Rent Payment Terms and Late Rent Penalties
Your lease must clearly specify the rent amount, due date, and where payment should be made. Most leases state rent is due on the first of the month. You should also specify acceptable payment methods (check, ACH transfer, online portal) and whether you accept partial payments. Include language stating that partial or late rent does not constitute lease violation cure and you retain the right to pursue non-payment eviction.
Late fees must be reasonable and clearly disclosed; Texas courts may not enforce exorbitant late fees considered 'penalties' rather than 'liquidated damages.' A reasonable late fee is typically 5–10% of the monthly rent or a flat amount ($50–$100) for properties under $1,500/month. State when the late fee is assessed (e.g., if rent is five days late) and whether it is waived if the tenant brings rent current by a specified date. This clarity prevents disputes and demonstrates good faith.
Maintenance Responsibilities and Property Rules
Explicitly define which maintenance and repairs are the tenant's responsibility and which are yours. You cannot eliminate your habitability obligations, but you can specify that tenants are responsible for minor cosmetic repairs (replacing light bulbs), yard maintenance, or upkeep of appliances you provided. Include rules about lawn care, snow removal, and exterior appearance. Clearly state that tenants cannot make structural alterations or modifications without written permission.
Address pet policies in detail: the number of pets allowed, size or breed restrictions, pet deposit amounts, and pet fees or rent additions. Define what constitutes damage caused by pets versus normal wear. Include a clause requiring the tenant to immediately report repairs needed (leaks, damage, pest problems) in writing. Specify that failure to report and address issues promptly may result in larger damages and loss of the habitability defense.
Entry Rights and Inspection Clauses
Texas Property Code § 92.008 restricts your right to enter the property: entry is permitted for showings to prospective tenants/buyers, maintenance and repairs, inspections, or emergencies. The lease should state you must provide 24 hours' advance written notice (except emergencies) and that entry must be at reasonable times. This clause protects you legally by establishing tenant expectations and demonstrating respect for their privacy.
Include language allowing you to conduct move-in and move-out inspections. The move-in inspection should document the property's condition before the tenant takes possession; the move-out inspection documents any damage beyond normal wear. Include a clause stating the tenant must be present or represented at these inspections when possible. Document any discrepancies between move-in and move-out conditions as evidence for security deposit deductions.
Insurance, Liability, and Default Provisions
Include a clause requiring tenants to carry renter's insurance, which protects their personal property and provides liability coverage if someone is injured in the unit. While you carry landlord's insurance, it does not cover tenant damage to the structure or tenant liability. Recommend a minimum of $300,000 liability coverage and require the tenant to list you as interested party on the policy.
Define what constitutes material lease violation: non-payment of rent, possession of illegal substances, violating lease rules after written notice, or unauthorized occupants. State that material violations entitle you to pursue eviction and that the tenant forfeits certain rights (like repair-and-deduct remedies) if they are in material default. Include a severability clause stating that if any lease provision is found unenforceable, the remaining provisions remain in effect. Have an attorney review your lease template annually to ensure compliance with current Texas law.