Over the years we have gone through a few residential apartment lease variations, and I thought it could be useful to share some of the critical elements that we have added along the way.

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As any landlord knows who has gone through a legal case, having an ironclad contract between you and your tenant is critical in your prosecution or defense should you ever need to reference the lease agreement. I once heard these contracts should be called disagreements, because that’s the only time you actually need them.

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This is not legal advice. I’m not an attorney. Get your own!

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Here are 10 critical elements that we ensure are written into all of our leases. Ok… this might be more than 10, but consider it a bonus. I made it 10 sections.

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1. Get the Basics Right

There’s a reason this is number one. It seems obvious, but according to some of the leases I’ve seen over the years, we need to go back to the beginning.

Term

Decide the length of your lease. We prefer one-year terms to evaluate market conditions annually and give tenants stability. Whatever term you choose, triple check your dates.

Contact Information

Verify all tenant contact details (phone and email), and be sure they have yours. If a tenant changes their number, make sure there’s a signed acknowledgment so they can’t later claim they were unreachable.

Entity Info

If you own properties across multiple LLCs, make sure the correct entity is listed as the landlord. These small details matter.

2. Rent Details

Spell out the rent both numerically and in words. Include:

• Due date
• Late date
• Amount
• Payment recipient

You’ll need this spelled out clearly if any issues arise.

3. Notes Section

Leases can have nuance. It’s smart to include a section where you can write out any special terms or circumstances for a specific tenant.

4. Payment Method Agreement

Set expectations from day one. If you prefer ACH payments, say so. If you allow cash, checks, or other options, specify that and agree on the method up front so both parties get into a rhythm.

5. Late Fee Clause

Don’t leave money on the table. Know your state laws. In Massachusetts, landlords can charge a $50 late fee once rent is 30 days overdue. Make sure it’s in your lease if you plan to enforce it.

6. Security Deposit Compliance

If you collect a security deposit, follow your state laws to the letter. In Massachusetts, failing to do so could make you liable for triple damages. Not worth the risk.

7. Rules and Regulations

Your lease should have clear sections for:

• Maintenance & Repairs
• Damage to Premises
• Assignments & Subletting
• Pets
• Abandonment
• Alterations & Improvements
• Hazardous Materials
• No Illegal Activity

Don’t give tenants loopholes. Most tenants are great—but for the 10–20% who aren't, these clauses protect you.

8. Utilities

Clarify who pays for which utilities. This avoids he said / she said issues around heat, lights, water, etc.

9. Indemnification Clause

This won’t protect you from everything, but having tenants agree to hold the landlord harmless for damages or injuries on paper adds a layer of defense.

10. Default & Legal Fees

If a tenant defaults, the lease should clearly outline what happens next.
Also: include an attorney’s fees clause stating that the tenant may be liable for legal costs if action is needed. There’s no guarantee you’ll collect, but it helps.

Bonus: Property Condition Statement

Include a condition form that both parties sign. This confirms that:

• Fixtures, appliances, doors, etc. are functioning properly
• Any existing defects (scuffs, marks, etc.) are acknowledged

This protects both parties and sets clear expectations for move-out condition.

Final Thoughts

Whether you want to call that 10 or 14, hopefully you find a few of these useful.

Being a great landlord starts with covering the fundamentals. When your lease is clear and complete, you’ll look professional to:

• Tenants
• Property managers
• Attorneys
• Lenders

All of whom will likely review your lease at some point.

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Thanks for reading. And if you feel like sharing feedback, we’ll put it in our special corporate filing cabinet. 😉

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Cheers!

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