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Lease Agreement of Personal Property

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TEXAS COMMERCIAL LEASE

This lease agreement is entered into on this the day of , 20 , by and between:

(hereinafter called “LESSOR”), whether one or more, and

(hereinafter called “LESSEE”), whether one or more.

For valuable consideration, the receipt and sufficiency of which is hereby acknowledged, LESSOR and LESSEE do hereby covenant, contract and agree as follows:

1. PREMISES AND TERM: LESSOR hereby leases to LESSEE for the term commencing on the and ending on the (the “TERM”) the following described premises in its present condition, located in County, Texas:

LESSEE also has a right for the benefit of LESSEE, its employees, agents and invitees for access to and from the Leased Premises through the building and over property of LESSOR adjoining the Leased Premises, and to use those parts of the building designated by LESSOR for use by LESSEE, including but not limited to toilet rooms, elevators and unrestricted parking areas, if any.

2. RENEWAL: LESSEE and LESSOR may agree to extend or renew the lease, with any agreed modifications, in a separate, signed document.

3. RENT: The LESSEE covenants to pay to LESSOR as Rent the sum of Dollars ($) per month, in advance without demand on or before the first day of each month at the office of the LESSOR.

The Rent for the month of , which is the first month of this lease shall be paid in the amount of Dollars ($), which amount is the prorated rent based upon the date this lease commences.

The LESSEE shall pay the Rent when due and payable, without any setoff, deduction or prior demand whatsoever.

4. LATE CHARGES: LESSEE shall pay a late charge in the amount of percent (%) of the outstanding delinquent balance for any payment of the rent not made within days after the due date, but not more than dollars for any one month.

5. UTILITIES: LESSEE shall pay all charges for utilities for the PREMISES except for the following, which shall be paid by LESSOR:

6. CONDITION OF PREMISES; USE OF PREMISES: LESSOR agrees that LESSEE, upon paying the rent and on performing all terms of this lease, shall peaceably enjoy the Leased Premises during the term of this lease.

(a) To use these Leased Premises only for .

(b) To surrender the Leased Premises to LESSOR at the end of the Term or any renewal without the necessity of any notice from either LESSOR or LESSEE to terminate the same.

(c) To surrender possession of these Leased Premises at the expiration of this lease without further notice to quit, in as good condition as reasonable use will permit.

(d) To keep the Premises in good condition and repair at LESSEE’s own expense, except repairs which are the duty of LESSOR.

(e) To perform, fully obey and comply with all ordinances, rules, regulations and laws of all public authorities, boards and officers relating to the use of the Premises.

(f) Not to make any occupancy of the Leased Premises contrary to law or contrary to any directions, rules, regulations, regulatory bodies, or officials having jurisdiction or which shall be injurious to any person or property.

(g) Not to permit any waste or nuisance.

(h) Not to use the Leased Premises for living quarters or residence.

LESSEE shall pay for any expense, damage or repair occasioned by the stopping of waste pipes or overflow from bathtubs, closets, washbasins, basins or sinks, and for any damage to window panes, window shades, curtain rods, wallpaper, furnishings, or any other damage to the interior of the Leased Premises.

All repairs, except those specific repairs set forth below which are the responsibility of the LESSOR, shall be made by the LESSEE at its own expense.

The LESSOR shall be responsible for making only the following repairs [check those that apply]:

sprinkler system

heating, ventilating or air-conditioning system serving the Premises if, and to the extent, installed by LESSOR

structural repairs to exterior walls, structural columns and structural floors which collectively enclose the Premises (excluding storefronts)

the roof over the Premises

Other:

Other:

Other:

7. FIXTURES AND TRADE FIXTURES. LESSEE shall make no changes, improvements, alterations, or additions to the Leased Premises unless approved in writing by LESSOR.

All improvements made by LESSEE to the Premises which are so attached to the Premises that they cannot be removed without material injury to the Premises, shall become the property of LESSOR upon installation.

