By: Sharlene Mulchandani
Real estate investors are managing successful rental businesses across the U.S. But there’s no doubt that some landlord friendly states make better long-term investments than others.
The best investors don’t only know how to invest, but where to do so. The success of a rental property investment often depends on landlord tenant laws in the localized market it lies in, but certain states make investing inherently easier for landlords due to legal regulations and lease agreement policies.
Whether you’re a new or seasoned investor, knowing where to target your next rental property investment is critical. In this article, we’ll cover the criteria to be on the lookout for as well as the top five best states for landlords and successful rental property owners.
What Does It Mean for a State to Be Landlord Friendly?
When a state is landlord friendly, its policies, rental regulations, current market conditions, or other factors are favorable to landlords and investors. For instance, a high average rental income and rental rates can make a state attractive to real estate investors, but so can lax legal regulations found within a state’s landlord-tenant code. The most landlord friendly states have a favorable combination of these factors, even if they don’t have every single one.
In 2025, many states are reevaluating rent control and eviction protections, making it even more critical to invest in regions that protect landlords’ rights and profitability.
What Makes a State “Landlord-Friendly”?
Here are a few of the factors that make a state landlord friendly.
1. Low property taxes and insurance rates
Property tax rates are one of the biggest factors landlords look at when deciding whether to invest in rental properties in a state. Some states have an extremely high rate for property taxes, while others have lower property taxes, which are more favorable property laws for investors and especially for those who own or plan to own multiple rental properties.
Insurance rates are also a consideration. The national average cost of landlord insurance is around 20% more than a typical homeowner’s policy, but rates vary by location. This is a result of different levels of risk in different areas of the country— some states have more natural disasters than others, and the risk of unpaid rent, damages, and other issues also varies. As a result, landlords consider both the property taxes and insurance rates that will affect their rental property assets before choosing to invest.
In 2025, Florida, Louisiana, and California saw landlord insurance premiums rise by due to increased climate risk. Many insurers in Florida and Louisiana became insolvent after multiple Hurricane disasters, leading to a tightened insurance market and fewer available policies. State Farm recently discontinued 72,000 home policies in California, as the threat of wildfires have driven costs up due to high risks and regulatory burdens.
In contrast, states like Indiana and Ohio remain relatively affordable when it comes to landlord insurance. In Indiana, the cost of landlord insurance averages at $936 per year, and in Ohio at $966. These states benefit from fewer natural disasters, lower population densities, and a historically lower rate of catastrophic claims. Their moderate climates reduce the risk of widespread damage from hurricanes, wildfires, or earthquakes, allowing insurers to keep premiums predictable and competitive.
In each of the above mentioned states as well as others, insurance is a major factor that influences the renting/leasing environment for landlords.
2. No statewide rent control (or banned)
Rent control laws are laws that regulate or restrict the price landlords can ask tenants to pay rent. Rent control is often instated to keep markets in check and reduce the likelihood of unpaid rent due to unreasonable rates.
Across the U.S. states, there are a variety of approaches to rent control. A state can either:
- Instate state-wide rent control laws (to which all localities must comply)
- Not enforce state-wide rent control, but allow localities to instate it
- Only allow rent control during emergencies (e.g., the COVID-19 pandemic)
- Ban it entirely (also known as pre-empted status)
The most landlord friendly states have either banned rent control entirely or have very few cities and localities that enforce it. No rent control doesn’t guarantee that tenants will pay rent on time, but it does guarantee that rent prices won’t be formally capped by the government.
As of 2025, 32 states have rent control bans or preemption laws in place, including Texas, Arizona, and Indiana. Meanwhile, new legislation expanding rent control is under consideration in states like Massachusetts, Illinois, and Washington.
In Massachusetts, lawmakers are reconsidering rent control for the first time since its repeal in 1994, with Boston leading the push for local authority. Illinois has multiple active bills, such as House Bill 116, proposing to repeal its rent control preemption law, with strong backing from tenant rights groups in Chicago. Washington State is also exploring statewide rent stabilization measures after a sharp increase in housing costs across cities like Seattle and Tacoma.
If you aren’t aware of the status of rent control in your state and city, now is the time to dive into these laws – you may find that a new bill has been proposed or even passed since you last checked.
3. No or few restrictions on late fees/security deposits
Most states have laws and security deposit restrictions regulating the amount landlords can charge for certain fees and deposits, such as late fees for unpaid rent and security deposits. Landlord-friendly states have no/few restrictions or relatively lax restrictions. For example, a landlord-friendly state may allow landlords to choose their own late fee amounts when tenants do not pay rent, charge fees as soon as unpaid rent is late, collect large security deposits, and/or allow landlords ample time to deduct funds from deposits when the lease on the rental property ends.
States like Georgia and Indiana give landlords full control over late fees and security deposits. Landlords in Georgia and Indiana can charge any amount they see fit, set their own timelines for collecting and returning deposits, and enforce fees immediately when rent is late. However, although uncapped legally, courts may strike down unreasonable fees in these states. Still, this flexibility lets landlords protect their properties and adjust terms based on tenant risk or local demand.
In contrast, tenant-friendly states like California and New York enforce strict limits with tenant-centric regulations. California caps security deposits at one month’s rent for unfurnished units and two months for furnished. New York allows only one month’s rent, no matter the unit type. Both states require landlords to return deposits quickly—within 14 days in New York—and include itemized deductions. They also restrict late fees and often require a grace period before landlords can apply them.
Both late fees and security deposits impact the bottom line for landlords, so if you’re looking into investing in a state with limits on either, be sure to do your research.
4. Quick eviction process
Lease violations inevitably lead to the eviction process, which can often be tedious and costly. Landlord-friendly states make it easy for landlords to remove tenants who do not pay rent or repeatedly violate their rental agreements. Although eviction is a complex legal procedure in every state, some states’ rental laws make the process quicker, easier, or less expensive than others.
Eviction speed is a critical metric for investors. In Florida, the average legal eviction process takes less than 30 days. In contrast, the average process in New Jersey may take three weeks to three months (or longer) depending on court backlogs. Understanding eviction speed is essential for any investor considering a property in a given state.
5. Business-friendly regulatory environment
Landlords should also consider whether a state imposes additional licensing, rental registration, or inspection requirements.
States like Texas do not require statewide rental licenses, while cities like Los Angeles and Boston impose strict requirements. However, cities like Dallas have adopted laws where a landlord must register their properties with the city yearly.
1031 exchange friendliness, capital gains taxes, and inheritance laws are key factors that also vary. States like Ohio, Nevada, and South Dakota are known for low or no estate/investment taxes, which is ideal for long-term wealth building. Ohio does tax income (including capital gains) but has no estate or inheritance tax and there is no state capital gains tax in Nevada, South Dakota, Florida, Texas, Wyoming, Alaska, Tennessee, and New Hampshire. All of these factors should be involved in an investment decision you’re making.
Top 5 Most Landlord Friendly States
Now that you know which factors make a state landlord friendly, here are the top five best landlord friendly states for your 2024 investments.
1. Alabama
Alabama makes our list due to its low tax rates and lax rental laws and fee regulations.
- Second lowest tax rate (0.40%) in the U.S., according to Rocket Mortgage
- No statewide rent control
- No limit on late fees
- No mandatory grace period for rent
- Extra-long period to return security deposits (60 days)
- Seven-day eviction notice period for unpaid rent and other lease violations
- Tenants are not permitted to withhold rent or repair and deduct if the landlord fails to remedy a condition
- Fun fact: The median home value in Birmingham dropped 5.1% since 2024. Homes still go to pending in around 20 days, indicating steady demand despite the price drop.
2. Colorado
Colorado makes the list of best states for rental property owners due to its low tax rate, rent control ban, and lax rental laws/fee restrictions.
- Third lowest property taxes rate in the U.S. (0.55%), according to Rocket Mortgage
- Banned rent control
- No security deposit limit
- Extra-long period to return security deposits (60 days)
- No advanced notice required before entry for most reasons
- Shorter eviction notice periods for unpaid rent and lease violations (three to ten days)
- Fun fact: Vacancy rates in Colorado have hit 7% in the first quarter of 2025, the highest level in 15 years–partially driven by approximately 20,000 new apartments added in 2024
3. Arizona
Arizona is one of the best landlord friendly states due to its relatively low tax rate and shorter eviction notice periods for rental properties.
- Low property taxes (0.63%)
- No statewide rent control
- Shorter eviction notice periods (five to ten days)
- Fast eviction process (5-day notice for nonpayment, 10-day notice for lease violations)
- Minimal restrictions on late fees
- Fun fact: Median rent prices decreased 7% in Phoenix in 2024, yet Phoenix still maintains a reputation as a high-growth metro
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4. Texas
Texas is one of the top landlord friendly states due to its expedited eviction process and several cities with high rental rates.
- No statewide rent control
- No security deposit limit
- No advanced notice necessary before entry into a rental property
- Three-day eviction notice period for all lease violations
- Option to file for “immediate possession”
- Has a tax rate of 1.68%, according to Rocket Mortgage
- Fun fact: Austin ranked No. 1 among U.S. metros for the largest year-over-year drop in median rent, according to a Redfin report released May 12, 2025. The median rent in the Austin-Round Rock area fell 9.6% from the previous year to $1,399, making it the only metro in the country to approach a double-digit decline.
