The Basics of the Lease Agreement
The Basics of the Lease Agreement
Letting, sometimes referred to as renting or hiring, is an arrangement in which a rent is paid for the use of a property, service or good owned by someone else. It is similar to renting except that it involves a contract between both the tenant and the owner of the property. A contract is basically a written document. A contract may be in the form of a lease agreement, a rental contract or a mortgage. In general, a lease has two parties: the landlord and the tenant.
Lease agreements are one way landlords can get tenants who will pay for their rent. Some landlords, however, prefer to hire tenants. A tenant is also referred to as a lessee, and they are responsible for paying all the property taxes, utility bills and other monthly charges incurred on the property. Sometimes, a landlord and a tenant have separate leases and if so, they need to be read carefully before signing them. For example, a lease may state that the tenant will pay a specific amount of rent for a specific period of time or that the tenant will pay an agreed upon amount over a specified period of time.
Renting is a common business arrangement today. Many people rent out property, especially in urban centers, because they don’t have enough land to buy a house or apartment on their own. However, the renting is also becoming more common in suburbs and rural areas, due to the economic recession. Many people are looking for ways to save money, and that is why there are many rental property owners who are willing to let out their property at discounted rates in order to make money. A rental property owner also needs to have an assurance from his prospective tenant that he will pay back the rent.
The tenant is the one who pays the rent. He is usually the one who decides how much the rent will be for the period of time he is occupying the property. This is done by calculating the actual cost of living in the area and multiplying it by the number of people living in the area. In many cases, the tenant may be required to pay some type of service fee or security deposit. to the owner of the rental property.
Because there are many renters in any area, there are a number of property owners who choose to advertise their property and let them out. For example, a single person may buy a house and rent it out to a group of friends. In this case, the house owner would have to advertise the house and post ads in newspapers, on bulletin boards and in other public places in order to find renters. The same goes for apartment complexes. Property owners must advertise their property for a period of time to find tenants and can even go thru rental agencies and brokers to find potential tenants. The renters then look for apartments and rent them out to people who are interested.
When an apartment building is full, it becomes necessary for owners to put ads in the paper, in the classifieds section of the newspaper, and on bulletin boards, in local radio stations and television or on the Internet to find another place to rent the property. In order to rent out the apartment building to another tenant, the owner must offer the new tenant a fair price for the apartment. The new tenant will then look for an apartment in the area and make arrangements with the owner to buy the property.