What to Include in Your Residential Lease Agreement

To be considered complete, your residential lease must contain the following information.

Names of Lessees and Landowners

Your lease must identify the lessees and landowners that are parties to the lease. Where a representative executes a lease on behalf of one or more of the parties, the lease must identify the landowner or lessee being represented and the authority under which the action is taken.

Description of the Land

When possible, your lease must describe the leased land by reference to a public or private land survey. If this is unavailable, your lease must include one or more of the following:

• A legal description,
• A survey-grade global positioning system description, and/or
• A description prepared by a registered land surveyor.

Purpose of the Lease

Your lease must include the purpose of the lease and authorized uses of the leased land.

Some examples of the purpose of a lease include single-family residence or housing for public purposes, which also includes office space necessary for administering programs for housing and public purposes.

Lease Term Length

Your lease must specify a definite term length, state if there is an option to renew, and if so, provide a definite term for the renewal period.

For individually-owned land, the maximum length of a lease, including all potential renewal periods, may not exceed 50 years unless a federal statute allows for otherwise. For Tribal land, the BIA defers to Tribes regarding lease term length.

Option to Renew

If your lease includes an option to renew, it must include:

• The renewal term length,
• The terms and conditions for exercising the renewal option, and
• Submission of confirmation of the renewal to the landowners, the BIA, and any mortgagees.

Payment Requirements

Your lease must specify:

• Whether the lessee will make payments directly to individual landowners or to the BIA.
• Late payment charges, including interest.
• If payments are made directly to the individual landowners, then the lessee will provide proof of payment upon the BIA’s request.
• If payments are made to the BIA, they must be in the form of electronic funds transfer, money order, personal checks, certified check, or cashier’s checks.

For individually-owned land, varying types of compensation during the life of the lease and alternative forms of rental (including but not limited to in-kind consideration) are permitted, pending BIA approval. For Tribal land, the BIA defers to Tribes regarding varying or alternative compensation.

Permanent Improvements

If you anticipate the construction of permanent improvements, including constructing a residence itself, on the leased premises during the lease term, your lease must identify the ownership of permanent improvements and the responsibility for constructing, operating, maintaining, and managing them.

Leases that involve the construction of permanent improvements must:

• Authorize the construction of permanent improvements.
• Generally describe the type and location of the permanent improvements to be constructed during the lease term.
• Specify who will own any permanent improvements the lessee constructs during the lease term.
• Specify, for each permanent improvement the lessee constructs, whether the improvement will remain, be removed, or be disposed of by other means by the time the lease is terminated.

A lease that requires the lessee to remove the permanent improvements must also provide the Indian landowners with an option to take possession of and title to the permanent improvements if the improvements are not removed within the specified time period.

A provision is a specific clause in a contract or agreement that explains the expectations and limitations of the parties involved.

Residential leases on individually owned and Tribal restricted and trust land must include provisions that allow the BIA to assist individual landowners and Tribes when historic or culturally important properties, remains, or items are encountered, or when a lessee fails to comply with the lease.

All residential leases must specify that:

• If historic properties, archeological resources, human remains, or other cultural items not previously reported are encountered during the course of any activity associated with the lease, all activity in the immediate vicinity of the properties, resources, remains, or items will cease and the lessee will contact the BIA and the Tribe with jurisdiction to determine how to proceed and appropriate disposition.
• Unlawful conduct, creation of a nuisance, illegal activity, or negligent use or waste of the leased premises are not allowed.
• The lessee must comply with all applicable laws, ordinances, rules, regulations, and other legal requirements under 25 CFR 162.014.
• A lessee’s obligations on trust or restricted land are enforceable by the United States.
• The BIA has the right, at any reasonable time during the term of the lease and upon reasonable notice in accordance with 25 CFR 162.364, to enter the leased premises for inspection and to ensure compliance.
• The BIA may, at its discretion, treat as a lease violation any failure by the lessee to cooperate with a BIA request to make appropriate records, reports, or information available for BIA inspection and duplication.

Unless the lessee would be prohibited by law from doing so, the lease must also specify that:

• The lessee holds the United States and the Indian landowners harmless from any loss, liability, or damages resulting from the lessee's use or occupation of the leased premises.
• The lessee indemnifies the United States and the Indian landowners against all liabilities or costs relating to use, handling, treatment, removal, storage, transportation, or disposal of hazardous materials, or release or discharge of any hazardous material from the leased premises that occurs during the lease term, regardless of fault, with the exception that the lessee is not required to indemnify the Indian landowners for liability or cost arising from the Indian landowners' negligence or willful misconduct.

If you are an individual landowner or Tribe and would like BIA assistance with drafting residential lease provisions, please submit a written request to or visit your local BIA or Tribal realty office.