5. Ohio
Although Ohio has higher property tax rates, it is nonetheless one of the best states for landlords to invest in due to its open security deposit policy, lax lease agreement regulations, and simple eviction process.
- No statewide rent control
- No late fee limits
- No mandatory grace period
- No security deposit limit
- Short eviction notice period for nonpayment (three days)
- Fun fact: Columbus and Cincinnati have become midwestern investment hotspots in 2025, with average gross rental yields of between 7%-12%, and low competition compared to coastal cities.
Honorable Mentions
Below are some of our honorable mentions for most landlord friendly states:
- Nevada – Nevada has a notoriously speedy eviction process that many lawmakers have attempted to revise. Currently, Nevada makes it very easy to remove a tenant under an expedited summary process action.
- Florida – Florida has no statewide rent control, no security deposit limit, and shorter eviction notice periods.
- Illinois – Illinois has no statewide rent control, no late fee limit, no grace period minimum, and shorter eviction notice periods.
- Indiana – In Indiana, rent control is banned, there is no late fee limit or grace period minimum, and there is also no security deposit limit.
- Michigan – In Michigan, rent control is banned, and there is no late fee limit, security deposit limit, or mandatory grace period for rent.
City and Local Regulations
When we talk about a state being “landlord friendly,” we’re referring to its statewide conditions and regulations. It’s important to remember that county and municipal regulations are overlayed over state laws. These localities often establish stricter regulations for properties within their boundaries than the ones enforced by the state itself.
This means there are better and worse cities for landlords in even the most landlord friendly states. It’s up to the investor to do their research into the individual local laws that may apply in the area they intend on investing in. Be sure that your lease or rental agreement complies with local regulations in addition to state ones.
For example, while Arizona preempts rent control statewide, the city of Tucson passed a 2024 ordinance requiring rental registration and safety inspections. Always confirm local rules before purchasing.
Does “Landlord Friendly” Mean “Tenant-Unfriendly”?
It’s worth noting that just because a state is landlord friendly, this doesn’t necessarily mean that the state is hostile to tenants. It just means that this state’s policies or conditions are ideal for landlords or real estate investors. Every state has protections in place to guard tenant rights and make sure that both parties within a rental agreement are treated fairly under the law.
In fact, many landlord-friendly states also rank well for tenant satisfaction and rent affordability, proving that fair laws can benefit both parties when enforced properly.
Tips for Landlords in All States
Not every state makes property management easy, and there are barriers for landlords in every state. If you’re investing or operating rentals in a tenant-friendly state, here are smart ways to act in your best interest and protect your bottom line:
- Know the local laws. Understand rent control rules, eviction timelines, deposit limits, landlord-tenant regulations, and entry restrictions in your city and state.
- Set expectations early. A well-structured lease that clearly spells out rent due dates, maintenance obligations, late fees, and entry policies protects both parties and reduces miscommunication.
- Get serious about documentation. Keep thorough records of communication, payments, inspections, and repairs. In highly regulated areas, having proof on file is often the difference between winning or losing a legal dispute.
- Invest in preventative maintenance. Regular property upkeep isn’t just about avoiding tenant complaints, it keeps you in compliance with strict habitability standards and minimizes costly emergencies.
- Build relationships with local professionals. Connect with experienced attorneys, real estate agents, and contractors in your area. These professionals can help you navigate red tape and avoid fines.
- Use software to stay organized. Property management platforms can help you automate lease tracking, maintenance requests, rent reminders, and more.
- Prioritize tenant quality over speed. In places where evictions are slower or more expensive, it’s worth spending extra time upfront to find responsible, communicative tenants, even if that means a longer vacancy.
- Think long-term. In restrictive states, profit margins might be slimmer in the short run. But stable tenants, well-maintained properties, and smart financial planning can still lead to long-term success.
Investing wisely in landlord-friendly states can significantly boost your portfolio’s profitability and sustainability, ensuring long-term success in the ever-evolving real estate market.
Conclusion
If you’re looking to invest in a new property in 2024, the five states listed above are a promising bet. However, be sure you do the necessary research into local/municipal laws on landlord-tenant relations and rental agreement policies so that you are fully informed of the implications of investment wherever you decide. With shifting economic conditions, legal reforms, and rising housing demand in key metros, choosing a landlord-friendly state can protect your margins and simplify long-term portfolio growth.
FAQs
What does it mean for a state to be landlord friendly?
A landlord-friendly state offers policies and regulations that favor landlords, including high rental income potential and lax legal restrictions. Such states often have low property taxes and no rent control, making them attractive to investors.
Why are low property taxes important for landlords?
Low property taxes reduce the overall cost of owning rental properties, making investments more profitable. States with lower property taxes are often more attractive to landlords looking to expand their portfolios.
How does insurance rates affect landlords?
Insurance rates impact the cost of maintaining rental properties. States with lower insurance rates, like Indiana and Ohio, are generally more favorable to landlords as they reduce the financial burden and risk.
What is the significance of rent control laws for landlords?
Banning or limiting rent control allows landlords to set rental prices based on market demand, which can lead to higher profitability. Many landlord-friendly states have either banned rent control or limited its application.
How do eviction processes affect rental investments?
A quick and straightforward eviction process is crucial for landlords to effectively manage property turnover, thereby reducing potential financial losses from non-compliant tenants. This is a key factor in determining a state’s landlord friendliness.
Are landlord-friendly states negative for tenants?
Not necessarily. Many landlord-friendly states maintain fair tenant protections, ensuring that both landlords and tenants can benefit from transparent and equitable rental agreements.
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By John Triplett
Most renters now have a pet, and new Zillow data shows pet-friendly rental listings and pet-inclusive housing listings are typically leased more than a week sooner than others.
Pet-friendly rentals draw more views, saves and shares, and they are typically snapped up eight days sooner, according to a new analysis of more than 11 million rental listings on Zillow last year.
Highlights of the pet-friendly rental listings report:
- Rental listings on Zillow that allow pets are typically leased eight days faster.
- 58% of renters have pets, up from 46% in 2019.
- Austin, Dallas and San Antonio had the highest share of pet-friendly rental listings on Zillow last year
Zillow says in the article that “Renters have more leverage than in quite some time after last year’s multifamily construction boom, and the data show allowing pets can make a difference in leasing out a unit quickly. The median renter is getting older, and more renters now have a pet. Nearly six in 10 renters are pet owners, up from 46% before the pandemic. Almost half say they passed on a particular property because it was not pet-friendly.”
Last year, 57% of rental listings on Zillow allowed pets.
On average, those listings earned 9% more views, 12% more saves and 11% more shares than those that did not allow pets. They were also typically rented out eight days faster.
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Texas rentals are most pet-friendly
Texas has the most pet-friendly rentals, with Austin (80%), Dallas (79%) and San Antonio (78%) leading all major metro areas in the share of pet-friendly rental listings on Zillow last year.
However, Houston had the smallest share of rental listings that allowed pets, at just 38%. Also near the bottom were Providence, R.I., (43%), Hartford, Conn. (43%) and San Jose (44%).
Pet-friendly rentals in the New York City metro area typically rented 26 days faster than units that did not accept pets, the biggest gap of any major market. Tampa (16 days), Columbus (12 days), Phoenix (11 days), Cincinnati (10 days) and Austin (10 days) also saw pet-friendly listings rented out at least 10 days faster.
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By Alexandra Alvarado
You’ve accepted a tenant, taken the listing down, and started prepping the unit only to find out they’ve changed their mind. What now? Whether or not a lease was signed, there are steps you can take to protect your rental income and move forward quickly.
Here’s how to handle the situation depending on where things were left off.
IF THE LEASE WASN’T SIGNED
If a tenant changes their mind before signing the lease, the rental agreement isn’t legally binding in most cases. A verbal promise to rent an apartment is usually not enforceable, especially for lease terms longer than one year.
What you can do:
- Re-list the unit immediately.
- Reach out to previous applicants who may still be interested.
- If you accepted a holding deposit, you may be able to retain a portion to cover your actual costs (such as lost rent or marketing), depending on your state’s laws.
Note: Some states require landlords to refund holding deposits if no lease is signed, minus documented costs. Always check your local regulations.
IF THE LEASE WAS SIGNED BUT THE TENANT NEVER MOVED IN
Once the tenant signs the lease, it becomes a legally binding contract even if they never pick up the
keys or step foot inside the unit.
In this case, the tenant is in breach of contract and may still be liable for rent.
WHAT HAPPENS NEXT DEPENDS ON YOUR LEASE
If Your Lease Has an Early Termination Clause
Some leases include an early termination fee, such as one or two months’ rent. If clearly stated, you may enforce it. However, security deposits are typically intended for damages or unpaid rent, not early termination fees unless your lease clearly says otherwise.
If There’s No Early Termination Clause
You may hold the tenant responsible for rent through the end of the lease term. However, most states (except Arkansas) require landlords to mitigate damages by re-listing the property and trying to find a new tenant as soon as reasonably possible. If you re-rent the unit within two months, for example, the tenant would only owe rent for those two months. You may also be able to recover costs related to advertising the rental or lost income, depending on your state’s landlord tenant laws.
PROTECT YOURSELF GOING FORWARD
You can’t stop a tenant from backing out, but you can protect your investment with a few smart steps:
- Include a clear early termination clause in every lease.
