AI lease agreement generator

Lease agreements explained

• What is a lease agreement?

  A lease agreement is a legally binding contract between a property owner (landlord) and a tenant that outlines the terms and conditions for renting a property. Whether you’re leasing a residential or commercial property, or even equipment, a lease agreement is the foundation for any rental relationship.
  
  A lease agreement works like your rental relationship’s rulebook. It protects both parties by clearly spelling out everyone’s rights and responsibilities.
  
  While lease agreements can vary significantly based on property type and local laws, having a clear, professionally written lease is essential for protecting your interests and avoiding potential disputes in the future.
  
  Whether you’re a property manager handling multiple units or a small business owner leasing your first commercial space, this document will be your go-to reference for all rental-related matters.

  New to renting our property? See our comprehensive guide to lease agreements for first-time landlords.

• Is a lease agreement and a rental agreement the same thing?

  They’re often used interchangeably, but lease agreements and rental agreements are technically different documents. The main difference is the duration of the term.
  
  Lease agreements typically cover longer fixed terms, usually 6 months to a year or more. Once signed, the terms — including rent amount, policies, and duration — remain locked in until the lease period ends.
  
  Rental agreements typically operate on a shorter, more flexible basis — commonly on a month-to-month basis. These agreements automatically renew at the end of each period (usually monthly) unless either party provides notice to terminate. Landlords can modify terms, such as increasing rent, with proper notice at the end of each period.
  
  Both documents serve essential legal functions in protecting the rights and clarifying the responsibilities of both landlords and tenants.

• Can I make my own lease agreement?

  Sure. It’s certainly possible to create your own lease agreement and lots of landlords and property managers do just that. However, it is essential to consider certain factors when drafting your own lease agreement.
  
  To begin, it is essential to be clear about property rules and requirements. Are pets allowed, and if so, are there any exceptions? Can tenants sublet space in the property? It’s important to be clear in the lease agreement to avoid disputes further down the line.
  
  Remember also that legal requirements vary from state to state and country to country. Do your research and make sure your agreement complies with local laws relating to security deposits, disclosures and tenant rights.
  
  Our AI-powered lease agreement generator can help you draft your own lease agreement, tailored to your needs. To get started, just describe what kind of lease agreement you need and work with our AI assistant to iterate and refine by adding clauses, clarifying terms, and more.
  
  Prefer to start with a template? We have a broad range of free lease agreement templates you can use and customize as needed.

• What should a lease agreement contain?

  The exact details can vary, but each lease agreement has a number of core elements:
  
  Property details: The foundation of any lease agreement starts with a clear description of the property being rented. This includes the property address and a detailed description, including any specific units or room numbers. Your agreement should also outline which amenities are included, such as parking spaces, storage units, or access to shared facilities like gyms or community rooms. Being specific here helps prevent future misunderstandings about what’s included in the rental.
  
  Terms and financial information: Start with the length of the lease period, clearly stating start and end dates. Specify the rent amount, due date, and acceptable payment methods. Include details about the security deposit, including the amount, conditions for its return, and any deductions that might apply. Don’t forget to cover which utilities and additional fees the tenant is responsible for, and which the landlord/property manager will cover.
  
  Tenant information: Your lease should clearly identify everyone who will legally occupy the property. Include the full legal names of all tenants and outline the maximum number of allowed occupants. Include contact information for both landlord and tenants, including emergency contacts — this is important during emergencies or when important notices need to be delivered.
  
  Rules and responsibilities: Detail who’s responsible for various types of repairs and regular maintenance. Have a policy about pets or want to include a rule about smoking? This is the section to include what’s acceptable in the property and what isn’t. Being thorough and clear here is important to avoid possible disagreements with your tenant in the future.
  
  Legal elements: The legal section of your agreement protects all parties involved by clearly outlining important procedures and rights. Include conditions for early lease termination and the process for lease renewal. Detail the circumstances and procedures for eviction, and specify when and how the landlord may access the property. Include any legally required disclosures about property conditions or known hazards.
  
  Finally, ensure there’s space for all parties to sign and date the agreement, making it legally binding. Tip: Our AI lease generator is integrated with Lumin Sign so you can easily send your completed agreement to all parties for secure, legally binding eSignatures.

• Do I need a lawyer to draft my lease agreement?

  No, it’s not necessary or a legal requirement to use a lawyer to create your lease agreement.
  
  Especially for straightforward residential leases, lots of landlords successfully create the necessary documentation by using tools like the Lumin AI lease agreement generator or by building on a residential property lease agreement template.
  
  To save money and time while also having the confidence of legal input, some choose to either generate an agreement or use a template as a foundation, before asking a lawyer to review. This typically allows landlords to save time and money while having the confidence of a legal review.