs in easy installments over the term of the lease. 

Does homeowners insurance cover accidental damage in a rental home?

Short answer: no. Many homeowners are surprised to discover that their homeowners insurance policy doesn’t actually cover them for anything once it's tenant-occupied! 

To be covered for damage while a resident that is renting your home, you need dedicated landlords insurance. All landlord policies vary, so you will need to speak to a provider regarding exactly what they cover. 

When you join the Belong network as a homeowner, you’ll be required to have a landlords insurance policy, either through our network or a provider of your choice. This ensures you are protected as a homeowner, covering the cost to repair or replace damaged property, especially if your resident was not at fault. 

Learn more about the difference between homeowners vs landlords insurance here.

Ready to let someone else take on the load of managing your rental home?

Simple protection of your asset (and ensuring you don’t have to play detective over scuffed wall paint!) is just one of the many ways Belong is making it easier than ever for individuals to achieve financial freedom with a rental home. 

Visit our homeowner's page to find out more about how our services are helping people to ditch property management in Seattle, San Francisco, San Diego, Los Angeles, Tampa, Orlando, Jacksonville, Miami and many more.

Legal mistakes are common for new landlords renting their homes. Avoid the headaches by getting ahead of 11 common legal mistakes and learn how to avoid them.

11 Legal Mistakes To Avoid As a Rental Homeowner

Renting out your home long-term is a great way to earn income, but it’s not your average business transaction. Governed by a host of varied and ever-changing laws, new landlords could find that simple missteps could land them in hot water. 

Whether you’re a self-managing landlord or have professional support, it’s a good idea to get ahead of these common legal mistakes so you can avoid them.  

11 Legal Mistakes New Landlords Make (and How to Avoid Them) 

Legal Mistake #1: Using outdated lease agreement templates

The temptation to cut costs and download a free lease agreement template online is understandable… but not always legal. This is because templates often take a ‘one size fits all approach’ and tenant-landlord laws don’t. 

Local ordinances are set by counties and change often. Legislation overrides any clauses in your lease agreement, which could leave you exposed if you’ve used a template that isn’t valid. This is also true if you try to sneak in a clause asking a tenant to accept terms that aren’t permissible in your county. 

Have your lease agreement drawn up by a professional who is up to date with both state legislation and any local ordinances, such as:

A modern property management alternative like Belong

Legal Mistake #2: Discriminatory rental marketing

If you’re writing a rental listing or asking to promote your home a certain way, beware that you could violate Fair Housing Laws. This is because the wording used when marketing a rental, running a home tour, or selecting an applicant could be discriminatory. 

For example, if you promote a rental as in a “good Christian neighborhood”, this would be discrimination on the grounds that it seeks to attract tenants of a particular faith (or exclude others).

When marketing your rental home, don’t focus on trying to attract your ideal resident. Stick to the hard facts that don’t favor any applicant over another such as:

Walkability to local cafes, shops and restaurants

If you’re looking for assurances in securing good residents and reliable income, sign up to Belong. It costs nothing to join, there’s no lock-in contracts and if you choose us to look after your home, we’ll do all the legwork to find the best residents – and even guarantee your rent. 

Read More: Understanding Fair Housing Laws When Renting Out Your Home

Legal Mistake #3: Discriminatory tenant selection

Tenant screening is another area where Fair Housing violations can occur. For example, using different income standards or higher application fees for a person based on their ethnicity, family size or race is discriminatory. 

If a rental applicant believes you have discriminated against them, you could face a lawsuit or hefty fines. As of 2024, a first offense faces fines of up to $25,597. This can climb as high as $127,983 for repeat violations.The court may also issue an injunction to prevent future violations. 

If you hire professional services, they should make tenant screening and compliance simple. If you are managing your own screening, it’s crucial that you document a standard check and apply it equally to everyone that applies. This creates a fair process and could support your case if you are ever accused of discrimination. 

Legal Mistake #4: Not documenting the home before move-in

Before your new residents move in, did you document every corner of the house? It’s a common mistake for new landlords to either forget to do this or not take enough specific details and photos in every room. This is risky because it leaves you open to disputes around damage and security deposits when a tenant moves out. 

