A simple (1 page) lease agreement is a legally binding form used for renting out residential real estate. The form binds a landlord and one or more tenants for the full length of the lease. Unlike a standard residential lease, the form contains the bare-minimum for being an effective lease, foregoing many of the clauses found in standard leases.
Simple vs Standard Lease
Overall, both lease-types are used for the same thing: renting out an apartment, home, room, condominium, or other residential property to a tenant. Where they differ is the level of detail of each agreement. A standard lease covers every aspect of the agreement; pets, notices, the landlord’s agent, and many other optional clauses can be found in the form. While these are arguably important for making a sound agreement, they aren’t mandatory in order to make a binding lease.
A simple lease, on the other hand, is a one (1) page form that only includes what is necessary to bind the parties into an effective agreement with one another. When two parties have mutual trust in each other and are seeking a fast solution without all the clauses, a simple lease can be used.
The following must be included (at a minimum) in order to have a binding lease:
- The parties – The names of the landlord and tenant(s).
- The premises – The property and address of the subject being leased.
- Rent – How much money ($) the tenant has to pay on a regular basis.
- Term – Detailing when the simple lease expires.
- Signatures – Ability for all parties to sign in order to be legally binding.
Importance of Screening the Tenant
Because this agreement is a bare-bones version of a more standard rental agreement, it doesn’t contain the clauses that would normally be included. These clauses are necessary for adding structure to the agreement, which aids in ensuring both parties understand their rights and what they can and cannot do. A potential consequence of having too broad of an agreement is that the tenant can “act out”, and then claim they didn’t see their action as against the rules of the lease.
To help offset the risk of an unruly tenant, landlords can make use of rental applications, paid background checks, references, and so on. With a rental application, the landlord can see an overview of how applicants behaved during previous renting experiences. If there are any warning signs, the landlord should make an unemotional decision as to whether the tenant should be permitted to rent or not.
How to Write
Step 1 – Parties
The first section is used for establishing who will be bound by the agreement. This includes the date of the agreement, the name and address of the landlord/property manager, and the name(s) of the tenant(s).
Step 2 – The Property Address & Type
Write the full address of the rental property. If a unit number (#) exists, this should be included as well. Then, check the box corresponding to the type of property.
Step 3 – Term Length
The “term” is the length of the agreement. Residential leases can be made to have any term, although terms of one (1) year are the most common. To complete, enter both a beginning and end date.
Step 4 – Rent ($)
Enter the amount ($) of rent the tenant is required to pay on a monthly basis. Then, enter the day of the month that the tenant has to pay the rent by (the common date is the first of the month). The landlord should write a brief set of instructions for how the tenant should go about paying the rent. This can include requiring payment via check, online transfer, or an ACH deposit.
Step 5 – Security Deposit
A security deposit is a reimbursable deposit made by a tenant that is used to cover any damage caused to the rental during the lease term. Deductions cannot be made to the deposit for fixing normal wear and tear. If the landlord intends to charge a deposit, the first box should be checked. Then, the amount ($) of the deposit should be entered (typically equal to one (1) month of rent) and the landlord should enter the number of days they have to return the deposit to the tenant. If the landlord won’t require a deposit, the lower (second) box should be checked.
Step 6 – Signatures
To complete the agreement and make it official and binding, the parties will need to 1) sign their names, 2) print their names, and 3) enter the dates in which their signatures were written.