Common Pitfalls in Lease Drafting and How To Avoid Them
It may seem easy to write a lease agreement, but even experienced landlords and property managers can make mistakes that can lead to problems or legal trouble down the road. A lease is more than just a contract; it sets the rules for how a landlord and renter can work together. If the rules are unclear, outdated, or unfair, both sides may end up in tough situations they could have avoided.
Ambiguity in Key Terms
One of the biggest traps in lease drafting is unclear language. For example, you shouldn’t say “rent is due monthly”, cause it may seem too vague. What does “monthly” mean? Is it the first of the month, the day the tenant moved in, or something else? Also, terms like “utilities included” don’t make it clear whose utilities are included, how much use is covered, or what happens if bills go up.
How to avoid it:
Be specific. Tell people exactly when their payments are due, how much they owe, and what will happen if they don’t pay on time. Set rules for utilities such as energy, water, the internet, and rubbish pickup, and explain how to handle extra charges.
Relying on Outdated or Generic Templates
Copy-pasting from old or irrelevant leases is a recipe for legal trouble. Outdated documents may fail to meet modern requirements, such as digital signatures or current tenant rights.
How to avoid it:
Always use updated, jurisdiction-specific templates. A Loio lease agreement document is a legally sound foundation that you can customize to your property and state laws. Starting with a proven template minimizes risk and saves time.
Missing Legal Disclosures
Every jurisdiction has mandatory disclosure requirements. Whether it’s lead-based paint in older buildings, flood risk, or mold prevention guidelines, leaving out required
Disclosures can render a lease non-compliant or even unenforceable.
How to avoid it:
Check local laws for disclosure requirements and incorporate them into your lease. Skipping this step exposes landlords to legal penalties and undermines tenant trust.
Overly One-Sided Clauses
Some landlords pack leases with terms that favor them almost completely, like free access to the property or unfair penalty clauses. Courts may strike down overly one-sided agreements, leaving both parties without clear rules to follow.
How to avoid it:
Balance obligations. Landlords should clarify repair responsibilities, but tenants should also have obligations like reporting issues promptly. Mutual fairness makes the lease enforceable and builds better landlord-tenant relationships.
Unclear Maintenance and Repair Obligations
Who fixes leaky faucets? Who deals with pest control? Without clear boundaries, minor issues can escalate into serious disputes. Tenants may assume that all expenses are covered by the landlord, while landlords expect tenants to take care of minor repairs themselves.
How to avoid it:
Outline responsibilities clearly. For instance.
- Landlord: structural repairs, HVAC, plumbing, electrical.
- Tenant: minor repairs (lightbulbs, clogged drains), cleanliness, notifying landlord of major issues.
Add repair timelines for urgent vs. routine requests to avoid misunderstandings.
Missing Terms on Defaults and Remedies
Many leases don’t clearly outline what happens when terms are breached. Without clear procedures for nonpayment, damage, or unauthorized subletting, landlords risk lengthy disputes.
How to avoid it:
Include a section on defaults and remedies. Define what constitutes default, whether there’s a grace period, and what steps follow, such as late fees, cure periods, or eviction proceedings. This creates a structured path forward, rather than chaos, when problems arise.
Skipping Professional Review
Even solid templates can benefit from professional oversight. Assuming a “standard lease” will cover every situation is risky, especially for commercial rentals or multi-tenant arrangements.
How to avoid it:
For complex situations, ask a real estate attorney to review your lease before signing. The cost of a short consultation is far less than the price of litigation down the line.
Weak Renewal and Exit Clauses
A lease that doesn’t explain what happens at the end of the term creates confusion. Does it automatically renew? How much notice must tenants give if they want to leave? Can landlords adjust rent?
How to avoid it:
Detail renewal and exit clauses. Include.
- Notice periods for non-renewal.
- Whether renewal is automatic or requires a new lease.
- How will rent changes be applied on renewal?
- Early termination conditions (with penalties if applicable).
Failing to Address Property Use and Alterations
If a lease doesn’t restrict property use, tenants may use residential spaces for business, make unauthorized alterations, or sublet on platforms like Airbnb.
How to avoid it:
Be explicit about allowed uses and alterations. Require landlord approval for any structural changes, business operations, or subletting. This keeps property use aligned with the landlord’s intentions and local regulations.
Conclusion
Lease agreements are not just formalities; they’re protection. A vague or incomplete lease invites disputes, while a carefully drafted one safeguards both parties and ensures smoother tenancies.
Avoid ambiguity, comply with disclosure laws, balance responsibilities, and keep your documents updated. Starting with a reliable base, such as a Loio lease agreement document, ensures your lease is both compliant and clear. Add a professional review for extra peace of mind, and you’ll save yourself time, stress, and money in the long run.
Megan Thompson is the Legal Operations Coordinator at Loio, where she reviews legal contracts and contributes to all law-related matters, while also creating expert articles. Drawing on her background as a Corporate Paralegal, she blends legal expertise with creativity to make complex concepts accessible. In addition to her work at Loio, Megan runs her own expert blog, where she explores the legaltech landscape and shares practical strategies for professionals.