8. SECURITY DEPOSIT: The LESSEE, contemporaneously with the first Rent installment, agrees to deposit with the LESSOR Dollars ($).

9. LESSOR’S LIEN: As additional security, LESSEE acknowledges, to the extent allowed by applicable law, the LESSOR’S right to hold and sell with due legal notice all property on or to be brought on the Premises in order to satisfy unpaid Rent, expenses, and utilities.

10. DEFAULT: Each of the following shall be deemed an Event of Default:

a. Default in the payment of Rent or other payments hereunder.

b. Default in the performance or observance of any covenant or condition of this lease by the LESSEE to be performed or observed.

c. Abandonment of the premises by LESSEE.

d. The filing or execution or occurrence of bankruptcy or insolvency events.

11. NOTICE OF DEFAULT. Notice of such event of default must be in writing and must either be hand delivered, mailed to the other party by U.S. Certified Mail, return receipt requested, or if unable to provide notice by these methods, if notice is from LESSOR to LESSEE by posting the notice on the front door of the Leased Premises.

Such notice shall contain a reasonably understandable description of the action to be taken or performed by the other party in order to cure the alleged default and the date by which the default must be remedied, which date can be not less than business days from the date of mailing the notice of default.

12. TERMINATION. Upon occurrence of any Event of Default, and after proper notice of default has been given, LESSOR may, at its option, give notice to LESSEE that this lease shall terminate upon the date specified in the notice, which date shall not be earlier than days after mailing or delivery of such notice.

13. ACCELERATION. LESSEE expressly agrees and understands that upon LESSOR’S termination of this Lease, the entire remaining balance of unpaid Rent for the remaining term of this Lease shall ACCELERATE.

14. REPOSSESSION. Upon termination of this lease as provided herein, or pursuant to statute, or by summary proceedings or otherwise, the LESSOR may enter forthwith, without further demand or notice to LESSEE, and resume possession of the Leased Premises.

15. DEFAULT BY LESSOR. In the event of any default by LESSOR, LESSEE shall have offered LESSOR () days in which to correct and cure the default or commence a good faith effort to cure such default.

16. RELETTING AFTER TERMINATION. Upon termination of this lease in any manner above provided, LESSOR shall use reasonable efforts to relet the Premises.

17. DAMAGES. Upon termination of this lease in any manner above provided, or by summary proceedings or otherwise, LESSEE shall pay to LESSOR without demand or notice the following:

(a) All Rent and other payments accrued to the date of such termination and a proportionate part of the rent otherwise payable for the month in which such termination occurs.

(b) All future Rent and other payments to be due under the terms of this lease to the extent Landlord has not been able to offset same by reletting the Premises within 30 days of termination.

(c) The costs of making all repairs, alterations and improvements required to be made by LESSOR hereunder.

(d) The attorneys’ fees and other costs.

18. EXCLUSIVITY OF LESSOR’S REMEDIES: The receipt of Rent after default, or after judgment or after execution, shall not deprive the LESSOR of other actions against the LESSEE for possession or for Rent or for damages.

19. LESSOR NOT LIABLE FOR INJURY OR DAMAGE TO PERSONS OR PROPERTY: The LESSOR shall not be liable for any injury or damage to any person or to any property at any time on said Premises or building from any cause whatever.

20. TAXES: Property taxes on the Leased Premises shall be responsibility of LESSOR. Taxes on the personal property of Lessee shall be the responsibility of LESSEE.

21. RIGHT OF RE-ENTRY: LESSOR shall have the right, by itself or agent or with others, to enter the Premises at reasonable hours to examine or exhibit the premises, or to make such repairs and alterations as shall be deemed necessary.

22. HOLDOVER: If LESSEE shall holdover after the expiration of the Term hereof, with the consent of LESSOR, express or implied, such tenancy shall be from month to month only.

23. NATURE OF RELATIONSHIP BETWEEN PARTIES. The sole relationship between the parties created by this agreement is that of LESSOR and LESSEE.

