Disclaimer: This blog post is meant for informational purposes only and does not constitute legal advice. Consult with a licensed attorney in Pennsylvania for specific legal guidance.Â
Navigating the world of residential property management in Pennsylvania requires a keen understanding of lease agreements and how they operate within the state’s legal framework. As a property manager, knowing how to create an effective agreement that can cover all your bases is important if you want to have longer lasting, more profitable leases that tenants renew.
This guide serves as a comprehensive overview of lease agreements in the Keystone State, helping you to stay informed and craft the most effective possible lease for your area.
You can also download our free Pennsylvania sample lease agreement template using the “Download Sample Form” button above and harness the knowledge below to customize your agreements to meet your specific needs. Remember to have your legal counsel review your lease for compliance before offering it to prospective residents.
What Is a Pennsylvania Lease Agreement?
The Pennsylvania lease agreement is a binding contract that cements the understanding between an owner and tenant over the use of a designated property. This agreement signifies a mutual commitment: both sides pledge to respect and follow the set terms and conditions for the lease’s entirety. It sets a transparent framework, giving everyone involved a clear grasp of their responsibilities.
In case of disagreements, a lease agreement serves as a foundational reference. It stands as a protective shield, legally safeguarding the rights and interests of the owner, the property manager, and the tenant. If either side doesn’t fulfill their commitments, legal action can be taken by the aggrieved party.
Who Needs a Pennsylvania Lease Agreement?
A Pennsylvania lease agreement benefits all parties involved in several different ways. Here are what different groups can gain from a well-crafted agreement:
Property Owners: While a property owner might not engage in daily management, a consistent lease agreement sets the parameters so that their properties are leased on terms they approve of, protecting their interests.
Property Managers: Serving as the bridge between property owners and tenants, these professionals rely on a comprehensive lease agreement. This document aids them in overseeing the property efficiently and addressing any potential conflicts or issues.
Tenants: For tenants, the lease agreement is equally important. It provides them with security, clarity on their obligations, and insight into what they can anticipate from the property owner or manager.
Other Real Estate Professionals: Even if they’re not directly partaking in property management, understanding lease agreements is advantageous for realtors and similar professionals, especially when guiding clients through the rental landscape.
Types of Pennsylvania Lease Agreements
In Pennsylvania, there are various types of lease agreements tailored to different rental situations:
Fixed-Term Lease: This is the most common type of lease, typically lasting for a year. It specifies a start and end date. Neither party can terminate the lease prematurely without a valid reason defined within the agreement.
Month-to-Month Lease: This agreement automatically renews every month unless either party gives the other a 15-day notice before the end of any monthly term. It offers flexibility but may also mean less stability for both owners and tenants.
Week-to-Week Lease: This is similar to month-to-month, but on a weekly basis. A seven-day notice is typically required to terminate this form of lease.
Sublease Agreement: A sublease allows an existing tenant to rent out all or part of the rental unit to another party. The original tenant becomes the sublessor, and the new tenant becomes the sublessee. Whether or not you allow a potential sublease should be clearly detailed in the original lease.
Room Rental Agreement: This type of agreement is ideal for owners who want to rent out individual rooms in a larger property, such as students in a shared housing situation.
What Should a Pennsylvania Lease Agreement Include?
A comprehensive, clear, and legally compliant lease agreement not only protects the property but also sets the tone for a positive owner- or property manager-tenant relationship. Below, we’ll break down the essential components a Pennsylvania lease agreement should include.
Parties Involved
Every lease agreement should include details on two main parties, owners (or property managers acting as their representatives) and tenants:
-Owner / Property Manager Details: The full legal name and contact details of the owner or property management company should be included. If a property management company is acting on behalf of the property owner, that distinction should be clear.
-Tenant Details: This includes the full names of all adults who will be residing in the property. keeping all adults legally responsible for the obligations set forth in the lease.
Lease Duration Dates
Specify the exact start and end dates of the lease, for example, a one-year lease from January 1 to December 31. Even if you opt for a month-to-month lease, note the initial start date and the requirement for a 15-day notice for termination by either party.
Rent and Security Deposit Information
Of course, you’ll also need to establish the monthly rent and due date in your lease agreement. Specify acceptable payment methods, such as checks, online payments, or money orders.
Pennsylvania law doesn’t set a maximum limit on security deposits for the first year of renting, but after one year, the owner cannot hold a deposit greater than one month’s rent. The conditions for the return of the deposit and any deductions should also be detailed.
Occupancy Limits
Clearly state that only the individuals named in the lease agreement are allowed to reside in the property. This clause verifies that the owner has control over occupancy and can prevent unauthorized tenants.
Property Management Company and Tenant Responsibilities
Detail who is responsible for routine maintenance tasks, lawn care, snow removal, and minor repairs. Specify responsibilities for more significant issues such as structural problems or systems failures, as well.
If the property management company has established community rules or standards, they should be attached to the lease or included as an addendum (more on addenda in the next section).
