LEASING A PROPERTY – LEASE AGREEMENTS

When you were a child you probably lived in a home with your family. You never really thought about leases, rent, rates, bills, and all of the responsibilities that comes with running a household. But one day you made the move to be independent. You left your family’s home and had to find a place to live. If you were like most of us, you did not have the money to buy a property, so the most obvious option was to find a property to rent.

What does it mean to rent? To rent means, “pay someone for the use of something, typically a property, land, a flat or a house.” The terms of a rental Agreement should be captured, in writing, in a Lease Agreement. What is a Lease Agreement? A Lease Agreement is a contract between a Landlord (also called a Lessor) and a Tenant (also called a Lessee). The Landlord owns a certain property and for an agreed amount of money, which is paid to him monthly, he gives the full use of his property to tenant. The Lease Agreement is most often valid for a year, but this can be for longer terms, if both parties want that. When the Lease Agreement is about to expire, it may be renewed, with mutual consent. The renewed Lease Agreement can be for the same terms and conditions as the first lease, or adjustments may be negotiated.

The Lease Agreement gives the tenant the right to use the property. The tenant has the right to “quiet enjoyment of the property”. That is he has that right to use the home, to not be harassed, and to be free to live peacefully.

The Lease Agreement will list the name and details of the Landlord, the tenant, and the agent, if any. The contract should explain the responsibilities of both parties. It will state the amount of rent, the cost of the security deposit, where the rent should be paid, the expected date of payment, and who will be responsible for the various bills. The lease will give the address of the property. It will give the starting date, the ending date, and the conditions for renewal. The agreement will show who is liable for property maintenance and for damages. The lease should outline the conditions for the return or the loss of the security deposit. The Lease Agreement defines the rights and responsibilities of both the landlord and the tenant.

One of the dangers of using a bogus estate agent is that there often is no Lease Agreement. Without this contract in place often disputes and disagreements will come up, which can lead to a total destruction of the relationship between the parties. These issues can be difficult to resolve, even in a court of law. A successful rental relationship is more likely to be achieved with a clear, professional Lease Agreement in place. Many tenants enter into a lease without the safety and protection of a Lease Agreement. This is not a good idea! Any Registered Real Estate Agent knows how to draw up a Lease Agreement that is clear, concise, and professional. I believe that honest communication, a clear Lease Agreement, and the good will of both parties will lead to a far greater chance of a prosperous and peaceful relationship. We all have enough trouble in life, save yourself some grief by having a professional Lease Agreement in place.

By Jonathan Thompson

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