For landlords, the lease agreement is the single most important document in the rental relationship. Many landlords either download a lease from the internet or use AI without confirming compliance with Iowa law. While these leases may appear sufficient, they often contain provisions that are unenforceable or create unintended risk.
Iowa law places clear limits on what can be included in a lease. Iowa Code § 562A.11 prohibits terms in a lease where the tenant or landlord agree to pay the other party’s attorney’s fees. If a landlord willfully includes such a provision knowing it’s prohibited, a tenant may be entitled to damages of up to three months’ rent and reasonable attorney fees. While parties can’t agree to attorney’s fees in the lease, the court may still award fees to the prevailing party in certain situations.
Late fees are another area where landlords need to be careful. Iowa law limits the amount that can be charged. For rental agreements where the monthly rent is $700 or less, late fees may not exceed $12 per day or a total of $60 per month. For rental agreements where the rent exceeds $700, late fees may not exceed $20 per day or $100 per month. Lease provisions that exceed these limits are not enforceable.
Certain disclosures are also required before the tenancy begins. For example, if the property was built before 1978, landlords must comply with federal lead-based paint disclosure requirements, including providing the EPA pamphlet and disclosing any known lead-based paint hazards.
A properly drafted lease does more than comply with the law. It clearly defines expectations, reduces ambiguity, and simplifies enforcement if issues come up. Given the time and investment involved in owning and managing rental property, taking the time to ensure the lease is compliant and well-structured is one of the most practical steps a landlord can take to protect that investment.
Nick A. Sailer is experienced in handling landlord-tenant matters. If you have questions, contact the firm at 563-927-6425.
Nick Sailer Law, P.C. blogs, legal updates, and other content are for educational and informational purposes only. This is not legal advice and does not create an attorney-client relationship between Nick Sailer Law, P.C. and readers. Readers should consult an attorney to understand how this content relates to their specific situation. You should not use Nick Sailer Law, P.C. content as a substitute for legal advice from a licensed attorney.
