The lease is your operating agreement. A generic template you found online is not a lease — it is a liability. Here is what a well-built lease actually covers.
Landlord-tenant law is state law. A lease that is perfectly legal in Texas may contain clauses that are unenforceable or outright illegal in California or New York. Generic national templates routinely miss jurisdiction-specific requirements around notice periods, entry rights, security deposit limits, and disclosure obligations. Use a lease written for your state and reviewed by someone who knows your state's statutes.
Before handing over keys: collect the signed lease from all adult tenants, first month's rent, and the security deposit. Do not hand over keys until all three are in hand. Walk through the unit with the tenant and complete a written condition report — both parties sign it. Take timestamped photos of every room and surface. This documentation is your protection at move-out.
Many states require security deposits to be held in a separate account and prohibit commingling with operating funds. Some require notifying tenants of the account location. Know your state's rules before you cash that check.