Lease Agreement Template (Residential and Commercial)

Residential leases sit on a thick stack of state landlord-tenant statutes — the implied warranty of habitability applies in 48 states (Arkansas and Mississippi excepted), security-deposit caps and return timelines are statute-set, mandatory disclosures (lead, mold, bedbug) are non-waivable, and eviction notice and process are tightly prescribed. Commercial leases are governed primarily by contract — the implied warranty of habitability does not apply, security deposits are uncapped, and the landlord can structure rent escalations, CAM pass-throughs, percentage rent, and exclusive-use covenants however the parties agree. Commercial tenants have far less statutory protection and must negotiate it into the contract; sophisticated commercial tenants insist on caps on controllable CAM, audit rights, and structural-element carve-outs from "tenant repairs everything" clauses.

Residential security deposit caps (2024–2025): California — 2 months whether furnished or unfurnished under AB 12, effective July 1, 2024 (Civ. Code §1950.5(c)(1); previously 2 months unfurnished and 3 months furnished); New York — 1 month for unregulated units (HSTPA 2019, Gen. Oblig. Law §7-108(1-a)); Massachusetts — 1 month plus first/last month plus key fees (G.L. c. 186 §15B); Illinois — no statewide cap, Chicago RLTO caps at 1.5 months for buildings ≥6 units; Texas — no statutory cap. Several states (NY, MA, NJ) require the deposit to be held in a segregated interest-bearing account; failure to do so is a forfeit-the-deposit error. Commercial leases have no statutory caps anywhere in the United States.

Highly state-specific. California: 3-day pay-or-quit notice (CCP §1161(2)). New York: 14-day rent demand under RPAPL §711(2) for residential (HSTPA 2019 extended the prior 3-day window). Texas: 3-day notice to vacate (Prop. Code §24.005) — can be reduced to as little as 1 day by the lease but cannot be eliminated. Florida: 3-day notice. Massachusetts: 14-day notice to quit (G.L. c. 186 §11) plus 30-day cure for first-time nonpayment. After the notice period expires, all jurisdictions require court process (summary process, unlawful detainer); self-help eviction (changing locks, removing belongings, terminating utilities) is unlawful and triggers significant statutory damages — California Civ. Code §789.3 imposes $100 per day plus actual damages and attorneys' fees.

Federal: lead-based paint disclosure for any residential dwelling built before 1978 (24 C.F.R. §35.92; 42 U.S.C. §4852d) — failure carries $20,193 per violation plus treble damages and plaintiffs' attorneys' fees. State disclosures vary widely: California — mold (Health & Saf. Code §26147), bedbug (Civ. Code §1954.603), Megan's Law notice, flood-zone (Civ. Code §1102.6c), demolition permit, smoking policy, and military-ordnance proximity; New York — bedbug history (NYC), lead paint, fire safety, allergen hazard (NYC), Window Guard Notice; Texas — Special Flood Hazard Area (Prop. Code §92.0135) and right-to-vacate for family violence (§92.016); Massachusetts — lead paint plus rent insurance notice (G.L. c. 186 §21). Most failures trigger statutory penalties.

Yes, with notice, for defined purposes — but the right is heavily regulated by state law. Most states require 24–48 hours' advance written notice for non-emergency entry. California Civ. Code §1954 requires 24 hours of written notice and entry only during normal business hours (typically 8am–5pm weekdays under case law). New York requires reasonable notice but no statutory minimum statewide. Massachusetts G.L. c. 186 §15B(1)(a) requires "reasonable notice." Permitted purposes typically include necessary repairs, agreed services, showings to prospective tenants or purchasers, and emergencies. Self-help entry without notice (other than genuine emergencies) is a trespass and may trigger statutory damages.

Normal wear and tear is the deterioration from ordinary use over time — faded paint, minor carpet wear, small nail holes, light scuffing on walls, worn caulking. Landlords cannot deduct from the security deposit for normal wear and tear. Deductible damage includes: large or numerous wall holes requiring patching and repainting beyond a single coat, broken fixtures or appliances, pet damage (scratched floors, urine-stained carpet), stains requiring professional cleaning or replacement, smoke damage, and any damage from negligence or abuse. Most states require an itemized deduction list within a statutory window after move-out — CA 21 days; MA 30 days; NY 14 days under HSTPA. Failure to deliver waives the deductions and may trigger double or treble damages on the entire deposit (MA, NJ).

Federal law does not cap rent. State and local rent control or rent stabilization does. California AB 1482 (Civ. Code §1947.12) caps annual residential rent increases at 5% plus CPI or 10%, whichever is lower, after 12 months of tenancy — applies to most multi-family units more than 15 years old. Oregon SB 608 caps at 7% plus CPI (statewide, the first such law in the U.S.; 2024 cap is 9.9%). New York City has rent stabilization for buildings of 6+ units constructed before 1974, with annual increases set by the Rent Guidelines Board. Local rent-control ordinances in San Francisco, Oakland, Berkeley, Los Angeles, DC, Newark, Jersey City impose additional caps. Texas, Florida, and most southern states prohibit local rent control by statute.