Rental agreement

A general term for the contract between landlord and tenant. Can be a fixed-term lease or a month-to-month arrangement.

Rental & property management · Updated September 2026

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Part 1 of 4

Why a seller cares

Whatever it is called, the rental agreement is what the buyer of a rental steps into. A written one with clear dates is easy to sell with; a verbal one is a month-to-month tenancy the buyer has to take on faith.

Part 2 of 4

A simple example

Your tenant has been on a handshake for three years at $1,200. Legally that is a month-to-month tenancy, and the buyer wants it in writing before closing.

Rental agreement: a simple example
The agreementWhat it means for the sale
A written fixed-term leaseClear terms the buyer can read and rely on
A written month-to-month agreementClear terms, and a tenancy that can be ended with notice
A verbal arrangementMonth-to-month by default, and a buyer who wants an estoppel from the tenant

The rental agreement is the tenant's side of the sale. Written beats remembered.

Part 3 of 4

What people get wrong

That no lease means no tenant rights. A verbal tenancy has every right the state gives a month-to-month tenant.

Part 4 of 4 · where to read next

Where it appears in the sale

What a definition is, and what it isn't

Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.

Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish

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