- Use holding deposit agreements if you’re reserving a unit before a lease is signed. Put in
writing whether the deposit is refundable and under what terms. - Document everything including emails, signed leases, and written notices from the tenant.
- Remind tenants in writing that they remain responsible for rent until the unit is re-rented, per
your lease and applicable laws.
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SPECIAL SITUATIONS TO CONSIDER
In some states, tenants who are breaking a lease due to domestic violence, military deployment, or medical hardship may be entitled to early termination without penalty.
DOMESTIC VIOLENCE
Many state laws allow victims to terminate a lease early without penalty if they provide
documentation, such as a police report or protective order. Some states also prohibit landlords from charging break fees in these cases.
MILITARY DEPLOYMENT Under the Servicemembers Civil Relief Act (SCRA), active-duty military members who receive
orders for deployment or a permanent change of station (PCS) can legally terminate a lease early by providing written notice and a copy of their orders.
MEDICAL HARDSHIP OR DISABILITY
In some jurisdictions, tenants may be able to terminate a lease without penalty if they experience a serious medical issue or disability that prevents them from living independently or
safely in the unit. A doctor’s note or other verification may be required.
FINAL THOUGHTS
Tenants backing out is frustrating, but with the right legal structure and documentation in place, it doesn’t have to derail your rental business. Focus on compliance, speed, and communication and keep your lease airtight.
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By: Christa Niemann
Tips for How to Deep Clean Carpets in Your Rental Units
Some properties have a certain look or smell to them that makes you think that someone didn’t take the time to properly take care of it. A large part of the way a rental property seems to prospective renters is the flooring—carpet that is clean, stain-free, and regularly vacuumed is a much better look than a carpet that is harboring dirt and mildew.
But carpet cleaners are expensive. Lucky for you, there’s an alternative: landlords and tenants can clean their carpets themselves. Keep reading to learn how to deep clean carpets better than the pros.
Why Should You Clean Your Own Carpet?
You may be thinking, “why would I ever want to clean my carpets myself?” Although calling those professionals with the fancy carpet-cleaning machines sounds tempting —and it’s satisfying to watch the dirty water tank get poured out after steam cleaning—what isn’t so tempting is how much your wallet will hurt after they come and complete the job.
Knowing a few simple tips and processes to cleaning your own carpets can teach you that you don’t need to shell out precious profit to hire professional carpet cleaning. It all comes down to having the right cleaning materials, the time, and the patience to scrub those tough stains out of your carpet fibers.
Pre-Cleaning Steps
Like any deep cleaning process, an effective carpet cleaning starts with a good pre-clean.
First, gather the supplies. You’ll need a good quality carpet scrub brush. If you don’t have a carpet brush, you can use a broom and dustpan. Using these tools, you can dislodge deeply rooted dirt and debris. Next, a cleaning solution using everyday household items like vinegar and baking soda will help you make your carpet shine. You’ll also need clean towels or cloths and a bucket to use your cleaning solution effectively.
Giving your carpet a thorough vacuuming is the second step in your carpet pre-cleaning process. Don’t just go over the carpet once—be sure to vacuum slowly a few times to remove loose dirt and dust as much as you can.
Finally, before the actual cleaning begins, choose a small, hidden area of carpet to spot test your solution. There are different kinds of carpets that respond better to different carpet solutions, so spot testing whatever solution you’ve made ensures you don’t accidentally discolor or damage your carpet.
Carpet Cleaning Solution Options
Although a vinegar and water solution is the most common natural carpet cleaning agent, there are a few different solutions you could try.
To make a classic water and white vinegar solution, mix equal parts water and vinegar in a spray bottle. This is a simple solution that can avoid common household allergens, reduce use of excess water, and work effectively to strip harmful dirt in high-traffic areas from your carpet.
Another option is dish soap and warm water. Only drop a few drops of dish soap into a bucket and mix it with warm water. Try not to soak the floor when using this solution—surface scrubbing will do.
Baking soda also works wonders to lift up stubborn stains. Start by sprinkling a generous amount across your carpet, then spray on a mixture of water and carpet shampoo over those areas. Once everything dries, you can vacuum up the remaining baking soda.
Shaving cream is a lesser known but old-school carpet hack to treat spills and stains. Apply a small amount of shaving cream to the stain, and let it sit. Or, if you’re looking at an older or shaggier carpet type especially in need of a clean, consider picking up a simple carpet deodorizer.
After applying any of the above solutions, blot the area with a damp cloth or scrub the stain with a brush.
Lastly, spot removers may be necessary to remove particularly stubborn spots or stains.
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Deep Cleaning Without a Machine
Not everyone has access to proprietary cleaning equipment. The following process is a simple yet effective way of cleaning your carpet by hand. Here’s how to deep clean carpet in your rental property:
- Gather the necessary cleaning supplies
- Vacuum your carpet thoroughly
- Create your chosen cleaning solution
- Spot test your solution on a hidden part of your carpet
- Apply your cleaning solution generously, then use a carpet brush to agitate the dirt to the surface
- Rinse the spot by blotting with a wet cloth
- Allow the carpet to dry thoroughly to avoid mildew.
Drying Tips
Properly drying your wet carpet is important so as not to allow mold and mildew to grow. Remember that the faster your carpet dries, the less chance there is for mold or mildew to form from the excess moisture.
Use a wet cloth to blot up most of your solution, then, if needed, use a wet/dry vacuum to suck up as much water as possible. If you don’t have access to a wet/dry vacuum, try to towel dry the area as effectively as you can, and let it air dry.
Maintaining Your Clean Carpets
Like all aspects of a property, your carpet demands regular upkeep and maintenance. Now that you’ve treated your carpet stains, how do you keep your carpets squeaky clean?
One of the simpler, yet effective, methods of keeping your carpet clean is regular vacuuming. You should try to pull out the vacuum cleaner once or twice a week to prevent surface dirt or pet hair from settling.
Also, when you see a spill, treat stains immediately. Spot cleaning instead of allowing the stain to settle is the best shot you have at it not being permanent. Use your homemade cleaning solution or purchase a carpet cleaner at a store for removing pet stains, spilled drinks, nail polish, or any other common stains.
Finally, try not to wear shoes on your carpet. Shoes track in dirt, grime, and who knows what else into your home (and onto your entire carpet). Although you can’t see it, shoes also track in allergens and pollen. The best way to keep your carpets clean is to prevent the stains from occurring in the first place.
Conclusion
Deep cleaning your carpets by hand is a cleaning method that ensures the deepest and most thorough clean without breaking the bank. A clean and well-maintained property is a great way attract renters passing through on a tour or to keep current renters. Remember that your efforts do not go unnoticed – a sparkling carpet is the sign of a dutiful landlord.
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By Kristi Mergenhagen
Embarking on the landlord journey can be exhilarating, but the lease agreement—your legal safety net—can become a source of headaches if not wielded wisely.
Ideally, the lease protects your rental property and your investment, along with the rights of the tenant to use that property. Getting the lease agreement right is important because if issues do arise, the lease provides the basis for resolution. Many standard lease agreements are available, but what exactly you include in your own lease depends on the type of rental property you have and the laws where your rental is located.
When preparing your final lease agreement, there are several important clauses to double-check, as these protect your interest in the property and protect you against excessive liability.
Below, we’ll cover ten essential lease agreement clauses to protect landlords. You can use our guide as a checklist when reviewing your next rental agreement. However, this should not be considered legal counsel and always consult a qualified lawyer if you have any doubts about what to include in your lease.
1 – Severability Clause
Laws do change, of course, and mistakes happen, which means you could find yourself with a section in your lease considered inapplicable under the law. If that happens, you don’t want the rest of your lease to become null and void, leaving you with a tenant with no lease agreement.
A severability clause states that if any portion of the lease is found to be inapplicable, the rest of the lease remains valid. The clause can be simple, stating that if any provision in the lease is invalid, the remaining terms and conditions shall not be impaired in any way.
2 – Use Of The Property Clause
When you sign a lease with a tenant, you aren’t giving them blanket permission to use the property for everything and anything but, rather, for a specific purpose–for example, as a residential living space for the individuals listed on the lease.
This arrangement should be spelled out in the lease, making it clear the tenant can’t use the property for certain activities, such as running a business, providing storage facilities, or subletting as a short-term vacation rental.
Not only does this make tenants aware of what they can and cannot do on the property, but if you do find they’re engaging in any type of banned activity, you could pursue eviction or other legal action on the firm grounds that they have broken the conditions of the lease.
3 – Rent Payments And Late Fees Clause
It’s fundamental that your lease agreement includes how much the tenant must pay you for the use of the property, including the rent and security deposit. The lease should also be clear on the monthly due date and the consequences of missing that date.
If you decide to make the rent due on the last day of every month, most states have a mandatory grace period that you must grant tenants before they start incurring late fees. For example, in New York City, it’s five days. The city also caps that fee at $50 or 5% of the monthly rent, whichever is lower.
You should include the grace period and late fees that you intend to apply in your lease agreement so tenants know the consequences of missing payments. At the same time, what you include in the lease must be in accordance with local laws.
4 – Renewal Clause
Tenants and landlords often decide to renew leases when the original lease term is over. It’s a good idea to include rules about the process in the lease so you aren’t left wondering whether the tenant intends to renew or if you need to start looking for a new tenant.