Pet Policies
Pennsylvania does not have statewide regulations about pets in rental properties, so owners and property managers have discretion. Your policy should cover:
-Pet Restrictions: Specify types or breeds of pets that are not allowed or set weight limits.
-Pet Deposits or Fees: If applicable, detail any extra security deposits or monthly fees for tenants with pets.
-Liabilities: Make sure it’s clear that tenants are responsible for any damage caused by their pets.
You should also consider pet screening and include the parameters for it in the lease.
Pennsylvania Lease Agreement Addenda and Disclosures
In Pennsylvania, as in many states, certain disclosures and addenda are legally required in residential lease agreements.
These are some of the addenda and disclosures you need to be aware of to keep your lease agreements both comprehensive and compliant. This list is not exhaustive, so consult a legal professional if you’re unsure about what to include in your own agreements.
Lead-Based Paint Disclosure
For properties built before 1978, federal law requires owners to provide tenants with a lead-based paint disclosure. This disclosure informs tenants about the potential presence of lead-based paint hazards in the property. Owners and property managers are required to:
-Provide a lead hazards information pamphlet
-Include specific warning language in the lease agreement
-Disclose any known presence of lead-based paint or hazards in the property
Owner and Tenant Act Summary
Pennsylvania requires owners and property managers to provide tenants with a summary of the Landlord and Tenant Act of 1951. This summary outlines the rights and responsibilities of both parties and provides tenants with a clear understanding of the state’s owner-tenant laws.
Bed Bug Disclosure
While Pennsylvania doesn’t mandate a specific bedbug disclosure, it’s a good practice to include it. In cities where bed bugs can be a more common concern, a disclosure can clarify responsibilities related to prevention, treatment, and associated costs. It can also provide information about the current status of the property concerning bed bug infestations.
Optional Disclosures and Addenda
Beyond the mandatory disclosures, property managers may opt to include additional disclosures and addenda to protect both parties and the property:
-Move-In Checklist: A checklist helps record the condition of the property at move-in, providing clarity about damages and responsibility at move-out.
-Pet Addendum: If you decide to allow pets, this addendum can detail the types, breeds, or sizes permitted, along with any additional deposits or fees.
-Smoking Policy: Make clear where smoking is and isn’t permitted, and if violations will result in penalties.
-Early Termination: This clause provides conditions under which the lease can be terminated early, including fees or penalties that may apply.
Consequences for Excluding Mandatory Disclosures
Neglecting to include mandatory disclosures can have serious implications:
-Invalid Lease Agreements: Failure to provide required disclosures may render a lease agreement invalid, jeopardizing the ability to enforce lease terms.
-Financial Penalties: Owners might be liable for fines or damages if tenants are harmed due to non-disclosure of information, particularly concerning lead-based paint.
-Legal Disputes: Omitting disclosures can result in legal disputes, costing time and money, and damaging the property manager’s reputation.
Pennsylvania Lease Agreement Laws and Regulations
Understanding the intricacies of Pennsylvania’s lease agreement laws and regulations is just as important as knowing the components of the lease itself. Staying compliant not only helps you avoid potential legal issues but also fosters trust with your tenants.
Here’s what you should know about Pennsylvania’s residential lease laws:
Security Deposits
States often have specific requirements on security deposit maximum amounts, return time periods, and penalties for failing to comply with these regulations. There may also be requirements on where you store security deposits and what you can withhold. Generally, deposits should be returned in a timely manner and portions of the full amount can be withheld for unpaid rent and damages beyond normal wear and tear, but be sure to follow Pennsylvania law for specific requirements.
Right of Entry
Regarding an owner’s right of entry, it is considered best practice to provide at least 24 hours’ notice. Owners are typically allowed entry for reasons such as performing repairs, conducting inspections, or showing the property to prospective tenants or buyers. Emergencies, where immediate access is necessary, are often an exception, but be sure to consult your local laws for the most current and specific requirements.
Grace Period & Late Fees
Pennsylvania doesn’t mandate a specific grace period for rent payment in its statutes. However, if a grace period is mentioned in the lease agreement, the owner must honor it.
Late fees are permitted in Pennsylvania, but they must be specified in the lease agreement. Keep in mind that any late fees are reasonable and not punitive. If a late fee is deemed excessive, it might not hold up in court.
Evictions
In Pennsylvania, owners should wait unit the grace period outlined in the lease has passed before initiating an eviction.
Remember that this article is intended for informational purposes and does not constitute legal advice. Always stay aware of any changes in the state’s laws and consider seeking legal counsel when drafting or revising lease agreements.Â
Taking the Next Steps with Your Pennsylvania Lease Agreement
Understanding Pennsylvania lease agreements is not just about staying compliant with the law—it’s also about fostering clear communication and setting the foundation for a positive owner-tenant relationship.
Property managers in the state should familiarize themselves with the specifics of the lease agreements, to protect both their interests and those of their tenants. Doing so can lead to more profitable leases and smoother operations.
Once you’re ready, be sure to download our free Pennsylvania sample lease agreement template using the “Download Sample Form” button above to help you get started customizing your own leases.
