Mastering The Art Of Lease Or Rental Agreements

Before mastering the art of lease or rental agreement, one has to understand the basics behind these terms. A lease or a rental agreement refers to an agreement that a tenant and landlord sign authorizing the tenant to use the said property and to keep it in possession for a certain period. The same kind of agreement made between the tenant and the subtenant is known as a sublease.

An Oral Agreement Can Lead To Many Problems Later Although it is possible to have oral agreements for a period of less than one year a written agreement is required for a longer period. If you are interested in mastering the art of lease or rental agreement, you must learn to make only written agreements. Any misunderstanding in an oral agreement may create severe problems leading to disputes between the landlord and the tenant.

After the end of the agreed period the tenant needs to give back the possession and rights of use to the landlord. A definite amount of money is specifically mentioned in the agreement that a tenant pays to the landlord. This amount is popularly known as rent. Difference Between A Lease And A Rental Agreement Though rental agreement and lease are used interchangeably, there are a few differences between the two.

The basic difference is in the duration for which the agreement is made. Rental agreements are usually of very short durations such as 30 days. On the other hand, the term of lease is normally from six to twelve months. Another difference is related to the renewal of the agreement. Renewals take place automatically in the case of rental agreements while in lease agreements they do not happen. Include The Names Of All The Tenants In The Agreement Mastering the art of a lease or rental agreement is very important because it is a legal document.

Also, it has all the practical details of the transactions that are going to take place between the landlord and tenant. The most important point to remember when making a rental agreement or lease agreement is to include the names of every single adult tenant, who is going to live in the property for the said period. In this way, you make every tenant responsible for the payments and all the other terms. Mastering the art of the lease or rental agreement also requires that you mention the names of all the people who are going to live in the property. This way, you can prevent the tenant from moving in any other relative or friend into the property.

It will not be possible for the tenant to sublet it. The amount of rent, time of payment, and mode of payment must be specifically mentioned in the terms of the agreement.

David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com