A lease is a written agreement between a property owner and a tenant that enables the tenant to use the property for a particular period. In exchange, the property owner receives a monthly payment from the tenant.
Lease agreements are vital in real estate transactions as tenants and property owners depend highly on these businesses. A written lease agreement eradicates any future disputes between both the parties involved as it mentions all the terms and conditions, payable rent amount and the responsibilities of both parties.
A lease agreement enables an individual or a family to have a safe home without paying any substantial down payment. They can continue to use the property for as long as they want in exchange for a small monthly fee. As for the landlords, they can make the most of their property by leasing it without having to invest in frequent repairs or maintenance.
A lease is a contract between two parties in which one party agrees to rent an asset for a particular period and pays the owner for the use of the property. A lease agreement allows the tenant to utilize the property and guarantees the owner regular payments for the specific period of exchanges.
The duration of a property lease is usually 6 to 12 months. Upon the expiry of a rental lease, the owner and the tenant can either renew it or continue with a “month to month” rental system.
Important Points Of A Lease Agreement:
• The address and proper dscription of the property
• Names of the landlord and the tenant
• The amount of rent payment
• The amount of deposit payable by the tenant
• Utilities available
• Terms of the agreement
• Duration of the agreement
• Rules for repairs and maintenance
• Policies for pets
Both the parties are obligated to comply with the terms of the agreement. If any party violates the terms of the lease and creates unfavorable situations for the other party, the other party must see legal support. While tenants sign a lease agreement and use a rental property, they are liable to maintain and keep it intact. They may have to pay a penalty to the owner if they cause any harm or damage.
Leasing a property is one crucial aspect of making real estate transactions. In addition, leasing a suitable property for a short term or long term becomes necessary for those who migrate to upgraded cities for work purposes. On the other hand, leasing a property gives the owners a stable income.
Individuals who need a safe and comfortable house near their workplace but do not intend to settle down permanently can choose to sign in a rental agreement. This is also a suitable option for those who want to use a functional property but do not have the funds to buy their own home.
In other words, leasing is essential for the tenants and the landlords. Real estate developers and property owners can manage a profitable business by organizing adequate properties for leasing.