24. RIGHT OF LESSOR TO PAY OBLIGATIONS OF LESSEE TO OTHERS. If LESSEE shall fail or refuse to pay any sums due to be paid by it under the provisions of this lease, LESSOR shall have the right to pay any such sum or sums due.

25. MECHANICS AND OTHER LIENS IMPOSED BY LESSEE. LESSEE shall keep the Leased Premises and the improvements at all times during the term free of mechanics and materialmen’s liens and other liens of like nature.

26. CONDEMNATION CLAUSE: In the event that all or a part of the Premises is taken by eminent domain or conveyed in lieu of eminent domain, this lease will terminate effective as of the date that the condemning authority shall take possession of the same.

27. FIRE CLAUSE: The LESSEE agrees to notify LESSOR of any damages to the Leased Premises by fire or other hazard immediately upon the occurrence of such fire or other hazard or discovery of such condition.

28. WAIVER OF NONPERFORMANCE: Failure of the LESSOR to exercise any of its rights under this lease upon nonperformance by the LESSEE shall not be considered a waiver.

29. PAROL EVIDENCE CLAUSE: This instrument constitutes the final, fully integrated expression of the agreement between the LESSOR and the LESSEE, and it cannot be modified or amended in any way except in writing signed by the LESSOR and LESSEE.

30. SUBORDINATION: This lease is subordinate to the lien of all present or future mortgages that affect the Leased Premises.

31. INSURANCE: LESSEE shall, during the entire term of the lease keep in full force and effect a policy of public liability insurance with respect to the property and the business operated by LESSEE in the property.

General liability limits: Dollars ($) combined single limit, naming LESSOR as additional insured.

32. NOTICES. All notices and communications concerning this lease shall be mailed to the parties at the following addresses:

LESSOR

LESSEE

33. SALE BY LESSOR. In the event of a sale or conveyance by LESSOR of all or part of the Leased Premises, the same shall operate to release LESSOR from any future liability.

34. COURT ACTION, ATTORNEY’S FEES AND COSTS. If suit should be brought for damages, to enforce the payment of Rent, to recover possession of the Premises or to enforce any provision hereof, the losing party agrees to pay to the prevailing party reasonable costs and expenses incurred in prosecuting these suits.

35. ASSIGNMENTS AND SUB-LEASE: The LESSEE hereby agrees not to assign this lease voluntarily or involuntarily, nor to sub-lease the Premises or any part of the Leased Premises, without the written consent of the LESSOR.

36. INTERPRETATION: Whenever any word is used in this agreement in the masculine gender, it shall also be construed as being used in the feminine and neuter genders, and singular usage shall include the plural and vice versa.

37. MODIFICATION: Any modification or amendment of this agreement shall be in writing and shall be executed by all parties.

38. SEVERABILITY CLAUSE: If any term, covenant, condition, or provision of this lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder shall remain in full force and effect.

39. LAW TO APPLY: This lease shall be construed under and in accordance with the laws of the State of Texas.

40. ADDENDUMS. The following addendums are attached to this lease and shall be initialed by the parties.

Option to Purchase

Arbitration Agreement

Other:

None

41. OTHER PROVISIONS:

All documents such as schedules, exhibits and like documents are incorporated herein and shall initialed by all parties. If LESSEE is a corporation, each person executing this lease represents and warrants that he is duly authorized to execute and deliver this lease on behalf of the corporation.

In Witness Whereof, the undersigned LESSOR and LESSEE execute this lease to be effective as of the day and date first above written.

LESSEE(s)

Signature:

Signature:

LESSOR(s)

Signature:

Signature:

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What a Lease Agreement of Personal Property Is and When It’s Used

A Lease Agreement of Personal Property is a written contract that sets out the terms under which one party (the owner or lessor) grants another party (the lessee) the right to possess and use specified movable property for a defined period in exchange for payment or other consideration. Commonly used for equipment, vehicles, furniture, and business assets, the document identifies the property, rental rate, term, delivery and return terms, maintenance responsibilities, and remedies for default. Clear documentation reduces disputes and clarifies ownership and security interests during and after the lease term.

