Building a lease can seem like an overwhelming task, as there is a lot of pressure to ensure you have sufficient information that protects you and your property throughout the renting term. Before you get to the clauses, it helps to settle whether you want a lease or a rental agreement, since that choice shapes much of what follows. The best way to write a lease that is suited to your property is to work with your property management company. At Utopia, we gladly work personally with our clients to help them craft a lease that covers all the bases of property rentals. However, for constructing a lease on your own, there are a variety of templates you can find online to help get you started. Tenants come at the document from the other side, so it helps to know the 13 things a renter checks before signing a lease when you decide how to word your own terms. Here are some of the most essential lease clauses to include in your lease:
A quick caveat before the list: the notes below reference California rules as they stand in 2026, and they are general information rather than legal advice. Landlord-tenant law varies by state and by city, and it changes often, so confirm the current rules for your property with a qualified attorney or your property manager before you finalize a lease.
Severability
A severability clause is easily overlooked but plays an important role in the protection of the lease. Severability states that in the event that any clause within the lease is deemed to be illegal, the rest of the lease remains intact and legally binding. This protects you and your real estate property should there be a mistake in the lease or if your local laws change and part of your lease does not follow new guidelines or regulations.
Rent Amount and Process
Important details to disclose concerning rent include how often rent is payed and the term of the lease. You may choose to clarify the actual amount of the rent as well, or even a breakdown of the rent payment. Additionally, delineate the acceptable payment methods or preferred process for rent payment, whether it be direct check drop-off, mail-in, or an online software. If your property falls under statewide rent control, the amount you can raise rent at renewal is also capped, so it is worth knowing the current ceiling before you set a number.
- California’s Tenant Protection Act (AB 1482) limits annual rent increases on covered units to 5% plus the regional change in the cost of living, or 10%, whichever is lower.
- The cap follows local CPI: the Los Angeles metro ceiling is 8.7% effective August 1, 2026, and the San Francisco-Oakland area rises to 8.8% from August 1, 2026 through July 31, 2027.
- AB 1482 runs through January 1, 2030, and many cities layer their own stricter rent-control rules on top of it.
Security Deposit
It is extremely important to specifically clarify the security deposit terms. You can specify the amount collected up front as well as the timeline and conditions for its return, which is required under state law. Getting the amount right matters more than it used to, because the legal ceiling changed and overcharging can expose you to penalties.
- Under California’s AB 12, effective July 1, 2024, the security deposit is capped at one month’s rent for both furnished and unfurnished units.
- A small-landlord exception allows up to two months’ rent if the owner is a natural person (or an LLC whose members are all natural persons) who owns no more than two rental properties totaling no more than four units.
- Active service members are capped at one month’s rent regardless of the exception.
Joint and Several Liability
A liability clause is vital to protect you legally in the event of partially unpaid rent, especially if there are multiple tenants living on the property. It considers all tenants to be jointly and individually liable for the lease agreement, making all tenants responsible for the entire rent amount and other lease clauses. This incentivizes tenants to hold each other accountable and offers full protection in the event of unpaid rent.
Late Rent Payments
It is extremely important to specifically clarify the late rent policy. You can specify any late fees as well as the grace period, which is required under some state laws. Additionally, it is recommended that this clause states that any late rent payments made by the tenant are first allocated toward outstanding fees before unpaid rent. This offers some legal protection, as “unpaid rent” is more easily defended during legal action compared to “unpaid late fees.” Keep in mind that California does not set a flat dollar cap on late fees; the fee has to be a reasonable estimate of the actual costs a late payment causes you, or a court may refuse to enforce it.
Maintenance and Repairs
In this clause you can spell out who handles what once the tenant moves in. Describe the tenant’s day-to-day upkeep duties and the repairs you keep as the owner, since the law already assigns you the core habitability items regardless of what the lease says. Laying this out early heads off arguments later, and it lines up with the broader landlord responsibilities on the property checklist.