You can specify that the tenant has a specific period to let you know whether they intend to renew or not—for example, 30 to 60 days. If they don’t let you know within that time frame, you can assume they will move out and proceed accordingly.
You also can set the lease to automatically renew unless the tenant specifically states their intention to vacate. This is more common with month-to-month leases.
It’s good practice to let the tenant know how much notice you will give them if you decide not to renew the lease, perhaps because you intend to use the property for a different purpose. This should be comparable to the notice they need to give you so tenants have time to find a new home if necessary.
5 – Security Deposit Clause
The amount the tenant will pay for the security deposit should be included in the lease, along with the stipulation that they cannot move in until the security deposit is paid.
Landlords also have a responsibility to manage security deposits fairly, so the lease should inform the tenant where and how the security deposit will be held.
The lease should include information on how the security deposit can be spent—for example, to fix damage or pay for excessive cleaning, if required. Remember that you cannot use the security deposit to manage general wear and tear, so if you include this in your lease agreement, it will not be legally binding.
Another provision to include is whether the deposit can be used to cover the last month’s rent. While many landlords allow this for convenience, it’s not always a good idea. If the tenant moves out without paying the last month’s rent, assuming it’s covered by the security deposit, and then the landlord discovers damages, they must pursue the tenant for more money to cover the cost.
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6 – Early Termination Clause
There are many reasons why either you or the tenant may wish to end the lease early. Perhaps they got a new job and need to move to a new city. Since they have signed the lease, the tenant is technically still liable for that rental agreement until its end, but you can include instructions on how they can terminate the lease early if necessary.
This should include how they should let you know and how the outstanding rent will be resolved. You can leave it up to the tenant to find a sublet or make them responsible for the rent until you can find a qualified new tenant, which you are obliged to do promptly.
This early termination clause protects you from lost rental income and helps the tenant understand the right way to break a lease if it becomes necessary.
7 – Right To Entry Clause
When you sign a lease agreement with a tenant, you’re giving them the right to fair use of the property, which then limits your right to enter. With the exception of specific emergencies, such as a fire or gas leak, you must give the tenants at least 24 hours notice before entering the property, including for inspections or repairs.
In some states, you need to give longer notice–for example, 48 hours–for an end-of-lease inspection or to show the property to potential new tenants.
While what you can do is dictated by law, it’s a good idea to make this clear in the lease as well, so tenants know how you will contact them and how much notice you’ll give. You can also state what constitutes an emergency and how long it might take you to visit if they call you.
Bear in mind that if you include elements in this clause that break the law, such as a reduced notice period, this part of the lease agreement will become inapplicable.
8 – Joint And Several Liability Clause
If you have multiple tenants in your property, you may not be particularly interested in how they divide the rent between them, as long as it’s paid. But conflicts between tenants about who should pay the rent can result in late payments that leave you out of pocket.
A liability clause states that the tenants collectively are responsible for full payment of the rent and not simply for a portion of the rent. Therefore, if one of the roommates refuses to pay their portion for any reason, the other tenants are still responsible for ensuring that the full rent is paid on time.
This liability would also extend to damages. If one roommate causes damage to the property and then disappears, the remaining roommates would still be liable to pay for the damages under this lease clause.
9 – Subletting Clause
It’s up to you whether you allow your tenants to sublet, whether that be subletting a room to an unnamed tenant, subletting the entire property if the original tenant decides to move out early, or subletting intermittently through vacation rental services.
You can prohibit your tenants from subletting without formal approval, for example, to add a roommate or if they intend to move out early. Or you can grant tenants the freedom to sublet based on certain terms and conditions. You can also add requirements such as an additional security deposit for subletters.
As a landlord, you can also include a clause in the rental contract that states the tenant who holds the lease is responsible for any damage that might be caused by their subletters.
10 – Surrender Of Premise Clause
While the general expectation is that tenants will return a property to the landlord in the same condition in which they received it, except for standard wear and tear, this can be hard to enforce without a surrender of premise clause. This clause states the condition the property should be in when vacated.
The lease should specify that the tenants must remove all personal items, dispose of all garbage, thoroughly clean the inside of the property, and leave outside and common areas in a reasonably clean state.
If these requirements aren’t clearly spelled out, it could be challenging to legally deduct from the security deposit charges such as waste disposal and removal of personal property that does not belong to the landlord.
Bonus: Indemnification Of Landlord Clause
The lease should include a clause that the tenant cannot hold the landlord responsible for the loss or damage of property or the injury of any person on the premises. The landlord cannot be held responsible for things that happen on the property that are beyond their control.
However, this clause will not extend to any issues resulting from the property not being maintained in a safe and habitable condition. For example, if an accident resulted from an existing structural integrity problem that the landlord has ignored, the landlord can still be liable.
Lease Clause FAQs
Below are answers to some of the most frequently asked landlord questions about lease agreements.
How can landlords ensure their lease agreements comply with local laws?
Landlords should research local and state housing laws to ensure their lease agreements are compliant. This may involve consulting legal resources, hiring a real estate lawyer, or using updated templates from a reputable property management company.
Can landlords change the terms of a lease agreement after it has been signed?
Generally, the terms of a lease agreement cannot be changed unless both parties agree to the modifications in writing. Any changes should be documented as amendments to the original lease and signed by both the landlord and tenant.
What should landlords do if tenants violate a clause in the lease agreement?
Landlords should follow the procedures outlined in the lease agreement for dealing with violations. This typically involves providing written notice to the tenant detailing the violation and offering a chance to remedy the situation within a specified time frame. If the issue is unresolved, landlords may need to pursue legal eviction, adhering to local laws and regulations.
Protect Yourself With A Good Lease Agreement
If you create an entirely one-sided lease agreement that compromises a tenant’s legal rights, the lease will not be considered legally binding if you face problems later on.
However, ensuring that a few important allowable clauses are included in the rental agreement can go a long way to protecting your interests as a landlord.
Note: RentPrep does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, or accounting advisors.
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When the Fair Housing Act (FHA) comes up, the conversation typically centers around leasing, advertising, or resident interactions. But an often-overlooked aspect is how maintenance services, including unit repairs, are handled. While the FHA doesn’t directly reference “repairs” or “maintenance,” it clearly prohibits discrimination in the delivery of housing-related services. This broader interpretation includes how repair requests are prioritized, addressed, and communicated. Every resident—regardless of their race, national origin, disability, or any other protected category—deserves the same level of service and respect when it comes to their home’s upkeep.
When a Maintenance Delay Becomes a Legal Concern
Delays in repair work are part of property operations. Supply chain disruptions, vendor availability, and resident scheduling can all slow things down. But when a resident starts to believe these delays are linked to their protected status, it moves into fair housing territory. Even if a delay is legitimate, a resident’s perception of unequal treatment can lead to a discrimination complaint. That’s why it’s critical to be consistent and transparent about how repair requests are handled. The moment it seems that one resident’s needs are regularly deprioritized compared to another’s, it opens the door to legal scrutiny under fair housing law.
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How Property Managers Can Stay Compliant
Maintaining fairness and avoiding even the appearance of discrimination means taking a proactive and thoughtful approach. It begins with consistent service. All repair requests should be managed with the same urgency and level of professionalism. Communication plays a big role as well. Residents should be kept informed about delays and next steps. A quick call or email updating them on a backordered part or a rescheduled technician can go a long way in preventing frustration and mistrust.
Documentation is also essential. Keeping clear records of when requests were made, what steps were taken, and any follow-up conversations provide valuable support in the event of a complaint. These records show that decisions were based on operational realities—not on who the resident is. In addition, regular training for office and maintenance staff helps reinforce the importance of equitable treatment and teaches teams how the FHA applies beyond leasing.
When complaints do arise, timely and respectful resolution is key. Addressing concerns quickly and thoughtfully not only resolves the immediate issue but also strengthens your community’s trust in your commitment to fairness and equal treatment.
Building Trust Through Fairness
Although unit repairs may not be mentioned by name in the Fair Housing Act, the principle of non-discrimination applies to every service a housing provider offers—including maintenance. Property managers who remain vigilant, transparent, and fair in how they respond to repair needs are doing more than just protecting their communities—they’re also protecting their teams and their organizations from legal risk. With consistent communication, thoughtful documentation, and a clear understanding of fair housing responsibilities, property professionals can ensure that every resident feels respected, heard, and equally cared for.
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By Alexandra Alvarado
Landlords have the right to choose who they rent to, but that right isn’t absolute. Knowing where the line is between legal discretion and illegal discrimination is critical and sometime even landlords with the best intentions can reject applicants in a way that may lead to a lawsuit.
LEGAL REASONS TO REJECT A RENTAL APPLICATION
Landlords can and should use objective criteria when evaluating potential tenants. Common legal reasons for rejecting an application include:
- Poor Credit History: A credit check reveals a
tenant’s track record with managing debt and
making timely payments. A consistently low
credit score or recent defaults may be grounds
for denial. - Insufficient Income: Most landlords require a
tenant to earn at least two to three times the
monthly rent. If the tenant doesn’t meet that
threshold, the application can be denied. Note,
in some places like California, you must consider
all types of legally verifiable income, including
Section 8 housing vouchers. - Negative Rental History: Past evictions,
frequent late payments, or property damage can
indicate potential problems. References from
previous landlords help paint a picture of the
applicant’s reliability and an eviction and civil
judgments search may reveal if the applicant
was taken to court by a previous landlord. - Criminal Background: While not all criminal
convictions are disqualifying, landlords may
legally reject applicants with convictions related
to violence, property damage, or drug-related
offenses that could impact the safety of the
property or community. If you see a criminal
record on your applicant, be sure to verify it first
with your tenant screening provider. - Incomplete or False Information: A rental
application must be complete and accurate.
