Mastering the Art of Lease or Rental Agreement

by Alexander Gordon - Date: 2006-12-26 - Word Count: 435 Share This!

Before mastering the art of lease or rental agreement, one has to understand the basics of it. 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 in the possession up to a certain period. Same kind of agreement made between the tenant and the subtenant is known as sublease.

Oral Agreement Can Lead to Many Problems Later:

Although it is possible to have oral agreement for the period of less than one year and written agreement are required for longer period, yet if you are interested in mastering the art of lease or rental agreement, you must learn having only written agreements. Any misunderstanding in an oral agreement may create severe problems leading to the dispute between the landlord and tenant. After the end of agreed period tenant need to give back the possession and rights of using to the landlord. However, 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 Lease and Rental Agreement:

Though the rental agreement and lease used interchangeably, there are few differences between the two. The basic difference is in the duration for which agreement is made. Rental agreements are usually of very short duration that is 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 agreement. Renewal takes place automatically in case of rental agreement while in lease it does not happen.

Include Names of All the Tenants in Agreement:

Mastering the art of lease or rental agreement is very important not only because it is a legal document. In addition, 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 making a rental agreement or lease that include the names of every single adult tenant who is going to live in the property for the said period. In this way, you will make every tenant responsible for the payments and all other terms.

Mastering the art of lease or rental agreement also require that you mention 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 in the property. Neither it will be possible for him to sublet it. The amount of rent, time of payment and mode of payment must be specifically mentioned in the terms of agreement.

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