Protect Your Property: 10 Common Lease Loopholes and How to Fix Them

Landlords know that some tenants can be clever when it comes to finding ways around lease terms. Most tenants are responsible, but every once in a while, someone might exploit a vague or poorly worded clause in your lease. So, let’s go over some of the most common lease loopholes tenants might try to use and how you can close these gaps to protect your property and peace of mind.

1. Sneaky Subleasing or Extra Roommates

One of the most common lease loopholes tenants try to exploit is bringing in additional roommates or subletting without permission. Some tenants may want to split the rent or make extra money by subletting a room (or even the entire unit on platforms like Airbnb). If your lease doesn’t specifically prohibit subletting or adding roommates without approval, tenants might see it as fair game.

Close This Lease Loophole: Spell out in the lease that all adult occupants must be listed on the lease and require that subletting or adding roommates must be approved in writing by the landlord. Include language that unauthorized occupants are a lease violation and could result in fines or eviction. You can even specify that short-term rentals (like on Airbnb) are prohibited.

2. Vague Pet Policies

Some tenants might take advantage of vague pet policies, especially if you didn’t clearly define what constitutes a “pet.” Maybe you allow pets under a certain weight but don’t specify any other restrictions, and then your tenant brings in an exotic pet or multiple “emotional support” animals without notifying you.

Close This Lease Loophole: Be as specific as possible with your pet policy. Define the number and types of pets allowed, as well as their weight limits. Make it clear that any pets not listed in the lease are not allowed on the property without written consent. If you allow only certain types of pets or limit the number, spell this out explicitly. Be careful about service animals, though, as they’re protected by law.

3. Partial Rent Payments

Some tenants use lease loopholes to avoid eviction with partial rent payments. Accepting partial rent payments can be risky. Some tenants may try to pay only part of the rent due, hoping to avoid late fees or eviction by showing they’re “making an effort.” Unfortunately, some states consider accepting even a partial payment as waiving your right to enforce an eviction for non-payment.

Close This Lease Loophole: Include a clause in your lease stating that you will not accept partial rent payments unless approved in writing. Clearly outline the consequences for late or incomplete rent payments, and consider working with a property management platform that allows you to enforce this rule without exceptions.

4. Getting Around Maintenance Responsibilities

Some tenants may try to avoid their basic maintenance responsibilities, such as changing light bulbs, replacing smoke detector batteries, or cleaning up after themselves. Without clear terms, tenants might argue that they thought you would handle these small tasks as the landlord.

Close This Lease Loophole: Specify in the lease what maintenance tasks are the tenant’s responsibility. This should include things like keeping the property clean, changing light bulbs and smoke detector batteries, and handling minor issues that don’t require a professional. By setting clear expectations, you reduce the chances of misunderstandings or disputes.

5. Security Deposit “Loopholes”

Tenants might argue that wear and tear on the property (or even some types of damage) should be covered under normal use, making it harder to deduct anything from their security deposit. If your lease doesn’t distinguish between wear and tear and damage, tenants may try to argue that any issues left behind are just the result of regular living.

Close This Lease Loophole: Include a detailed list in your lease of what constitutes “normal wear and tear” versus “damage.” Specify that damage, which includes things like broken windows, stains on carpets, or holes in walls, will be deducted from the security deposit. Consider adding an inspection form for tenants to complete when they move in to establish the property’s condition and avoid disputes later.

6. Grace Periods for Late Payments

Some states mandate grace periods for late rent, but tenants might exploit these by consistently paying on the last day of the grace period, treating it as the “real” due date. If your lease doesn’t outline penalties for repeated late payments, you could be dealing with a tenant who regularly pushes the limits.

Close This Lease Loophole: Outline a late payment policy that includes a set due date and stipulates when late fees will kick in. You could also include language stating that repeated late payments (even within the grace period) can result in a violation of the lease terms. This sets an expectation that rent should be paid on time, every time.

7. Loopholes in Utility Payments

If you aren’t clear on who pays for utilities, tenants may try to use these lease loopholes to argue that they’re covered in the rent. This is especially common in situations where certain utilities fluctuate (like water), and the tenant is unsure of how much they’ll need to cover.

Close This Lease Loophole: Clearly state in the lease which utilities (water, electricity, gas, trash, etc.) are the tenant’s responsibility and which, if any, are included in the rent. If you have utility caps (for example, covering up to a certain amount of the water bill), make sure these are clearly outlined in the lease so there’s no confusion.

8. “Extended” Guests

Your tenant’s “guest” might start staying overnight frequently, and soon enough, that guest practically lives there. If your lease doesn’t specify a limit on how long guests can stay, tenants may push the boundaries, resulting in unlisted, unapproved residents on your property.

Close This Lease Loophole: Set a clear limit on guest stays in the lease. For example, you could say that any guest who stays more than 10 days in a 30-day period needs written approval. Spell out that extended or frequent stays beyond this limit are a violation and can lead to fines or even eviction.

9. Ignoring Smoking Rules

If your property is smoke-free but the lease doesn’t specify what that means (indoors, outdoors, vaping, etc.), tenants may think that just because they’re outside, they can smoke. Or, they may assume vaping indoors is okay because it doesn’t produce smoke.

Close This Lease Loophole: Define a no-smoking policy that includes any and all smoking materials (cigarettes, cigars, vaping, and any other tobacco products) and specify whether this applies to the entire property, indoors only, or only certain areas. Make it clear that violating the smoking policy is grounds for penalties or lease termination.

10. Breaking Lease Without Penalty

Some tenants may try to break the lease early without consequences, claiming they didn’t know the penalties. If you don’t have a well-defined early termination policy, tenants may feel justified in leaving early without paying what they owe.

Close This Lease Loophole: Include an early termination clause that outlines the tenant’s responsibility if they want to break the lease, such as paying for an extra month of rent or covering costs until a new tenant is found. This clause ensures that you’re compensated for the unexpected vacancy.

Wrapping Up: Write a Strong, Detailed Lease

A well-written leasing document is your best defense against people who would exploit lease loopholes. By clearly spelling out each responsibility, policy, and consequence, you can prevent misunderstandings and ensure tenants follow the rules. It may take a bit of extra time to draft a comprehensive lease, but it will save you countless headaches down the road.

Looking for a rental home in Portland, or have a property to lease? Contact Rent Portland Homes by Darla Andrew today at (503) 515-3170 to learn more about our rental properties and property management services. Whether you’re a tenant or a landlord, we’re here to help make renting a seamless experience!