Omissions or falsified details can lead to
rejection.
These decisions must be applied uniformly. Creating
a written screening policy can help landlords avoid
accusations of favoritism or bias. Be sure to share your
written criteria before you provide an application, so
they are fully aware of what you need to qualify them.
ILLEGAL REASONS TO REJECT A RENTAL APPLICATION
The Fair Housing Act prohibits discrimination in housing decisions based on:
✓ Race
✓ Color
✓ National origin
✓ Religion
✓ Sex (including gender identity and sexual
orientation)
✓ Familial status (such as having children)
✓ Disability
For example, it is illegal to deny housing to a single mother, a person who uses a wheelchair, or someone because of their ethnic background or religion. Local laws may add more protections, such as age, gender identity, source of income, or marital status.
Even asking questions that hint at a tenant’s membership in a protected class like “Are those your kids?” or “Where are you from originally?” can be problematic. You should only consider the factors that are directly related to their ability to pay rent.
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WHAT ABOUT TENANTS WITH DISABILITIES?
Under the Fair Housing Act, landlords are required to make reasonable accommodations for tenants with disabilities. This may include allowing service or emotional support animals in a no-pet building or permitting the installation of grab bars in a bathroom.
Rejecting a tenant solely because of their disability or because they request an accommodation is illegal unless the request causes undue hardship. Undue hardship refers to an accommodation that would be excessively costly or difficult to implement; to demonstrate this, landlords should obtain quotes from multiple sources to show they made a good-faith effort to accommodate the tenant.
WHAT TENANTS CAN DO AFTER A REJECTION
If their application is rejected, tenants are entitled to ask why. Landlords who deny based on credit must provide an adverse action notice if a third party credit report was used. A custom adverse action letter, or declination letter, is provided with every AAOA tenant screening report, so that you can print or email it and provide it to the applicant. If a tenant suspects discrimination, they can:
✓ File a complaint with the U.S. Department of
Housing and Urban Development (HUD) or your
state’s fair housing agency.
✓ Contact a local tenant rights organization for
assistance.
✓ Seek legal advice from a housing attorney,
sometimes pro bono.
PROTECT YOURSELF WITH CLEAR CRITERIA AND INSURANCE
Landlords should avoid making rental decisions based on gut feelings or assumptions. Instead, adopt a transparent and written screening process. Apply the same standards to every applicant to avoid the appearance of bias. It’s also wise to keep copies of all screening reports,
rental applications, and records of why an application was denied in case questions arise later. Listing specific, legal reasons such as “income below required threshold” or “credit score below minimum criteria” helps demonstrate compliance with fair housing laws. Even when landlords follow fair housing laws carefully, misunderstandings or disputes can still lead to legal claims. That’s why keeping documentation and carrying landlord liability insurance is critical. This type of insurance can help cover legal fees, settlements, and court costs if a tenant or applicant sues for alleged discrimination or wrongful denial. Be sure to review your policy and speak with your insurance provider to ensure you’re adequately covered.
CONCLUSION
Yes, landlords can reject rental applications but not for just any reason. While factors like credit, income, and rental history are fair game, decisions cannot be based on protected characteristics like race, gender, or disability. Landlords who cross the line into discrimination can face serious legal consequences. Tenants who suspect an unfair denial should know their
rights and consider seeking help. Meanwhile, landlords can protect themselves and their properties by using consistent, legal screening criteria and staying up-to date on fair housing laws.
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By Kristi Mergenhagen
Navigating lease signings involves understanding who needs to be on the lease, from minors to adult children, and the implications of each.
Key Takeaways:
- Legal tenants are those of legal age who sign the lease.
- Minors should be listed as occupants, not tenants.
- Adult children (18+) should be on the lease for legal clarity.
- Co-signers add security for landlords and are part of the lease.
- Lease agreements protect both landlords and tenants.
- Special considerations are needed for minors turning 18 during the lease term.
“Does everyone living in an apartment have to be on the lease?” is an often-asked question. The answer is that it depends. Is everyone over 18? Are they minors?
What does the lease say? Lease signing can get confusing with the different variables, including age, state laws, and co-signers.
In this post, we will answer all the commonly asked questions about who signs a lease.
Who Signs An Apartment Lease?
A person who signs a lease is called a lessee. When signing lease agreements, the lessee is typically the tenant. The person who leases or lets a property to another is known as a landlord.
A landlord recently posted in the RentPrep For Landlords Facebook Group about signing leases. This is just one example where a landlord is trying to do the right thing but needs to know what they can and can’t do regarding who is on the lease.
There always seems to be confusion around who should be signing a lease. It’s a good idea for everyone of legal age to sign the lease. We’ll go over just what that means and specific scenarios below.
How Old Do You Have To Be To Sign A Lease?
You can rent an apartment at the age of 18. The only way to lease an apartment earlier would be if the child were to become legally emancipated from their parents. Emancipation of minors is a legal mechanism by which a minor is freed from control by their parents or guardians, and the parents or guardians are freed from any responsibility toward the child.
If a child is legally emancipated, there are still laws at the state level that determine what they can and cannot do. This resource from Cornell.edu has more information on the state level.
As mentioned, minors are not considered tenants and do not have to be on the lease. They can be listed as occupants if state laws allow but cannot sign the lease. If a landlord has a minor sign a lease, it won’t hold up in court as a viable contract since the minor is not considered an adult.
Is A Child Considered A Tenant?
A child is considered anyone under 18 in the United States. A child is not a tenant and is regarded as an occupant until they reach the age of 18.
A child occupant may be listed on the lease as an occupant under 18 years old but should not have to sign anything nor be listed as a tenant.
Children living in the rental should be listed as occupants and should not be signing a lease if they are under 18. During the application process, a landlord should not inquire about children in any way, as familial status is a protected class under the Fair Housing Act.
Do Adult Children Need To Sign A Lease?
Adult children (age 18 or older) should be listed on the lease, and they should sign the lease as well. If an adult child does not sign the lease, there are risks for the landlord and the adult child.
he risk for the landlord is that there is one less responsible party on the lease. The lease rules wouldn’t bind the adult child, making enforcing those rules more difficult.
The risk for the adult child is that they’re considered a guest instead of a tenant. If problems arise, removing the adult child from the premises will be much easier.
Of course, landlords need to treat adult children of existing tenants as adults legally, but adjust their expectations accordingly to reflect the reality of the situation. While these new adults should indeed be listed on the lease agreement, most new adults will only know a little about leases, rental agreements, and more, and they will trust their parents and sign where they are told.
However, having an adult child sign the lease agreement or an addendum can help landlords and parents keep adult children in line and responsible for their behavior and their guests.
What If A Minor Turns 18 While A Family Is Renting?
A standard lease tends to be a 12-month lease. If an occupant turns 18 during the lease, it’s typical to address the situation when it is time for a lease renewal.
You can have the 18-year-old sign the lease as an adult tenant at lease renewal. This is important because you’ll want to update and run background checks yearly on your tenants as life circumstances may change. A landlord should know if the 18-year-old tenant has a record or is considered a high-risk tenant.
You can create a co-tenant addendum when the child turns 18.
Co-Tenant Addendums: What You Need To Know
A co-tenant addendum adds the child as an adult tenant, like a roommate. It requires a full background check for the new addition, copies of identifying documents, and a written statement that the new adult will abide by all lease agreement terms, including financial terms.
When To Add A Co-Tenant Lease Addendum
A co-tenant lease addendum is the best way to handle when a tenant’s child turns 18. The addendum should cover the period from the child’s birthday to the renewal of the existing lease agreement.
When landlords see that the minor child is about to turn 18, it’s appropriate to send the tenant a written notice that they and their child will need to complete some new paperwork for a co-tenant lease addendum within two to three weeks after that child’s birthday.
Setting up the lease addendum with the tenant and their adult child is an excellent way to ensure everyone is on the same page regarding responsibility for rent, security deposits, damage, and following the rules.
Why Should You Add A Co-Tenant Lease Addendum?
A co-tenant lease addendum means that if the original tenant fails to pay rent, the landlord can seek compensation from any other adults named in the lease agreement. It also means that if the landlord seeks out the costs to repair damages to the rental property, they can collect from the new adult.
The addendum should also be clear that the co-tenant didn’t contribute to the original security deposit and, therefore, has no rights to deposit refunds—only the original tenant can receive funds back. There should be no language about whether or not the new adult should pay rent–that’s between the tenants, as long as the landlord gets the total amount on time and every month.
What Are Co-Tenant Rights?
Once a young adult is added as a co-tenant, they cannot be forced out of the rental property by any other means except a legal eviction process. A young adult tenant cannot be evicted for just any reason, either. Like every other tenant, a landlord may only evict them based on a breach of the lease agreement. Remember, a landlord cannot just evict one tenant and not the others on a lease agreement–it’s all adults or none of them.
