Rental Lease Agreement

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What should I include in a Lease Agreement?

This agreement is a sample rental agreement, that is also suitable for lease. You might ask yourself: lease or rent, which is better? When you are considering renting out a property, you will need to decide if you wish to offer your tenant(s) a lease or a rental agreement. However, it looks that these terms are often used interchangeably, their meanings differ. Before you rent out your property, be sure to take into account the differences between a lease and a rental agreement so you can make the best choice for your situation.

What is the difference between rent agreement and lease agreement?
Here are the most important differences everyone who is asking himself or herself this question should understand:

Rental Agreements; A rental agreement differs from a lease agreement because it is not a long-term contract and usually occurs on a monthly basis. Such a month-to-month lease agreement expires and then renews each month upon agreement of the parties involved. So they often have no long-term requirements. At the end of each thirty-day period, both you and your tenant are free to change the rental agreement (subject to local rental laws).

Rental agreements, therefore, have more leeway. However, either the tenant or the landlord can alter the terms of the agreement at the end of the period. Think about changes like raising the rent asking the tenant to vacate the property or modifying the initial terms agreed. However, often both landlord and tenant need to mutually agree and give a period of notice before any modifications can be made. 

Another advantage is that rental agreements are useful if you’re having a problem attracting new tenants, or if your property is in an area that caters to students or professionals who move around often. A rental agreement typically renews automatically after each rental period has finished. The landlord has the option to raise the rent or request that the tenant quit the premises without violating the rental agreement. A landlord must give a proper notice to quit, however, prior to requesting the tenant leaves the property.

Lease agreements; In comparison to rental agreements, a lease has a set term, often for long periods of time, usually a period of 12 months, during which the tenant agrees to rent the property. A lease agreement is a contract between a landlord and a tenant that covers the renting of property, usually or more. The lease agreement is very specific in detailing the responsibilities of both parties during the lease and it includes all the necessary terms to provide protection to both parties.

During the duration of the lease, both must adhere to the lease agreement. For example, tenants agree to make monthly rent payments and follow the other obligations in the lease.

The length of the lease and the amount of monthly rent are documented and cannot be changed that easily. This ensures that the landlord cannot at random just raise the rent fee and the tenant cannot just leave the property whenever he or she wants to, without any consequence.

The lease agreement is effective for the specific time mutually agreed and is then considered ended. If the tenants wish to remain in the property, both parties must enter into a new agreement. So, therefore, neither party is able to change any terms until the lease period expires. Unless both parties mutually agree to change the terms. A tenant can’t vacate the property without breaking its lease, in which case they can be held liable for the rest of the rent due under the lease, or can be required to find someone else to take over the lease.

After the lease agreement is finished, the landlord is not obligated to renew the lease again based on the same terms. He or she is free to change terms and rental amounts if desired. For this reason, some tenants prefer to sign a longer-term lease if the monthly rent is very reasonable and in an area where rents are likely to increase during the term of the lease. Leases are useful for those landlords who want to lock-in a tenant for a specific period of time. If you have a mortgage payment to meet, for instance, knowing you’ll have a tenant for the next year can help you budget your expenses. Most tenants are familiar with long-term leases and will not have a problem committing or rent values rise. 

Legal communication is essential to individuals and companies to ensure truthful, accurate information exchange and enable morally-correct decision making. This is important to give consideration to how to communicate and how to remain lawful in your day-to-day business activities. 

Therefore, communication in situations that involve legal complications, request extra attention. Using this easy-to-modify agreement helps to make a perfect document for the lease you are about to agree on. This template covers the most important subjects and will help you to structure and communicate in a professional and legal way with those involved. The landlord shall return the entire deposit to the Tenant within 15 days after retaking possession or shall return so much of the deposit as exceeds any damages done to the property during the Tenant’s residence, normal wear and tear expected, and any unpaid rent. We, the undersigned, agree to this Lease.

Download this professional Lease Rental Agreement template now and save yourself time, effort, and possibly reduce the lawyer fees in order to become more successful.

Nothing on this site shall be considered legal advice and no attorney-client relationship is established.

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