Conduct a thorough inspection of your home or outsource it to someone like Belong or Inspectify. Take photos and detail the condition of every room, including rooms with no damage. Even the ceilings and inside wardrobes. Highlight any marks so you know what is pre-existing when it comes time to inspect the home on move-out. Remember that you are never permitted to keep a security deposit for “wear and tear” on the rental home or any breakages that happen as a result of ordinary use (e.g. carpet staining due to foot traffic).

Read More: Normal Wear and Tear vs. Tenant Damage: How To Assess Your Rental Home

Legal Mistake #5: Unlawful security deposit claims

Security deposit laws are changing in many counties. In some jurisdictions, the quality of your pre-lease inspection (as mentioned above) could also impact your claim on any security deposit. 

For example, new laws in Washington state won’t allow you to take a security deposit until you supply the new tenant with a written checklist that outlines the cleanliness of the rental home and any existing damage. This checklist will need to include descriptions of the condition and cleanliness of things like the walls, flooring, appliances and any other fixtures or furnishings. 

Both you and the tenant need to sign and date the checklist and you must provide them with a copy. If you don’t, the tenant could take legal action, including suing for the deposit amount plus costs. 

Find out what your local rules are on security deposits including caps on amounts and the claims process. Regardless of the law, it’s wise to document the condition of your home and any work done throughout the lease term. 

If you need to claim any of the deposit, make sure you have evidence of the costs to clean or repair any damage. Include quotes or invoices in a written statement, do not write “extra cleaning: $300” unless you have an invoice for this amount. If you intend to make repairs or clean yourself, document the time it took, along with a reasonable hourly rate in place of an invoice to use as evidence.



Read More: 5 New Laws Washington State Landlords Should Be Prepared For in 2024

Legal Mistake #6: Not taking steps to limit criminal activity 

Preventing crime is not your sole responsibility as a rental homeowner, but you do have a legal obligation to take “reasonable preventative measures” to keep the home secure. This means limiting opportunistic criminal activity where possible. 

Standard features that a secure home would be expected to have to prevent unauthorized access are reasonable. Think door deadbolts or changing the locks after evicting a nuisance/violent tenant.

Before renting your home, make sure the home is secure for new residents. And if a resident raises a safety concern, address it quickly and seriously. Failure to take action could be seen as negligent — such as not fixing a broken window, resulting in a home robbery.

Read More: Criminal Activities in Rentals: Can Landlords Be Held Responsible?

Legal Mistake #7: Not making timely repairs

A safe home is also up to code and livable. Ignoring or delaying tenant requests for repairs can lead to code violations, injuries, and even lawsuits. If you take too long, your residents may be able to legally withhold rent and arrange repairs themselves or move out without consequence. 

Get great residents, eviction support and guaranteed rent

Is it worth the cost of installing a security system for a rental property? See 4 benefits of home security for rentals and the dos and don’t for landlords.

The Dos and Don’ts of Home Security in a Rental Property

Home security is a wise investment when it comes to peace of mind for your own home, but what about a rental property? Is it worth the cost of installing a security system for a home you don’t live in? In this article, we explore the benefits of home security for rental homes and the dos and don’t for landlords considering their options.

4 benefits of adding home security to your rental home

1. Home security can protect your real estate investment

Systems that can deter theft or notify of an issue will help protect your asset both during and between lease agreements. It’s inevitable that your home will be empty from time to time — during pre-lease maintenance or renovations and when your home is on the rental market. Empty homes are a prime target for break ins and vandalism, so home security can help you keep watch.

When you do have tenants, the system will still be valuable in protecting your asset. Your residents don’t want anything stolen and you don’t want your property damaged — making security a win-win. 

2. You may be eligible for a discount on your insurance

A secure home reduces liability and most insurance companies reward this with a discount on premiums. Deadbolts, alarm systems and locking windows can all contribute to a reduction in your tenant’s premiums and may also reduce your own landlord’s insurance.