The co-tenant lease addendum should last until the lease agreement expires and the current tenants want to renew. When the lease is ready to renew, the landlord can decide whether to allow just the parents to reapply or include the young adult in the renewal process. Landlords will have to determine what standards to set for adult children. In other words, if the parents are good tenants and continue to meet the criteria, but the adult child has no credit history and a weak job history, the landlord may well allow things to continue as they are and lower their application standards for the adult child, given the special circumstances.
Of course, landlords can go the other way and stick strictly to their criteria, which an adult child won’t meet. In that event, the parents must decide whether to sign the lease without the adult child or go elsewhere. As with most cases requiring landlord decisions, it often depends on the parents, the adult child themselves, and many other factors.
Beware Of Co-Tenant Local & State Laws
Landlords should beware, however, because, in some municipalities, such as San Francisco, laws protect tenants who live in a rental property as minors and then choose to stay after they come of age. As an original lawful occupant, the new adult may have some rights, so landlords should know whether this condition applies in their city.
The Reality Of Collecting Rent From Adult Children
Landlords must remember that although the new adult is technically legally as responsible as the original tenant, in most cases, it will be nearly impossible to collect rent from the tenant’s child. Many landlords are okay with adding the new adult to the lease agreement but don’t hold out hope of collecting from them if anything goes wrong because they realize the tenant’s child’s improbability of providing any financial contribution to the situation. However, landlords are well within their rights to try.
All in all, landlords should handle the adult child of a current tenant to create the best legal coverage for themselves and their property, but understand that the realities of enforcing or collecting will be somewhat different. While grown children should be treated on paper as the adults they now are, they are, in many ways, still children. Of course, what is done on paper protects the landlord and the rental property. What the landlord does if and when it comes to collections is something that each landlord must decide for themselves.
Legally, the landlord can require all the same things of the adult child as any other adult on the lease, but as a realistic landlord, it is usually the right thing to do to take a specialized approach to a special situation.
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FAQs On Who Signs The Lease
Signing a rental contract can confuse both a landlord’s and tenant’s sides of the house. Whether you’re a tenant and have someone live with you, not on the lease or a landlord who is not sure when the right time is to sign a lease, RentPrep has you covered. Here are a few of the most commonly asked questions when it comes to everyone in an apartment has to be on the lease.
Who is a Lease Designed to Protect?
Sometimes, a tenant may view a lease only as landlord protection, but that is not the case. The lease protects the tenant as well.
If issues arise, the lease is the contract that will determine how those issues are handled.
The lease should address whether or not every occupant needs to be on the lease. Every person responsible for paying rent must sign the lease, and it’s a good idea to have any occupant considered to be of adult age sign the lease as well.
If a tenant sneaks someone into the rental, they create additional liability for themselves, and that guest is not afforded the same rights as the tenants responsible for the lease.
Who Signs the Lease First, the Tenant Or the Landlord?
So, what’s the standard practice for who signs a lease first? Often, we’ll see that a consumer is usually the one signing any legally bound contract first. In a rental agreement, the tenant often signs the contract first since the tenant is considered the consumer.
Do All Tenants Need To Sign The Lease?
If they’re considered a tenant, the answer is yes; they should sign the lease. A tenant is of legal age, whereas an occupant (such as a minor) may be listed on the lease agreement but does not sign the lease.
Can Someone Live With You Without Being On The Lease?
Not everyone living in an apartment must be on the lease. Legal tenants, typically those over 18, must sign. Minors are listed as occupants and do not sign. Adult children and co-signers should also be on the lease for legal and financial clarity.
Any adult roommate is strongly recommended to be a signed party on the lease. A tenant with a roommate who is not on the lease creates unnecessary liability for themselves.
For example, if the roommate causes $1,000 worth of damage, the landlord will charge the tenant for those damages. The people who sign the lease are responsible for rent, damages, and other items spelled out.
A renter having a long-term guest at the rental, such as a girlfriend who has moved in and is not a party on the lease, only increases their liability.
Can Someone Be on the Lease and Not Live There?
Sometimes, an individual named on the lease may not reside in the property. This can occur in situations like parents leasing an apartment for their college-going child or someone renting a property for work-related purposes but residing elsewhere. Landlords should be aware of these situations and ensure their lease agreements are structured to address the responsibilities and expectations of non-resident leaseholders.
Renting an apartment for a family member is a common scenario, particularly for parents renting for college students or elderly family members. In these cases, the person renting the apartment should understand that they are legally responsible for all aspects of the lease, even if they are not the primary occupant. Landlords should ensure that their lease agreements and tenant screening processes accommodate such arrangements, clarifying the responsibilities of the person renting on behalf of the family member.
Do Co-Signers Have To Be On The Lease Agreement?
As the name suggests, a co-signer should sign the lease as an added level of security for the landlord.
A co-signer is typical when the renter has no rental or credit history (common amongst college students). The co-signer is legally responsible for paying for any rent or damages from the tenant.
This added insurance allows a younger renter to find housing without the landlordfeeling exposed to a risky tenant. The co-signer must sign the lease for this reason.
Can A Leaseholder Kick Out An Occupant?
If the occupant is legally considered an adult and is not a signed party to the lease, then the leaseholder can kick out (or evict) the authorized occupant.
Don’t Overcomplicate Lease Signings
It’s important to remember that not every lease is perfect. Often, a landlord might forget that a tenant has a child turning 18 in the next few months or fail to check the rental property for unwanted roommates who are not on the lease. Whatever it is, addressing the problem once you find it – without overcomplicating things – is essential.
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By Noel Krasomil
If you’re asking, “Can a landlord change a lease after it has been signed?” we’re glad you stopped by to find out. Lease changes are easy to botch, and if you don’t follow the proper protocols, you could breach your contract, invite legal issues, or strain the relationship with your tenant.
In this guide, we’ll break down the differences between a lease addendum and an amendment, when to void and restart agreements, and best practices for modifying contracts. We’ll also guide you through the process of legally modifying an active lease to ensure a seamless transition, free from confusion and compliance issues.
Keep reading to ensure that every lease change you make is well-informed, legal, and designed to protect your rental property.
Signed Leases Are Legally Binding for Both Parties
Every landlord should understand this up front:
Once you’ve signed a lease agreement with a tenant, you’re legally required to honor its terms for the entire duration of the contract. Both parties must agree, in writing, to any proposed changes; if either side refuses, the lease will remain unchanged.
If both parties agree, however, you can work together to move forward and modify your agreement. There are a few ways to do it. You can add an addendum, draft an amendment, or create a new lease altogether. In rare cases, changes to legislation or court orders may necessitate changes.
The best approach for you and your tenants depends on the nature of the change and when you hope to make it.
Under what circumstances can a landlord update an active lease agreement?
Landlords can’t simply change leases on a whim, and tenants can’t either. Lease modifications are only allowable in specific situations, including:
During lease renewal and extension
The most common time to update lease terms is during a renewal. Once the original lease ends, landlords can add new terms or clauses before entering into a new agreement with the tenant. Simply inform the tenant of the changes, send the revised lease, and have both parties sign it.
When the Landlord and Tenant Both Agree to It
Landlords and tenants most commonly change an active lease after discussing the proposed terms and agreeing to them. If both parties wish to proceed with the change, they can use an addendum, an amendment, or draft an entirely new lease to reflect the update.
When Local or Regulatory Changes Take Effect
Sometimes, albeit infrequently, updates to local laws require landlords to update a lease mid-term. These legal changes often involve landlord disclosures, safety updates, or tweaks to rent control ordinances. In most cases, however, the new law automatically overrides any conflicting lease terms, so updating the agreement isn’t necessary per se.
But some changes (particularly those related to habitability or required disclosures) may require landlords to update their rental contracts mid-term.
Emergencies or Court-Ordered Modifications
In rare circumstances, emergencies or court orders can override lease terms. For example, a judge may order a lease modification during a legal dispute, or a natural disaster may call for temporary changes to occupancy terms, access regulations, or tenant responsibilities.
Changing Active Leases: You Have Options
Mid-lease changes aren’t one-size-fits-all. Your best approach depends on when you need the change to take effect, the existing agreement itself, and the extent of the update in question.
Option 1: Add a Lease Addendum
A lease addendum is an additional document that supports an existing lease by adding new terms without altering the original contract.
Landlords typically use addendums when they need to make mid-lease updates, like adding a pet, clarifying utility responsibilities, or updating parking terms. When handled correctly, lease addendums keep the rental contract current and valid, eliminating the need to start from scratch.
To add an addendum to a lease, use property management software to draft, send, and sign the document digitally.
Option 2: Make an Amendment to the Lease
A lease amendment modifies the existing terms of an original lease, such as adjusting the rent amount or changing the move-out date. While amendments can work in some cases, we don’t recommend them.
Amendments can easily create confusion if they’re not worded clearly or signed correctly by both parties. Unless you’re fixing a minor mistake, an addendum is typically the more straightforward, cleaner way to update your lease without revising its original terms.
Option 3: Void the Current Lease and Create a New One
Canceling an existing lease agreement and starting over is often easier than adding multiple new clauses or tediously editing existing terms. Doing so eliminates any possibility of confusion, locks in updated terms, and allows both parties to recommit to a fresh contract.
