Think your lease is airtight? Think again.
Whether you’ve been doing this for a decade or you’re still googling “what goes in a lease,” these tips will make you better. And when you're better, your investment makes you more money with fewer headaches. That’s what we all want, right?
Verbal Leases Are Legal… and That’s Where the Good News Ends
Yes, in Pennsylvania, you can legally create a residential lease agreement for up to three years without writing a single word down. Sounds easy, right? But it’s dumb. Don’t do it.
If it’s not in writing, it didn’t happen. End of story. Judges don’t want to hear about what you “said” or “agreed to” over text or at a kitchen table. You need a written lease that both parties have signed, and any changes or amendments need to be written down and signed, too.
It’s not just about protecting yourself—it’s about setting expectations and being able to enforce them.
Stop Hiding Behind Month-to-Month Leases
I hear this one all the time: “I like month-to-month leases because it’s easier to get rid of bad tenants.” Come on. That’s weak sauce.
If you’re afraid to commit to a full-year lease because you're worried the tenant might suck, that tells me you’ve got a screening problem, not a leasing problem.
Month-to-month leases do nothing but create instability for your rental business. You're putting in the time, money, and energy to attract qualified tenants. Why would you want that to last only 30 days at a time?
An annual lease gives you the consistency and security your business needs. It makes your property worth more and keeps your income steady. If you are worried about who you are renting to, screen them.
Know Who Is on Your Lease
Not everyone living in your property is the same when it comes to lease agreements. There are three types of people you need to know:
Lease Holders
These are the adults over 18 who sign the lease. They’re legally responsible for the rent, the property, and following all the terms. They also have the right to live in the property. If you’re renting to a single adult with no dependents, they’re the only lease holder.
Occupants
These are people who live there but aren’t signing anything. Think kids, dependents, or someone with a disability who can’t legally sign a contract. They don’t have any legal responsibility, but they still count when it comes to who’s living in your property. They need to be listed.
Co-signers
These people are financially responsible but don’t get to live there. They’re on the hook for the lease terms and the rent, but they have zero right to occupy the property. It's usually a parent or someone helping the tenant qualify.
Here’s a real-world example:
Say a single mom applies with her 10-year-old daughter. She’s the lease holder. Her kid is the occupant. If her credit’s not strong enough, she might need a co-signer—maybe her dad. That’s three different roles, each with different rights and responsibilities.
Lease holder = rights and responsibilities
Occupant = rights, no responsibilities
Co-signer = responsibilities, no rights
Don't Screw Up the Signatures
Now that you know who belongs on the lease, let’s talk about who needs to actually sign it.
The lease holders and the co-signers must sign the lease. Occupants do not. And listen closely—this is big—you don’t give out keys until every signature is on that lease. Every. Single. One.
I’ve seen too many landlords hand over keys because “most of it was signed” or “the other person was coming later.” No. That’s how you end up with unauthorized tenants, legal limbo, and a lot of regret.
Also: don’t you dare pre-sign that lease and send it to the tenant first. Make sure they sign it before you do. That way, they can’t claim they never agreed to it or ghost you after you've already committed.
Once the lease is fully signed, send a copy to everyone involved. Don’t assume anyone will remember what they signed months from now. You want everybody on the same page—literally.
Your Lease Is an Asset—Treat It Like One
A lot of landlords treat the lease like a pain in the ass formality. It’s not. It’s the most important document in your rental business.
Your lease is what gives your property its income-producing value. Without it, you’ve got nothing but an expensive building. I can’t tell you how many times I’ve met landlords who lost their lease copies or never had one to begin with. Its not a problem until it is, and then it is a big one.
Keep that lease safe. Store it digitally in a secure place, and keep a paper backup, too. Use cloud storage, document management software, whatever works for you. But don’t leave this to chance. It’s not just paper—it’s your protection, your evidence, and your plan.
You Can’t Just Put Anything in a Lease
Sure, you can technically write whatever you want into a contract in Pennsylvania. But leases? Leases have rules. Lots of them.
