Disclaimer: This blog post is meant for informational purposes only and does not constitute legal advice. Consult with a licensed attorney in Maine for specific legal guidance.Â
If you’re managing residential properties in Maine, understanding the details of lease agreements is key to protecting your investment and maintaining strong tenant relationships. A clear lease agreement sets expectations for both landlords and tenants, reducing misunderstandings and legal issues.
In this guide, we’ll cover everything you need to know about Maine lease agreements, from what they should include to the state laws you need to follow. To get started crafting your own documents, grab Buildium’s free lease agreement template using the button at the top of this post to help with your leasing process.
What Is a Maine Lease Agreement?
A Maine lease agreement is a legally binding document that outlines the terms of the rental arrangement between a landlord (or property manager) and a tenant. This contract lays out the rules, responsibilities, and expectations for both parties. It protects both the landlord’s property and the tenant’s rights, preventing potential disputes and misunderstandings.
In Maine, a well-written lease agreement helps both landlords and tenants know what to expect and how to handle issues if they arise. It also provides clarity on rental terms and avoids legal challenges down the road.
Who Needs a Maine Lease Agreement?
Anyone renting residential property in Maine should use a Maine lease agreement, especially if the rental term exceeds one year. Property managers and landlords must have a written lease to make sure both parties are on the same page. Even for shorter leases, such as month-to-month rentals, a written agreement offers peace of mind and helps avoid future confusion.
Why Use a Lease Agreement?
- Legal protection for both parties.
- Clear expectations for rent, maintenance, and other responsibilities.
- Avoids misunderstandings over important issues, such as property damage or payment schedules.
Without a lease agreement, it’s harder to resolve conflicts and protect yourself legally. You may also face challenges in court if a dispute arises.
Types of Maine Lease Agreements
Maine offers several types of lease agreements, each suited to different rental situations. Here are the most common:
- Fixed-Term Lease Agreement: Typically used for longer-term rentals, this lease covers everything from rent amount to the duration of the agreement and tenant responsibilities.
- Month-to-Month Lease Agreement: This lease automatically renews every month and can be terminated with short notice by either the landlord or tenant. It offers flexibility but often leads to higher tenant turnover.
- Sublease Agreement: This occurs when a tenant rents out part or all of their space to another person, keeping the original tenant legally responsible for the lease.
- Roommate Agreement: Used when multiple people share a rental, this agreement clarifies how rent and utilities are divided and sets rules for shared living spaces.
What Should a Maine Lease Agreement Include?
A Maine lease agreement should cover all the basics to keep everything clear and enforceable. Here’s a breakdown of what should be in your lease:
Parties Involved
Identify the landlord, tenant, and property manager (if applicable). Include full names, addresses, and contact information for each party.
Lease Duration Dates
Specify the start and end dates of the lease. If the lease automatically renews, make sure to state that clearly. For month-to-month leases, include terms for notice when ending the lease.
Rent and Security Deposit Information
List the rent amount, payment method, and the due date. Include penalties for late payments. Also, define the security deposit amount and the conditions under which it may be withheld (for damage, unpaid rent, etc.).
Occupancy Limits
Set rules about how many people can live in the unit. You can also include guidelines on guest policies and require tenant approval for anyone staying long-term.
Property Management & Tenant Responsibilities
Define what both the property manager and tenant are responsible for. Include maintenance tasks, who pays for utilities, and any specific duties required of either party.
Pet Policies
Clarify whether pets are allowed. If so, include the rules on pet behavior, cleaning, and any additional fees or deposits.
Maine Lease Agreement Addenda and Disclosures
Some disclosures are required by Maine law to protect tenants and landlords. Here are some important ones. Keep in mind that 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
If your property was built before 1978, you must notify tenants about potential lead-based paint hazards, as per federal law. You must also provide them with the EPA pamphlet on lead safety.
Bed Bug Disclosure
If the property has had any bed bug infestations or treatments within the last year, you must disclose this to the tenant.
Energy Efficiency Disclosure
If tenants pay for utilities, you must inform them about the property’s energy efficiency, including any energy-saving upgrades.
Radon Disclosure
Certain areas of Maine require radon testing. If radon is found, you must disclose this to tenants.
Smoking Policy Disclosure
Maine law requires landlords to disclose whether smoking is allowed on the property. If you don’t want smoking on the premises, make that clear.
Common Area Utility Disclosure
If utilities like water or electricity are shared, let tenants know how these costs are divided or charged.
Receipts for Rent and Security Deposit Payments
You must provide receipts for any cash payments made for rent or deposits.
Optional Disclosures & Addenda
You may want to include disclosures about issues such as mold or asbestos if applicable. These disclosures keep tenants informed about potential health hazards.
Consequences for Not Including Mandatory Disclosures
Failing to include required disclosures can lead to legal and financial consequences, such as fines or challenges in eviction cases.
Maine Lease Agreement Laws and Regulations
To stay compliant with Maine law, familiarize yourself with key regulations around lease agreements. Again, it’s always recommended to speak with a local legal professional for the most complete and detailed list of regulations.
Security Deposits
Maine limits the security deposit to one month’s rent. Landlords must return the deposit within 21 days of the tenant moving out, minus any deductions for damages or unpaid rent.
Right of Entry
Landlords have the right to enter a rental unit, but only with reasonable notice (usually 24 hours). Use this access for necessary repairs, inspections, or showings, and make sure to follow proper procedures.
Grace Period
Maine gives tenants a 15-day grace period to pay rent before landlords can start eviction proceedings or charge late fees.
Late Fees
Maine allows landlords to charge late fees for overdue rent, but the fee must be reasonable. Make sure to send tenants a written notice before applying any charges
Taking the Next Steps with Your Maine Lease Agreement
A well-drafted Maine lease agreement helps protect both landlords and tenants by setting clear expectations and outlining everyone’s responsibilities. It can help avoid disputes and ensure that both parties understand their rights and obligations.
Download Buildium’s free lease agreement template today to get started on creating a lease that meets Maine’s legal requirements. For a faster leasing process, you can also test out Buildium’s comprehensive property management software. You can give it a try with a 14-day free trial or by signing up for a guided demo.
With a solid lease agreement in place, you can manage your property confidently, knowing both you and your tenants are on the same page.