To void a lease and start a new one, both parties should first agree, in writing, to nullify the old agreement and then sign a new rental contract with updated terms. Going this route is more painstaking than adding an addendum, but less messy than making numerous amendments.
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How to Change an Existing Lease (Step-by-Step Guide)
Follow these five steps to update your lease without inviting tenant disputes or running into compliance issues:
Step 1: Review Current Lease Terms
Before modifying your lease, take time to comb through the existing rental contract and confirm that the change you’re considering is actually necessary (and legally allowed). Next, identify the clauses you want to change, spell out the new terms, and outline how the proposed changes will influence the rest of the agreement.
Step 2: Discuss the Potential Change With Your Tenant
As we mentioned earlier, your tenant almost always must agree to any proposed changes before you can put them into effect. Unless a legal requirement forces the update, both parties must sign off on any modifications before they take effect.
If the tenant agrees to the proposed changes, move forward by preparing the necessary paperwork. If they disagree, wait until the contract term ends and send them a revised agreement with updated terms as part of a proposed lease renewal.
Step 3: Decide Between an Addendum, Amendment, or a New Lease
After you’ve agreed to a lease change, chat with your tenant and determine how it will take place: through an addendum, amendment, or a new lease altogether. Typically, we recommend an addendum, since it allows you to add new terms to the existing lease without modifying the original contract.
A new lease might be a good option if the current agreement is outdated, expires soon, or requires several detailed changes. Amendments can be effective, but they’re often more challenging to track and are more likely to cause confusion.
Step 4: Complete, Sign, and Date the Lease Change
Once you’ve settled on how to update the lease, put the change in writing, sign it, and date it (along with the tenant) to make it official. E-signatures are legally valid and can simplify the process if you prefer to keep things fully digital.
Using an addendum? Follow our step-by-step guide. Starting fresh? Make sure to void the old lease before signing a new one.
Step 5: Provide Copies to All Parties
Once the changes are official, distribute copies to both parties and store them securely. TurboTenant makes this simple by keeping all essential documents organized and accessible in your account.
Both you and your tenant will be able to access the updated lease documents at any time, as long as your accounts remain active.
Best Practices for Changing Active Lease Agreements
Before you finalize anything, follow these best practices to protect yourself and maintain a smooth rental process:
Always Get Tenant Consent in Writing
Verbal agreements are harder to enforce and often lead to misunderstandings. When a tenant agrees on paper, they’re far less likely to back out later. A reliable paper trail, complete with signatures, will help move things forward and protect both parties.
Opt for an Addendum (Try to Avoid New Leases or Amendments)
Addendums are the easiest way to modify a lease without having to start over from scratch. They require the least effort, preserve the original lease, and can be generated and signed quickly with property management software.
When possible, avoid amending or replacing the lease entirely, as these options are more complicated and time-consuming.
Be Specific and Use Clear Writing
Always use clear and direct language when updating a lease. Avoid using vague terms or open-ended phrases that leave room for interpretation. Both parties should understand, in no uncertain terms, what is changing and how the modifications will impact the original agreement.
Double-Check Changes With Current Laws
Before changing a lease, ensure the update complies with both federal and state landlord-tenant laws. Adding illegal terms could void the lease and expose you to penalties, legal disputes, or enforcement issues in the future. Just because you and a tenant have signed a lease, doesn’t mean all its terms are automatically valid.
Securely Store Records of All Changes
Since addendums are separate from the original lease, store them just as securely as you would store the main contract. Do the same for lease amendments and newly signed agreements by saving each document in an organized, encrypted interface.
Keeping your records in one place ensures that you can quickly reference them if questions arise or you need to provide legal documentation.
Change Your Leases (Legally) with TurboTenant
Changing leases can be a tricky process, especially if you attempt to go the DIY route. Instead, use TurboTenant to create addendums, draft new leases, collect signatures, and store everything securely, all in your centralized landlord dashboard.
In addition to simplifying lease changes, TurboTenant helps over 800,000 landlords market properties, send rental applications, screen tenants, collect rent, and communicate with tenants (for free).
Sign up for a free TurboTenant account today to streamline your lease changes and automate all other facets of your rental business.
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Provided by Property Manager Insider
In 2025, multifamily condominium communities across the United States are focusing on amenities that keep residents happy and encourage them to renew their leases. Modern condo dwellers – from Gen Z renters to Baby Boomer homeowners – expect more than just a roof over their heads. They seek features that enhance security, convenience, community life, and sustainability. In fact, 75% of tenants prioritize amenities when deciding to rent or renew their lease. Properties that deliver the right amenities can see significantly higher renewal rates – some communities report a 15–20% increase in lease renewals after adding modern amenities. This article explores the top amenity categories driving lease renewals in 2025 condominiums, highlighting emerging trends and noting where different age groups place the most value.
Security Features Enhancing Peace of Mind
One of the most important factors in resident retention is safety – people need to feel secure at home. Condo communities are investing in robust security features that give residents peace of mind. Gated entrances, secure building access, and surveillance cameras are increasingly standard. In many urban condos, controlled access systems and keyless smart locks top the priority list for renters. These technologies let residents use smartphone apps or key fobs to securely enter buildings and their units, and to verify visitors. Good lighting in parking areas and hallways, along with on-site security staff or patrols in larger complexes, also help residents feel safe.
Security features tend to resonate with all age groups. Baby Boomers especially appreciate traditional safety measures like gated entries and on-site security guards, as personal safety is a top concern for many older residents. Younger renters also value security, often preferring tech-enabled solutions like app-based video intercoms or smart doorbells that fit their digital lifestyles. Importantly, residents are often willing to overlook minor issues if they know they “can go home to a safe space each night,” making security a must-have amenity for lease renewals. Communities that invest in safety first see stronger loyalty from tenants.
Smart Home Technology and Automation
Smart home technology has moved from a luxury to an expectation in 2025’s condo market. Renters and owners alike enjoy the convenience of smart thermostats, smart lighting, and app-controlled door locks. These features not only make life easier but can also save energy and bolster security. According to industry research, technology amenities are very popular, ranking in the top tier of renter preferences alongside security features. In practice, this means many condo units now come equipped with programmable or voice-activated thermostats, smart lighting systems, and Wi-Fi enabled appliances that can be monitored remotely.
Younger residents are particularly drawn to tech-enabled living. They’ve “grown up digital,” so they expect seamless connectivity – for example, managed property-wide Wi-Fi, smart entry systems, and mobile apps for everything from rent payments to maintenance requests. A survey of Gen Z renters found they prioritize features like smart locks and thermostats as part of a modern, tech-driven lifestyle. However, older generations appreciate smart home tech as well when it offers clear benefits. Baby Boomers might value smart leak detectors (to prevent water damage) or simple remote controls that make their homes easier to manage. Overall, integrating smart home technology has become a key retention strategy – it adds convenience and “cool factor” to condos without much extra effort for residents. By enhancing the resident experience through technology, condo communities appeal to tech-savvy renters and show they are keeping up with the times.
Community Features and Shared Spaces
Condominium living isn’t just about private units – it’s also about the community spaces and amenities that residents share. In 2025, community and social amenities play a huge role in satisfaction across all demographics. Many residents today want a “live-work-play” environment where they can exercise, socialize, or even work from home without leaving the property. Key community features driving lease renewals include:
- Fitness Centers and Wellness Facilities: An on-site gym or fitness room is often expected. Modern condo gyms offer a range of wellness options – from traditional exercise machines to yoga studios and even virtual fitness classes. These amenities boost retention: properties with fitness centers see a 6–8% higher tenant retention, especially among younger renters who value convenient workouts. In some regions, pools and outdoor fitness areas are considered non-negotiable as well. For example, many Sun Belt communities (e.g. in Florida, Arizona) find that residents insist on having a pool available for relaxation and exercise.
- Outdoor Spaces and Recreation: Access to open outdoor space is increasingly important. Residents want to enjoy fresh air and nature at home. Condos that provide green courtyards, rooftop gardens, walking paths, or barbecue areas make it easier for people to relax or socialize outdoors. In fact, after years of indoor work, many people want to get their taste of fresh air during non-working hours, and well-designed outdoor lounges or patios can make all the difference in resident satisfaction. Private outdoor spaces like balconies or patios attached to units are also highly prized – in California, for instance, renters say private balconies are one of their favorite features. Condominium communities that offer appealing outdoor spaces – from rooftop terraces to peaceful courtyards – give residents an extra reason to stay.
- Coworking Spaces and Business Centers: With remote and hybrid work common in 2025, many condo properties now feature coworking lounges, business centers, or reservable private offices. These facilities let residents work from home effectively by providing quiet workstations, conference rooms, and strong internet connectivity. Such spaces are especially valued in regions with many remote workers – for example, renters in the Midwest cited availability of coworking spaces as a deciding factor in their housing choices. Millennials and Gen Z (who make up a large share of the remote workforce) are keen on having a modern “office” environment at home.
Another community aspect that cannot be overlooked is pet-friendly amenities. Over half of American households include a dog or cat in 2025, so many residents consider their “furry family members” when choosing where to live. Condo properties that provide pet amenities – such as dog parks, pet run areas, and pet washing stations – have an edge in retention. Pet owners feel more welcome and are 18% more likely to renew their lease in communities with pet-friendly facilities. Millennials in particular have high pet ownership rates and often specifically seek out buildings that accommodate pets. By catering to this need (for example, with on-site dog play areas or pet concierge services), condos can secure loyalty from this demographic of renters. Even for residents without pets, a pet-friendly policy signals a warm, home-like atmosphere that many appreciate.