Just because your tenant signed off on a $25-a-day late fee or some ridiculous "pet DNA registration" clause doesn’t mean a judge is going to enforce it. If it’s not aligned with the law or if it feels too harsh, a judge can toss it out in a heartbeat.
Want to avoid this mess? Get a lease that’s built for your state and reviewed by a real estate attorney. Not a template from a Facebook group. Not something you Frankensteined together from three places online. A real, enforceable lease. Period.
If It’s Not Enforceable, It’s Pointless
Another huge problem I see is leases that have no teeth. You’ve got a bunch of rules, but no consequences.
A judge can't enforce your lease if it doesn’t spell out what happens when someone breaks the rules. It’s not enough to say “no pets” or “no unauthorized guests.” What happens if they do it? That’s what matters.
The solution is simple. Reasonable, clearly written consequences. Fines are good. Lease termination rights can be helpful. But something has to be there or the judge’s hands are tied.
Your One Page Lease Isn’t a Flex
Some landlords love to brag about their one-pager. Like that somehow makes them smarter. It doesn’t.
Yes, your lease should be in plain language — that’s the law here in PA. But plain doesn’t mean bare-bones. You need to clearly cover every single expectation you have.
Snow removal. Lawn care. Pets in the house. Pets outside the house. Shared spaces. Restricted areas. Parking. Utilities. If you care about it, it belongs in the lease. Because if it’s not written, it doesn’t exist.
Month-to-Month Confusion Is Real
This one gets people all the time.
They say, “That one-year lease expired two years ago, so it’s just month-to-month now.” Maybe. Maybe not.
If your lease doesn’t clearly say what happens after the term ends — and you keep accepting rent and providing housing — then legally, that lease is still rolling. It's called renewal through performance or implied renewal.
Don’t leave this up to chance. Always include language in your lease that says it will automatically continue on a month-to-month basis after the term ends unless a new lease is signed. That way you’re not accidentally locking yourself into another full year with a tenant you didn’t mean to keep that long.
Selling the Property Doesn’t End the Lease
If you’re buying or selling a rental, listen up. Just because ownership changes doesn’t mean the lease disappears.
Leases “run with the land,” which means whoever owns the property also inherits the lease. The only thing that changes is who’s collecting rent and delivering the housing.
If you buy a property with six months left on a lease, congrats — you just became the landlord for that lease. Once it’s up, then you can renegotiate or change terms. If it’s month-to-month, you can serve proper notice and adjust. But you do not get to toss tenants out just because you bought the place. That’s not how it works.
Get the Move In Timeline Right
Let’s talk about the timeline, because getting this part wrong opens the door to a world of hurt.
Here’s how it should go:
The tenant reviews the lease before they apply. If you’re collecting an application fee or a deposit without giving them a chance to see what they’re agreeing to, that’s shady.
Once approved, you present the lease and get it signed.
You collect the deposit.
Before move-in, you collect first rent and hand over the keys.
If you mess up that order, you increase your risk — period. The lease needs to be signed and money needs to be paid before a single key is handed out. I’ve seen too many landlords burned because they got impatient or tried to be “nice.”
Final Word from PM Jen
Leases are the backbone of your rental business. They’re your protection, your rules, your whole damn playbook. But only if they’re written right, enforced properly, and used the way they’re supposed to be.
Don’t wing it. Don’t assume. Don’t copy your uncle’s lease from 1988.
If you’re reading this and thinking “damn, I might need to fix a few things,” good. That’s what was aiming for. Now get on it.
I’m PM Jen, the—landlord educator, real estate investor, and your favorite straight-talker in the buy-and-hold game. Hold It With PM Jen exists to help real estate investors protect their assets, grow their cash flow, and stop spinning their wheels.
Our mission is simple: help you hold properties smarter, longer, and with way less bullshit. Whether you're new to real estate or knee-deep in it, I’m here to help you hold strong and grow big.