When a property owner and a tenant sign a rental agreement, it is called a head lease. In this agreement procedure, the tenant is the head lessee and is responsible for the lease terms. In a head lease, no third party or mediators are involved. Here, only two parties are involved –the owner of the property and the tenant.
Signing in a head lease gives the tenant the authority to sublease the property if they want. They also enjoy many other amenities for using the rental property from their landlord. The tenant can continue to use the rental property for a long time without worrying about repair or maintenance expenses.
Here, the landlord or property manager is responsible for conducting all kinds of repair services to keep it in tip-top condition.
A head lease is a rental agreement that a tenant and a property manager sign. Here, the tenant is the head lessee, and they are responsible for the terms of the contract. In a head lease, the tenant can directly negotiate with the landlord.
This direct negotiation facility allows the tenant more flexibility in matters of long-term planning, for instance, renewing the lease, expansion rights, and the lease duration. The tenant and landlord should negotiate the expansion terms before signing the agreement.
In a head lease, the tenant can sublease their space if they want. Therefore, signing a head lease allows the tenant to enjoy many benefits. In this tenancy system, the landlord offers many incentives to encourage them.
They may offer free rent, improvements to the tenant office spaces, reconfiguring the premises, and discounted parking lots. Some landlords even go to the extent of designing and building the rental space per the tenant needs.
Signing in a head lease brings many benefits to the tenant. As they are the head lessee of the agreement, this lease procedure gives them the right to negotiate and rent a property for a suitable price.
Through this agreement process, landlords offer their tenants many attractive amenities to make them stay for a long time. So naturally, the tenant and the landlord want to be in a long-term rental relationship, as finding another suitable house or a trustworthy tenant is equally tricky.
Builders and real estate developers can enjoy a profitable rental business by developing apartments and renting them to long-term tenants. Furthermore, applying a head lease will attract more potential clients as such an agreement brings many advantages to the tenants.