Convenience-Based Services and Perks
Modern residents place a high premium on convenience. Busy lifestyles mean people value any service that saves time or effort. In 2025, top condominium communities are delivering hotel-like services and digital conveniences that make day-to-day living easier. These offerings can significantly influence a resident’s decision to stay. For instance, one industry survey found that the amenities and services available were one of the three biggest factors in how renters judged the value of their current home (the other factors being management quality and property condition). Below are key convenience-based amenities driving renewals:
- Package Management: With the explosion of online shopping, secure package handling has become essential. Many condos have installed package lockers or dedicated mailrooms where deliveries can be safely stored. Others employ package concierge services to accept and hold parcels. This addresses a real pain point – residents don’t want their packages lost or sitting out where they could be stolen. Communities with smart package locker systems report much higher resident satisfaction (one analysis noted a 25% boost in tenant satisfaction when package lockers are available). As one CEO observed about young renters, “They also want secure and easily accessible package solutions” for all their Amazon orders and deliveries. All generations appreciate this amenity, though it’s especially critical for working professionals who can’t be home to receive daytime deliveries.
- On-Demand and Concierge Services: Top-tier condo buildings now offer services that make daily life feel a bit more luxurious. This can include dry cleaning pickup and delivery, house cleaning services, dog walking, or grocery delivery coordination. Some properties partner with concierge apps or third-party providers so that residents can easily book a cleaning or handyman visit. These were once seen as extras, but now services like on-demand cleaning, handyman help, pet care, and package handling are considered essentials rather than luxuriesamenify.com. Such conveniences are highly valued by busy Millennials and Gen Xers juggling work and family – they’re willing to stay (and even pay a bit more) for a community that helps simplify their routines.
- Digital Resident Portals and Payments: In 2025, going digital is a major convenience factor. Residents love having a mobile app or online portal for their community where they can pay rent, request maintenance, and get updates instantly. The idea of writing checks or standing in line at an office is increasingly outdated, especially for Gen Z and Millennials. Providing a seamless, tech-driven process for handling finances and communication is now a baseline expectation. In fact, a recent national renter study showed 97% of tenants desire automated digital services for easier access to rental functions. Offering digital lease signing, 24/7 chat support, and text/email alerts about community news makes residents feel looked-after and in control – factors that strongly support lease renewals.
- Move-In and Transition Assistance: Communities are also recognizing that the move-in process can set the tone for a resident’s entire lease. Moving is stressful – nearly 90% of renters say moving into a new home is extremely difficult. To ease this, move-in support services are emerging as a sought-after perk. In one survey, 97% of renters said they prefer landlords or managers who offer help finding movers or coordinating the move-in. Some condo buildings now have partnerships with moving companies or provide new residents with a “move-in concierge” to help with tasks like elevator reservations, utility setup, or even furniture assembly. By smoothing out the move-in and offering ongoing support, communities send a message that they care – which translates into residents feeling happier and staying longer.
- Flexible and Customer-Focused Policies: Convenience extends to policies and programs that make living in a condo community more financially manageable. For example, flexible rent payment options, such as the ability to pay rent in two installments per month instead of one, are in demand. A national survey found 93% of renters would be happier if they could choose biweekly or weekly payment schedules rather than a rigid monthly schedule. Additionally, some property managers are introducing resident loyalty programs – nearly 98% of tenants liked the idea of loyalty rewards to help with the cost of living. These might include small rent credits, discounts at local businesses, or referral bonuses for renewing. While these are not physical amenities, they are convenience-oriented perks that increase residents’ overall satisfaction and sense of value. Renewal incentives like these make residents feel appreciated, which can tip the scales in favor of staying.
In summary, convenience-based amenities – from secure package lockers to digital apps and flexible services – directly boost resident happiness. They cater to the modern expectation that “there’s a service for that,” reducing daily hassles. Communities that stay ahead in offering convenient services are rewarded with higher renewal intentions, as renters hesitate to give up the comfort and ease they’ve grown accustomed to.
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Sustainability and Green Living Options
Across age groups, Americans have become more conscious of sustainability and healthy living. This is reflected in the rising demand for eco-friendly amenities in condo properties. Interestingly, 4 of the top 10 most-preferred apartment features in 2024 were related to sustainability, according to a nationwide renter survey. Amenities that were once afterthoughts – like energy-saving appliances or recycling programs – can now be deal-makers for residents deciding whether to renew.
Key sustainability-focused amenities include:
- Energy-Efficient Appliances & Systems: Modern condo units boast high-efficiency appliances, such as HE washers/dryers, ENERGY STAR refrigerators, smart HVAC systems, that reduce utility bills and environmental impact. In Greystar’s 2024 survey of 90,000 renters, high-efficiency appliances ranked among the top five most-valued amenities nationally. About 83% of renters expressed interest in efficient appliances, reflecting a broad desire to save energy and money. Smart thermostats also play a role here – they cut down energy waste and let residents customize their climate settings. Baby Boomers and Gen X renters often appreciate the cost savings from these features, while Gen Z and Millennials may be equally drawn to their eco-friendliness.
- Enhanced Air Quality and Ventilation: Health and sustainability go hand in hand. Features like fresh air ventilation systems and premium air filters have become highly desirable. Nationally, 86% of renters showed interest in enhanced fresh air ventilation, and 17% said they would refuse to rent an apartment lacking that feature. In tech-heavy regions (e.g. Seattle or San Francisco), renters are especially mindful of air quality and wellness-focused amenities, a trend amplified by recent wildfire smoke and pandemic concerns. Condo buildings are responding with better HVAC systems, indoor air purifiers, and non-toxic building materials – all of which signal a healthy living environment. Such improvements appeal across ages, though younger generations often voice the strongest concerns about wellness and environmental quality in housing.
- Recycling, Composting, and Waste Reduction: Eco-conscious residents notice if a community makes it easy to recycle and reduce waste. Many condos provide recycling centers on-site, composting programs, and water bottle refill stations to cut down on single-use plastics. These amenities demonstrate a property’s commitment to sustainability. They can particularly influence Millennials and Gen Z, who on average express greater concern for environmental responsibility in their living choices. However, older residents appreciate these efforts too, as they contribute to a clean, efficient community.
- Electric Vehicle (EV) Charging Stations: With electric cars growing in popularity, EV charging stations have gone from rarity to a hot new amenity. In fact, the amenity with the greatest increase in interest in recent years is EV charging, according to multifamily housing research. As more residents drive electric vehicles, having convenient charging options at home is a huge plus. Offering EV charging can be a key retention tool, as eco-minded renters will stick with a community that supports their transportation needs. Some condos even install solar panels or use renewable energy to power these stations, doubling down on green credibility.
- Green Building Certifications and Design: Finally, some newer condominium properties are built to green building standards, like LEED certification. These buildings may feature solar panels, rainwater harvesting systems, efficient insulation, and other cutting-edge sustainable design elements. Renters and owners who care about climate impact find pride in living in a community with a smaller carbon footprint. Gen Z renters, in particular, are drawn to apartments with green certifications and energy-efficient features, viewing them as aligned with their values. Sustainable design can also improve comfort – for example, better insulation means quieter and more temperature-stable apartments. By investing in sustainability, condo communities not only help the planet but also create desirable living conditions that residents want to keep enjoying year after year.
Overall, sustainability amenities have moved into the mainstream. From younger generations passionate about environmental issues to older generations looking to save on bills and live in healthy spaces, everyone finds value in green features. Communities that demonstrate a commitment to sustainability – through tangible amenities like those above – foster goodwill and loyalty among residents. This translates into higher renewal rates, as people are reluctant to leave a home that aligns with their comfort, health, and values.
A Holistic Approach to Resident Satisfaction
In 2025, successful multifamily condominium communities take a holistic approach to amenities, recognizing that resident needs are diverse and ever-evolving. Security, smart technology, community spaces, convenience services, and sustainability options all work together to create an environment where people feel happy and at home. When residents feel that their community offers a safe, convenient, and enriching lifestyle, they are far more likely to stay. Industry data underscores this point: amenities and services aren’t just add-ons, but core drivers of lease renewals.
Crucially, different demographics may gravitate toward different amenities – a retiree might be most impressed by secure access and quiet gardens, while a young professional might prioritize high-speed internet, a co-working lounge, and app-based services. Millennials and Gen Z often look for tech integration, social opportunities, and eco-friendly features, whereas Baby Boomers may focus on safety, comfort, and convenience. The best condo properties balance these needs by providing a range of amenities that add value for everyone. As one property management expert put it, the key is having “thoughtful spaces, remembering that the community will house people from all walks of life.”
By listening to resident feedback and staying ahead of trends, condo communities can continue to meet or exceed expectations. This pays off not only in happier residents, but in tangible results like higher renewal percentages and lower turnover costs. In summary, amenities that improve quality of life – from a secure front door to a solar panel on the roof – are driving lease renewals in 2025. Communities that invest in these areas are rewarded with loyal residents who are proud to call their condominium home.
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