Rental application is a form filled by a prospective tenant, based on which the landlord decides to rent the unit to the tenant. The past data, earning capacity and many other factors, let the landlord can decide whether to lend the property or not. Apart from the basic identity information, landlord can ask salary, bank account details. The landlord has to judge the financial stability of the prospective tenant. History of foreclosure, bankruptcy, late rental payments; can all be indicators of poor finical stability.

Lease agreement is a contract or an agreement between landlord and tenant. It can be a written one or an oral agreement but it is best to have a written lease. A written lease agreement should be drafted before the tenant starts using the property. A lease agreement contains all the obligations which the tenant and the landlord agree upon. Violation of any term during the lease term may result in eviction of the tenant and ending of lease. When a lease agreement is in place, if things go wrong then the landlord can go to court and seek eviction of the tenant.

Since each state has different laws pertaining to security deposits, eviction and entry notices, it is best to seek help of reputable agencies in drafting lease agreements. There are many online sites to help landlords out with rental applications, lease agreements and many other legal forms.