Why a Formal Lease Agreement of Personal Property Matters

A written lease protects both parties by documenting property description, payment schedule, insurance and repair obligations, and default remedies. It creates clear evidence of rights and duties, facilitates enforcement if disputes arise, and supports financing or security filings where permitted. Properly executed agreements also help with tax, insurance, and audit compliance and can specify governing law and dispute resolution to reduce ambiguity.

Why a Formal Lease Agreement of Personal Property Matters

Who Typically Prepares and Signs These Lease Agreements

The Lease Agreement of Personal Property is used by a range of parties depending on the asset and transaction.

  • Equipment lessors: leasing companies and manufacturers providing short- or long-term equipment use to businesses, often including maintenance and insurance obligations.
  • Small businesses: retailers, contractors, and service providers who rent machinery, tools, or vehicles to operate without capital purchase.
  • Individual owners: private parties leasing high-value items such as recreational vehicles or specialty equipment for personal or commercial use.

Parties should confirm authority to bind the organization and any lender or lienholder interests before signing.

Core Elements to Include in a Professional Lease Agreement of Personal Property

A complete lease should cover identity of parties, clear property description, term and renewal mechanics, payment and fees, security interest or deposits, and default/termination procedures. Including these elements reduces interpretive risk and supports enforcement and third-party steps like UCC filings where applicable.

Parties

Full legal names and business entities for lessor and lessee, including state of formation for companies and authorized signatory details.

Property Description

Detailed description including make, model, serial number, condition, location and any accessories or consumables included in the lease.

Term and Renewal

Start and end dates, automatic renewal terms or termination notice periods, and early return or extension conditions.

Payments and Fees

Amount, due dates, accepted payment methods, late fees, taxes, and responsibility for reimbursable costs such as transport.

Security Interest

Whether a security deposit or lien is taken, conditions for its release, and whether a UCC-1 financing statement will be filed.

Default and Remedies

Events of default, cure periods, repossession rights, damages, and whether attorney’s fees or collection costs apply.

Required Information and Fields at a Glance

Lessor Name: Legal entity or full name
Lessee Name: Legal entity or full name
Property ID: Make/model/serial
Lease Term: Start and end dates
Payment Terms: Amount and due dates
Governing Law: State chosen

Step-by-Step: Completing a Lease Agreement of Personal Property

Use this sequential checklist to prepare, review, and execute the agreement so both parties clearly understand obligations and risk allocation.

  • 01
    Draft: Populate parties, property details, term, and payment sections.
  • 02
    Review: Confirm serial numbers, insurance requirements, and liens with counsel if needed.
  • 03
    Sign: Execute in the presence of required witnesses or notary if state law or lender requires it.
  • 04
    Record: File UCC-1 where a security interest exists and distribute final copies to stakeholders.

Where to Send or File the Completed Lease

After execution, deliver copies to the other party, any secured lenders, and retain originals in your records. Some steps are jurisdiction-dependent.

  • To the Lessee: Provide an executed copy and payment receipt immediately after signing.
  • To the Lessor: Record the original and note any security deposit or insurance certificates received.
  • UCC Filing: File UCC-1 with the state SOS if the lessor takes a security interest in the property.
  • Insurance Carrier: Send certificate of insurance naming lessor as additional insured where required.

How to Configure an Online Lease Workflow for Electronic Execution

Set up the digital workflow to capture consent, signatures, and any required authentication before sending to signers.

Field Configuration
Signature Field Required; attach date field
Authentication Email or SMS OTP; stronger KBA for high-value leases
Attachments Include photos, maintenance records, or invoices
Audit Trail Enable full activity logging

Technical and Integration Considerations for eSigning

Confirm platform support for required file formats, signer authentication, and integrations before sending the agreement electronically.