3. Home security could increase the rental value of your home

A secure home provides extra safety and peace of mind to potential residents and could attract a premium on your rental pricing. If you’re smart about your choices, this could cover the cost of installation and increase your return long term. Make sure monitoring services aren’t eating into your profits if tenants are not willing to foot the bill. 

4. Smart home monitoring could prevent serious issues or damage to your rental home

Smart home products can keep your home and residents safe by monitoring problems before they become emergencies, for example:

Smart smoke alarms that detect carbon monoxide levels can avoid toxic poisoning.

Water sensors that alert of leaks and flooding can avoid costly damage to homes.

Doorbells with video and/or motion sensors can notify of any unauthorized access to the property when it's vacant.

What to do when installing home security in a rental home

Buy reputable smart home products that residents can use

Smart home products that residents can enjoy themselves, such as a Ring or Nest video doorbell or smart smoke detector with carbon monoxide monitoring, offer the highest value to residents. These will make their life easier, while also offering some basic protection to your home. 

Make smart investments that increase your rental returns

Simple security upgrades such as deadbolts or smart locks, flood lights and window sensors can make a huge difference in peace of mind, without much outlay. Do your research before committing to anything too expensive and if you’re unsure if it will add value to your rental pricing, you can always ask the team at Belong. 

What not to do when installing home security in a rental home

Security cameras are a common feature of home security, capturing footage of any break ins and deterring intruders. But when installed in a rental home, you risk breaching the privacy of your residents. This is especially true for hidden cameras that aren’t easily visible. 

There is a legal requirement for tenants to have privacy and ‘quiet enjoyment’ of the home they rent, which means any camera that monitors the home could be considered a breach of your lease agreement or even tenant harassment. It goes without saying that you absolutely can’t have a camera in any private space such as a bedroom or bathroom, but even surveilling their coming-and-goings outside the home could be a breach of privacy without proper consent or with improper use of the footage. 

Don’t install any cameras without doing your research 

Generally, it’s perfectly legal for landlords to install a camera outside the home to monitor outdoor activity. However, it’s important to note that state legislation varies across the country regarding consent and hidden cameras. So if, for example, you decide to install one at the front door, do your homework first. You may need to switch it off during a tenancy or get their consent to have it there. 

Homeowners are increasingly being targeted by home security scams and fraud. Home home security scams include:

Door-to-door sales scams, conning you into a bad contract for things you didn’t want or making off with your money. 

Free equipment scams, where you are promised home security equipment for free, with huge long-term monitoring costs in the fine print or auto-renewal clauses.

Fake business scams, where fraudulent websites look to steal your details and/or money for home security systems.

Avoid being taken advantage of by sticking with reputable companies that you have researched, turning away salespeople at your door or cold-call phone calls, and not succumbing to high-pressure sales tactics. You should also read through any contract before signing.  

Don’t spend too much money on security monitoring services

While video surveillance and active monitoring may be the most secure way to protect a home, they can be expensive and may not get you the return on investment you’re looking for. 

For a rental home, avoid spending a huge amount of money on costly monitoring services or video surveillance that could violate privacy, such as inside the home. 

One of the best ways to ensure your home is safe and secure is to rent it out long-term to reliable, trustworthy people. People who will take care of your home like it's their own and stay longer, reducing vacancies and damage. 

Belong gives this peace of mind to homeowners by finding the best residents (with 66% less vacancy), giving them 24/7 access to a concierge to report any issues, and offering instant access to a network of over 10,000 vetted contractors to keep the home in good repair. 

Visit our homeowner's page to find out more about how our services are helping people to ditch property management in Seattle, Redmond, San Francisco, San Diego, Los Angeles, Tampa, Oakland, Orlando, Jacksonville, Miami and many more.

Melanie Kershaw

Mel Kershaw is a Content Lead at Belong. With an extensive background working with technology companies including Eventbrite and Yelp, she’s always looking for ways to create educational and informative articles that simplifies tech and solves problems for her audience.

Flora Fiorillo

Tamara Epelbaum

Belong

Andrea Vale

Ashleigh Graf

Flora Fiorillo

Tamara Epelbaum

Belong

Andrea Vale

Ashleigh Graf