15 Essential Clauses to Include in Your Residential Lease Agreement

When investing in buy-and-hold properties, it’s crucial to utilize the best resources to maximize returns. As a landlord, one of the most important tools at your disposal is a comprehensive residential lease agreement. This legal document outlines the rights and responsibilities of both landlord and tenant, reduces potential misunderstandings, and ensures you’re protected in worst-case scenarios.

While many landlords include standard items—like rent amount, due dates, and security deposits—some critical clauses are often overlooked; these key clauses can be the difference between a smooth tenancy and a costly legal battle. Here are six essential lease clauses to help safeguard your real estate investments, along with additional clauses and tips sourced from trusted industry experts.

1. Subletting Rules (or No Subleasing Allowed)

Subletting can expose your property to occupants you haven’t screened or approved. Including a clear subleasing clause ensures you retain control over who resides in your rental.

A strong sublease clause should either:

• Prohibit subleasing entirely, or
• Outline strict conditions for approval, including written requests, tenant screening, and minimum stay durations.

You can even specify whether platforms like Airbnb are permitted. If a tenant violates this clause, you preserve your right to terminate the lease and pursue damages.

2. Early Termination Clause

Tenants sometimes need to leave before their lease ends—whether for job changes, emergencies, or personal reasons. Without an early termination clause, you risk lost income and unclear responsibilities.

This clause should define:

• Valid reasons for early termination
• Required notice period (typically 30–60 days)
• Financial penalties or forfeiture of deposit
• Tenant responsibilities (e.g., paying rent until a new tenant is found)

Some leases also include a lease breakage clause for added flexibility, allowing either party to end the lease under pre-agreed conditions.

3. Cleaning & Lawn Care Clause

It’s common to assume tenants will maintain the property—but without a cleaning clause, enforcement becomes difficult.

Be specific about:

• Interior cleanliness standards
• Lawn and exterior maintenance
• Consequences for violations (e.g., deductions from the security deposit)

You can write something like:
“The tenant(s) shall keep all the areas around the property address in a clean, habitable condition (normal wear and tear excepted). At the end of the term, the property shall be returned in the same condition, subject to inspection.”

4. Painting Rules

Tenants who decide to repaint without approval can create costly repairs. Avoid this with a painting clause that covers:

• Whether tenants can paint
• Required approval process
• Rules for returning walls to their original condition
• Any charges for unauthorized painting

A recommended clause, “Tenant(s) shall be held liable for re-painting costs to restore the premises to their original condition.”

5. Noise (Quiet Hours Clause)

If your property is in a multi-family building or family-friendly neighborhood, noise disturbances can be a major issue. Quiet hours clauses are essential for maintaining peace and avoiding complaints.

Include:

• Set quiet hours (e.g., 10 PM – 7 AM)
• Restrictions on loud music or gatherings
• Consequences for violating the clause (e.g., written warnings or lease termination)

We recommend reinforcing the clause with local city or HOA noise ordinances to give it more authority.

6. Force Majeure Clause

A force majeure clause relieves both parties from lease obligations due to unforeseeable circumstances, such as:

• Natural disasters
• War or terrorism
• Government shutdowns
• Pandemics

By including this clause, landlords avoid liability when the property becomes uninhabitable due to events beyond their control. Tenants also gain clarity about how such situations are handled.

Additional Clauses Every Landlord Should Consider

To fully protect your property and avoid ambiguity, consider including these additional clauses.

7. Right to Entry (Access to Premises Clause)

Landlords must respect tenants’ privacy, but also need access for inspections, repairs, and emergencies. A right-to-entry clause should include:

• Advance notice period (typically 24 hours)
• Acceptable entry times (e.g., weekdays 9 AM – 6 PM)
• Conditions under which entry is permitted (emergency, repairs, inspections)

8. Renewal & Holding Over Clause

This clause ensures you’re not left guessing whether your tenant is renewing. Outline:

• Whether the lease automatically renews or converts to month-to-month
• Required notice period for non-renewal (usually 30 or 60 days)
• Penalties for overstaying after lease expiration

9. Rent Payment Details and Late Fees

Be very clear about:

• Rent due date and grace period (e.g., 5 days)
• Accepted payment methods
• Late fee amount and when it applies
• Returned check fees

A well-drafted rent clause ensures consistent cash flow and avoids tenant excuses.

10. Indemnification Clause

This clause protects landlords from liability if a tenant causes harm to a third party or damages the property due to negligence.

Example:
“The tenant shall indemnify and hold harmless the landlord from any claims, damages, or legal fees resulting from tenant actions or negligence.”

11. Use of Premises Clause

Clarifies what tenants can and cannot do in the unit:

• No commercial businesses
• No illegal activity
• Limits on occupancy
• Guest policies (including pet and party restrictions)

You can also include a guest responsibility clause, holding tenants accountable for damages caused by visitors.

12. Maintenance and Repairs Clause

This clause sets the expectations for who handles what maintenance. Define:

• Landlord responsibilities (e.g., plumbing, HVAC)
• Tenant responsibilities (e.g., replacing lightbulbs, trash removal)
• Reporting process for maintenance requests
• Consequences of tenant negligence

Tip: Require all requests in writing or via your property management platform.

13. Utility Payment Clause

Avoid disputes by clearly stating who pays which utilities. For shared systems (like central heating), consider:

• Meter readings
• Usage limits
• Penalties for excessive usage
• What happens if utilities become temporarily unavailable

14. Smoking and Pet Policies

State clearly if smoking and pets are:

• Prohibited
• Allowed with restrictions
• Allowed with added fees or deposits

Include cleaning or repair costs associated with pet damage or smoke remediation.

15. Parking Clause

Designate:

• Assigned tenant spots
• Visitor parking rules
• Towing policies for unauthorized vehicles

For buildings with valet or paid parking, clarify charges and liability.

Protect Your Real Estate Investments With an Airtight Lease

Landlords often underestimate the importance of a detailed, well-structured lease agreement. Yet, every clause you include adds a layer of protection for your property, your income, and your peace of mind.

Whether you’re managing one rental home or scaling a large portfolio, the lease is your frontline defense. Don’t rely on generic templates. Customize your agreements to reflect the realities of your market, property type, and tenant expectations—and always consult a real estate attorney for legal compliance.