  • File Formats: PDF and DOCX widely supported
  • Integrations: CRM, ERP, and cloud storage connectors
  • Authentication: Email, SMS, or KBA options

Choose a provider that supports ISO-standard PDFs, audit trails, and the integrations you rely on; verify HIPAA or 21 CFR Part 11 compliance if applicable.

eSignature Vendor Pricing and Capability Snapshot

Compare basic pricing and common enterprise capabilities for eSignature vendors often used to sign lease documents. signNow is listed first per comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day free trial, no card No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes Yes
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap None 100 envelopes/user/year limit Varies by plan Varies by plan Varies by plan

Common Mistakes to Avoid When Preparing a Lease

  • Vague property descriptions that omit serial numbers or accessory lists, which can lead to disputes about exactly what was leased.
  • Failing to record or disclose existing liens or security interests, risking conflicting claims and enforcement complications.
  • Leaving insurance, maintenance, and return condition vague, causing disagreements over repair costs and wear-and-tear responsibility.
  • Not confirming signatory authority for corporate parties, which may render the agreement voidable or create enforcement challenges.

Legal and Financial Risks of an Incorrect or Incomplete Lease

Enforceability Risk: Incomplete names or signatures
Lien Disputes: Unperfected security interest
Regulatory Fines: Noncompliance with industry rules
Insurance Gaps: Insufficient coverage or naming errors
Tax Exposure: Misreported payments or deductions
Repossession Cost: High recovery and legal fees

Practical Tips for Accurate and Efficient Lease Completion

Adopt these practical measures to improve clarity, speed execution, and reduce downstream risk when preparing leases.

Use a Standard Template
Begin with a vetted template and customize only the specifics to keep language consistent and reduce drafting errors.
Verify Identity and Authority
Confirm legal names, signatory authority, and corporate status to ensure the correct parties are bound by the agreement.
Attach Exhibits
Include condition reports, serial-numbered inventories, maintenance schedules, and insurance certificates as numbered exhibits.
Record Security Interests
File UCC-1 financing statements promptly when a security interest is taken to protect priority rights.

Supporting Documents and Export Options to Keep with the Lease

Preserve related documents and export signed agreements in industry-standard formats so they remain admissible and portable for audits or enforcement.

Condition Report

A dated, signed document or photo exhibit documenting the property’s state at delivery, which supports damage and wear disputes and can be stored as PDF/A for long-term retention.

Insurance Certificate

A certificate naming the lessor as additional insured or loss payee where required; retain copies and update on renewal to avoid coverage gaps during the lease term.

UCC Filing Record

Evidence of any UCC-1 filing and filing number for security interests; retain confirmation and link it to the lease for enforcement and priority checks.

Signed Agreement Export

Save final signed documents as PDF (searchable, PDF/A where possible) and maintain an audit trail with timestamps and signer attribution for legal admissibility.

Real-World Examples of Personal Property Lease Use

Two concise customer scenarios show how documented leases help operations and compliance in practice.

Optica Ventures LLC

A mid-sized equipment lessor standardized lease templates to accelerate onboarding and reduce disputes.

  • Streamlined terms and photo exhibits were added.
  • The result improved turnaround and customer clarity, letting the company execute leases remotely while keeping documented condition records for each asset.

Martin Properties

A property manager used online leases for furnished unit furniture to simplify move-ins.

  • Leases included inventory and damage holdback.
  • This reduced tenant disputes about preexisting damage and allowed quick deposit reconciliations after checkout.

Key Timing Considerations and Deadlines

Observe these timing points for payments, filings, and recordkeeping to avoid penalties and preserve rights.

Payment Due Dates:

Stick to scheduled payment dates in the agreement to avoid default.

UCC-1 Filing:

File promptly after execution when a security interest is created.

Record Retention:

Retain signed lease for at least 3 years after termination for tax purposes.

Insurance Renewal:

Confirm coverage renewals before previous policy expiration dates.

Dispute Notice Periods:

Follow contract notice windows for cure and termination to preserve remedies.

Frequently Asked Questions About Lease Agreements of Personal Property

Answers to common execution, enforceability, and electronic signing questions for personal property leases.


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