This week’s spotlight: the hidden danger of handshake deals and undocumented promises. Many landlords make verbal agreements—about repairs, rent reductions, move-out dates, or pet policies—without ever putting them in writing. When memories fade or relationships sour, these informal deals can become costly legal battles. Here’s why this mistake matters, and how to avoid it.
Why Verbal Agreements Are Dangerous
Verbal agreements and casual promises may seem harmless, but they create:
- Confusion over what was actually agreed to
- Disputes about rent, repairs, or lease terms
- Difficulty enforcing your rights if a tenant changes their story
- Legal exposure if a court believes the tenant’s version
- No paper trail for your own protection
Common Scenarios Where This Mistake Happens
- Promising to allow a pet “just this once” without a written addendum
- Agreeing verbally to delay rent or waive late fees
- Letting a tenant move out early without documenting terms
- Making repair commitments over the phone or in person
- Allowing subletting or extra occupants without a lease update
Tip: If it’s not in writing, it’s almost impossible to prove in court.
Legal Risks and Real-World Consequences
- Courts may enforce a tenant’s version of a verbal agreement if you have no documentation
- Verbal promises can override written lease terms in some jurisdictions
- You may lose a security deposit dispute if you can’t prove your expectations
- Undocumented rent reductions or repairs can lead to claims of retaliation or discrimination
Case Studies: When Verbal Agreements Backfire
Case 1: The Pet Exception (California)
A landlord verbally allowed a “temporary” pet. The tenant stayed for two years with multiple animals. When the landlord tried to enforce the no-pet clause, the court sided with the tenant, citing a lack of written evidence.
Case 2: Rent Reduction Dispute (Texas)
A landlord agreed over the phone to reduce rent for one month after a repair delay. The tenant claimed it was a permanent reduction. With no written proof, the landlord lost $1,200 in court.
Case 3: Early Move-Out Misunderstanding (New York)
A tenant said the landlord agreed to let them out of the lease early with no penalty. The landlord denied it, but the judge found the tenant’s testimony credible and denied the landlord’s claim for lost rent.
Best Practices: How to Avoid This Mistake
- Put Everything in Writing: Confirm all agreements, changes, or promises in an email, text, or lease addendum.
- Use Written Lease Addenda: For pets, repairs, rent changes, or other exceptions, have both parties sign a simple addendum.
- Follow Up Verbal Conversations in Writing: After a phone call or in-person chat, send a recap email: “To confirm our conversation…”
- Document Repairs and Promises: Keep a log of all requests, responses, and timelines.
- Be Consistent: Apply the same documentation standards to every tenant.
- Store All Communications: Save emails, texts, and letters in your tenant file.
Documentation Checklist
| Agreement Type | How to Document | Best Practice |
|---|---|---|
| Lease Changes | Signed addendum | Both parties sign and date |
| Repair Promises | Email or written log | Include date and scope of repair |
| Rent Adjustments | Email confirmation | State amount, duration, and reason |
| Move-Out Terms | Written agreement | Specify dates, deposit, and conditions |
| Pet or Occupant Exceptions | Signed addendum | List allowed pets/people and terms |
Cheat Sheet: Documenting Tenant Agreements
| Scenario | Documentation Needed | Why |
|---|---|---|
| Pet Allowance | Written addendum | Prevents future disputes |
| Rent Change | Email or letter | Sets clear expectations |
| Repair Commitment | Email or text | Proof of timeline and agreement |
| Early Move-Out | Signed agreement | Protects against lost rent claims |
| Subletting/Roommates | Written approval | Clarifies who is allowed |
AAOL Action Plan: Protect Yourself from Verbal Agreement Pitfalls
- Never rely on handshake deals—always put agreements in writing
- Use templates and addenda for all changes
- Follow up all conversations with a written summary
- Keep a digital record of all tenant communications
- Join AAOL for templates, legal updates, and expert support
We stand with you. We fight for you. The American Association of Landlords is your partner in building a professional, dispute-free rental business.
Legal Disclaimer
This article provides general information about landlord-tenant law and documentation practices. It is not legal advice. Laws may change or vary by location. Always consult a qualified attorney for guidance on your specific situation. AAOL and the author assume no liability for actions taken based on this information.
About AAOL
The American Association of Landlords advocates for the rights and interests of rental property owners across the United States. We provide resources, education, and support to help landlords navigate complex legal issues, protect their investments, and maintain compliant properties. Visit aaol.org to become a member and access exclusive landlord resources.
