How To Build Your Rental Lease Agreement
- Gabby Hillier
- May 23
- 2 min read
By Gabby Hillier, Real Estate Investing Masters
May 23, 2025 | Edmonton, Alberta
If you're a landlord in Canada — especially in Alberta — having a rock-solid lease agreement isn’t optional. It’s the foundation of your business.
In today’s episode of the Real Estate Investing Morning Show, we share the essential clauses every rental lease should include. We also walk through how we’ve customized our own lease over the years to prevent conflict, simplify management, and stay fully compliant with Alberta’s Residential Tenancies Act.
Whether you're managing one property or scaling to a full portfolio, this episode will help you tighten up your lease and protect your investment.
The 5 Core Sections of a Strong Lease Agreement
1. Legal Must-Haves: Tenant & Property Details
Every lease needs:
Full legal names of all adult tenants
Accurate property address
Lease start and end dates
Monthly rent amount and due date
Properly collected security deposit (max one month’s rent in Alberta)
2. Rent Payment Terms
Outline:
Accepted payment methods (e-transfer, pre-authorized debit, etc.)
Late fee policy and grace period
NSF fee for bounced payments
Rent increase protocol
3. Maintenance Responsibilities
Be specific about:
Who shovels snow, mows the lawn, and changes furnace filters
How tenants should report issues (email, web form, app, etc.)
What counts as an emergency repair and how to contact you
4. Conduct Rules & Legal Clauses
Include clauses for:
No smoking (including cannabis)
Pet restrictions or rules
Quiet hours and behavior expectations
No unauthorized occupants or sublets
Peaceful enjoyment and your right to enter (24 hours notice in Alberta)
5. Bonus Clauses We’ve Added Over the Years
Over time, we’ve refined our lease with extra terms that have saved us headaches:
No marijuana growing allowed on the property
Fire pit rules or bans based on safety and insurance
Pet sanitation responsibilities (droppings, litter boxes)
Mandatory tenant insurance with proof required
These extras often make the difference between passive income and landlord chaos.
Final Thoughts
Your lease is your protection. If you want to run your rentals like a business, you need clear expectations and enforceable terms.
If you’re unsure about what your lease is missing or want help building a better one, check out our upcoming Remote Property Management Course — we cover everything you need to run your rentals from anywhere in Canada.
Listen to Today’s Episode:
Real Estate Investing Morning Show – Hosted by Wayne & Gabby Hillier
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