What to Include in a Strong Lease Agreement (and What to Avoid)

magezitjeff
Oct 28
3 min read

A solid lease agreement is the backbone of a smooth landlord-tenant relationship. Whether you’re renting out a single-family home or managing multiple properties in Memphis, having a clear, detailed lease protects both parties and prevents costly misunderstandings.

In this post, we’ll walk you through what to include in a strong lease agreement—and just as importantly, what to leave out.

What to Include in Every Lease Agreement

1. Basic Information and Parties Involved

Start with the essentials:

Names of all tenants (not just the primary renter)
Property address and unit number
Landlord or property management contact details
Lease start and end dates

Every person living in the home should be listed to ensure full responsibility for rent and damages.

2. Rent Details and Payment Terms

Be specific about:

Monthly rent amount
Due date (e.g., the 1st of each month)
Accepted payment methods (online, check, etc.)
Late fees and grace period, if applicable

💡 Tip: Outline what happens if rent is late — for example, a $50 late fee after 5 days. Transparency keeps expectations clear.

3. Security Deposit Rules

Tennessee law allows landlords to collect a security deposit to cover damages or unpaid rent, provided it is handled properly. the Your lease should clearly state:

Deposit amount
Where it’s held (per TN law, in a separate account)
Conditions for withholding any portion of it
When and how it will be returned after move-out

Avoid vague wording like “deposit may be returned at landlord’s discretion.” Always specify the terms to stay compliant.

4. Maintenance and Repairs

This section helps avoid finger-pointing later. Outline:

Who handles yard work, pest control, and basic upkeep
How tenants should report maintenance issues
Response times for non-emergency vs. emergency repairs

Example: “Tenant must promptly report water leaks or appliance failures. Landlord will respond to emergency repairs within 24 hours.”

5. Rules About Pets, Smoking, and Guests

If you allow pets, include a pet addendum stating:

Allowed species, breeds, or size limits
Any pet deposits or monthly pet rent
Responsibility for pet damage or odor

Also, note your smoking policy (inside or outside only) and the limits on long-term guests — typically no more than 14 consecutive days without prior approval.

6. Lease Renewal and Termination Terms

Explain how the lease renews or ends:

Does it auto-renew month-to-month or end automatically?
How much notice is required for non-renewal (typically 30–60 days)?
Under what conditions can either party terminate early?

Clear rules here help avoid last-minute surprises.

7. Legal Clauses and Signatures

Include clauses about:

Right of entry for inspections (with notice)
Compliance with local and state laws
Dispute resolution process (e.g., mediation before court)

And of course, both parties should sign and date the agreement. Digital signatures are acceptable and enforceable in Tennessee.

What to Avoid in a Lease Agreement

Illegal Clauses: Don’t include anything that violates Tennessee landlord-tenant law — such as waiving a tenant’s right to habitable living conditions or their right to withhold rent for major repairs.
Vague Language: Avoid unclear terms like “tenant responsible for all damage.” Specify exactly what that means (e.g., tenant pays for damage beyond normal wear and tear).
Verbal Add-Ons: Never rely on “handshake agreements.” Everything should be written in the lease — from parking rules to appliance use — to ensure enforceability.
Outdated Templates: Laws change. Using old templates downloaded online can lead to illegal clauses or missing disclosures. Always update your lease yearly or review it with a property management professional.

Final Thoughts

A strong lease agreement isn’t just paperwork — it’s a roadmap for a smooth rental experience. By being detailed, fair, and transparent, you protect your property, your income, and your relationship with your tenants.

If you’re unsure whether your lease covers everything, our property management team can help you create or review a professional, legally sound lease tailored to your rental.

👉 Contact us today to make sure your next lease sets you up for success.