How to Execute a Sound Rent Agreement: Clauses That Protect Both Sides

This article is general information only, not legal advice, and not solicitation of work. It should not be relied upon as a substitute for advice on your specific facts.

Why the Agreement Matters More Than People Expect

A rent agreement is frequently treated as a formality, filled in from a template with minimal thought. In practice, it is the primary document that determines what happens when something goes wrong, a maintenance dispute, an early exit, or disagreement over the security deposit, and a poorly drafted one leaves both landlord and tenant exposed.

Lock-in Periods and Early Exit

A lock-in period binds both parties to the tenancy for a minimum duration, during which neither can ordinarily terminate without penalty. The agreement should state this clearly, along with the notice period required to vacate after the lock-in ends, and any penalty for early exit, so neither side is caught by surprise.

Maintenance, Deposit, and Increases

The agreement should specify who bears routine maintenance costs versus structural repairs, the security deposit amount and the timeline and conditions for its refund, and the schedule and percentage of any periodic rent increase. Ambiguity on the deposit refund process is one of the most common sources of post-tenancy disputes.

Registration and Practical Protections

Under most state Rent Control laws, agreements for a term of one year or more should be registered, which strengthens their evidentiary value considerably. Both parties benefit from a signed inventory of fixtures and fittings at the start of the tenancy, photographs of the property’s condition, and clear, written communication for any changes agreed after signing.

This note is prepared by our Real Estate team. If you are dealing with a related situation, get in touch with us.