Right of Entry
In this clause you can state the notice you will give before entering the property. California generally requires at least 24 hours of advance written notice for most non-emergency entries, such as repairs or showings, so build that expectation into the lease. Setting it out plainly protects the tenant’s privacy and keeps you on the right side of the entry rules.
Subleasing
In this clause you can state the subleasing policy or prohibit subleasing altogether. Describe the proper subleasing process, which can involve the same screening process as original tenants for any potential sublets. An explicit subleasing policy helps you maintain control of who is living on the property. You can also charge a one-time fee which could cover any unexpected expenses or discourage tenants from subleasing.
Lease Renewal
The best process of lease renewal is different for every landlord. Some prefer automatic renewal, and others prefer renewing on a case-by-case basis. This can be clarified in this clause of the lease. If you choose automatic lease renewal, it is recommended to require tenants to offer notice of non-renewal, which could be up to 60 days, to allow you time to find new tenants.
Early Termination
There are typically standard terms and agreements that can constitute an early termination or default of the lease if violated by either the landlord or the tenants, depending on the local laws. It’s always a good idea to outline these standards in a default clause. You can also list the required notice period for an early termination and the rent liability in the event of a default. For example, if the tenant is in default, you can still collect rent for the remaining period of the lease term, or until you complete mitigation.
Use of Premises
This is a broad subject for a clause that can include all of the expectations for proper use of the property. Most landlords include a list of the approved occupants and prohibit long term guests without previous approval. A guest staying longer than 2 weeks typically qualifies as long term. You can also provide a description of prohibited activities on the premises, such as commercial business. The pet policy can also be included in this clause, along with any pet deposit or pet rent, though note that these charges still count toward the deposit cap and cannot be applied to a tenant’s service or assistance animal.
General Expectations and HOA
In this clause, describe conduct expectations such as waste management and noise levels. You can also disclose HOA community guidelines or requirements if applicable. This often includes lawn care standards or any other regulations enforced by the HOA.
Required Disclosures
Important details to disclose concerning the property go beyond conduct and into the notices the law makes mandatory. Several written disclosures have to accompany a California lease, and leaving one out can make the related clause unenforceable or expose you to statutory damages. The common ones are worth keeping on a checklist:
- Lead-based paint, for any property built before 1978 (a federal requirement).
- A bed bug notice explaining how tenants should report suspected infestations.
- Mold, when a health risk is known or suspected.
- The Megan’s Law notice pointing tenants to California’s sex offender database.
- Flood-zone status, if the property sits in a designated special flood area.
- An AB 1482 rent-cap notice, or the exemption notice if the unit is not covered.
Surrender of Premises
It’s helpful to have specific move-out instructions included in the lease to avoid unnecessary hassle and to hold tenants accountable for the state of the property. Common move-out details include cleaning expectations, the period of time for vacating the premises, and key delivery.
Frequently Asked Questions
What clauses should a lease include?
At a minimum, clarify the rent amount and payment process, the late rent policy, and the security deposit terms. From there it is wise to add severability, joint and several liability, subleasing rules, lease renewal and early termination terms, right of entry, maintenance duties, use of premises, required disclosures, and clear move-out instructions. Working with your property management company helps you craft a lease that covers all the bases.
Are lease clauses enforceable?
A clause is enforceable only when it follows current law, which is exactly why a severability clause matters. Severability states that in the event any clause within the lease is deemed to be illegal, the rest of the lease remains intact and legally binding. Terms that exceed legal limits, such as a security deposit or late fee above what the law allows, may not hold up in court even when both parties signed.
What disclosures are required in a lease?
In California a lease must carry several written disclosures, including lead-based paint for properties built before 1978, bed bugs, mold, the Megan’s Law database notice, and flood-zone status, plus an AB 1482 rent-cap or exemption notice. Missing even one required disclosure can make the related clause unenforceable. This is general information rather than legal advice, so confirm the current list for your property.
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