What this form is for
This form establishes the legal rental agreement between a property owner (landlord) and a tenant for a residential property over a fixed period. Lenders review these leases when evaluating rental income for commercial real estate loans or small-business owner qualification.
Before you start
- Property address including unit number, city, state, and ZIP code
- Monthly rent amount you have agreed upon with the tenant
- Security deposit amount (typically one to two months' rent, but verify your state maximum)
- Lease start date and end date (most common terms are 12 months)
- Names and contact information for all adult tenants who will occupy the property
- Your state of operation, as lease laws vary significantly and you must use state-compliant language
- Details on utilities: which you pay versus which the tenant pays
- Pet policy if applicable, including any additional pet deposit or monthly pet rent
Step-by-step
1. Select your governing state at the top of the form. State law dictates notice periods, deposit limits, and eviction procedures, so this choice affects the entire document.
2. Fill in the parties section with your full legal name (or LLC name if the property is held in an entity) as landlord and all adult tenants' full legal names.
3. Enter the complete property address in the premises section exactly as it appears on the deed or title.
4. Specify the lease term by entering the start date and end date. Confirm these dates align with your desired occupancy schedule.
5. Record the monthly rent amount in numbers and spell it out in words if the form requests both. Indicate the due date each month, typically the first.
6. Enter the security deposit amount. Note whether this will be held in an interest-bearing account if your state requires it.
7. Complete the utilities and services section by checking boxes or filling blanks to clarify landlord versus tenant responsibility for water, electric, gas, trash, internet, and other services.
8. Review tenant obligations and landlord obligations sections. Initial or check acknowledgment boxes confirming both parties understand maintenance duties, entry notice requirements, and repair responsibilities.
9. If pets are allowed, complete the pet addendum section with species, breed, weight, and any additional deposits or monthly fees.
10. Sign and date the document. Ensure every adult tenant signs. Provide each party with a fully executed original copy.
What lenders look for
- Banks verify rental income by requiring signed lease agreements showing consistent monthly revenue. Missing signatures or blank rent fields will delay your loan approval.
- Underwriters compare your stated rental income on loan applications against the monthly rent figure on this lease. Discrepancies raise red flags and require written explanations.
- Short-term leases under six months remaining may not count toward qualifying income. Lenders prefer leases with automatic renewal clauses or at least nine months remaining at application.