How to Prepare a Lease Agreement for Tenants?

A lease agreement is an essential legal document that outlines the terms and conditions for a specific occupation period of a landlord’s property and occupied by a tenant. The lease agreement aims to define the responsibilities of a tenant and the landlord.

The agreement will contain detailed information about the property, rent exchange for the access of the rental property, and the term of the contract. Once the agreement is signed, both parties have a duty to adhere to, and if anything goes wrong, the contract can be used as legal justification to determine who is in the right.

A strong lease agreement cements the relationship between the tenant and the owner and provides a firm grounding for a successful tenancy. You can check CocoSign for online templates and learn how to sign a lease agreement electronically. Or follow our guide below to learn about writing a great lease agreement.

Essential Tips Before You Write a Lease Agreement

A lease agreement can be as basic or as complex as you like, and the level of details varies according to the individual contract. However, consider the following tips as you work on your lease.

  • Keep your language specific and simple with less legal jargon
  • Understand your local and state laws and follow how they record, format, or write leases if applicable.
  • Divide the document into sections with headings and subheadings for clear reading and easy understanding.
  • Refer to sample clauses and leases for guidance on how to word things.
  • Use your first lease as the base lease and modify it to be specific to a particular property or tenant.

A Step-by-Step Guide for Creating A Basic Lease Agreement

Before you create a lease agreement, it’s always helpful to have all the information you need with you. If you’re ready to write your agreement, simply follow these steps:

Title and Format 

You should first set up an outline for the document. Give it a title, for example, “Lease Agreement “and property name. The title should be large and centered on the top of the first page. Then you can proceed to section the entire documents into headers and subheaders. This method makes your document logically organized and easy to read. For more details on the correct format, check out CocoSign online lease agreement templates.

Identify Landlord and Tenants

Every lease agreement must identify the parties involved in the contract. Note down the names and contact details of both tenant and landlord. The address of each party should also be included.

Identify Property

You are required to provide the full information that identifies the property so that there’s no confusion. Some of the details include:

  • Name of the property
  • Property address
  • A brief description of the property
  • Definition of what areas are included as the “property “itself
  • Zoning type

Rental Term

This section details the date the lease agreement is valid. You will want to include the exact date: day, month, and year, the lease begins, and the exact date it ends—for instance, 12 months commencing on 20/02/2021.

Rent Amount, Late Fees, and Applicable Penalties

Detail the rental cost and what day it is due. It’s essential to include the full amount of rent due throughout the entire lease and then break it down by the amount due per month. Additionally, detail the accepted forms of payment and where the rent fees should be sent.

What are the fees for paying late rent? Are there any penalties for late payments? All this information should be included in this section.


A security deposit is a lump sum of money held by the landlord as collateral for any potential damage to the property. In this clause, you should include:

  • Amount of the security deposit collected.
  • Date of the collection
  • Name and Address of the Bank or Institution where the deposit is held
  • Interest Rate
  • Reasons that can result to deposit deductions
  • Procedures for returning the security deposit


State who will be responsible for paying utility bills such as gas, electricity, and water. If any utilities are to be split between units that share utilities, include detailed information about that arrangement here.

Tenants’ Rights and Responsibilities

Tenants have the responsibilities to take care of the property as much as they have the right to privacy and use the home as they please. All limitations on what a tenant can do on the property should be listed here:

Include information about keeping pets, having visitors stay, any illegal activity not allowed in the property, subletting, carrying out repairs, maintaining property clean, etc.

Landlord Rights and Responsibilities 

As the Landlord of the property, you have several responsibilities. It’s crucial to include a reiteration of those duties to help the tenant understand. Firstly, the landlord is obligated to maintain the property in a livable condition. This means you have to keep specific timeframes to repair reported damages.

Lease Termination and Remedy

Provide valid circumstances that can result in the lease’s termination before the end of the contract term. Important information includes when they can terminate, penalties to be enacted, fees to be levied, and alternative remedies.

Also, define reasons as a landlord that can terminate a lease agreement. They include:

  • Consistent late rent payment
  • Breaking the law of the property
  • Intention to sell the house
  • Intention to occupy the property
  • Nonpayment of rent
  • Extreme property damage

Create A Space for Signatures

A lease agreement must be signed to be legal. All individuals mentioned within the contract should sign and print their names. The signatures acknowledge that the landlord and the tenant agree to follow the terms of the lease. You can visit CocoSign, where you can customize your lease agreement, download, and send it to the tenant for e-signing.


Having a lease agreement helps simplify the leasing process, prevent confusion, and ensure a harmonious relationship between tenant and landlord. If you’re looking to create a lease agreement, this guide will hopefully set you off on the right track.

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