Lease Agreement OR Rental Agreement
A lease agreement or a rental agreement is a vital legal document that should be completed prior to a landlord renting property to a tenant.
It is a contract between a landlord and a tenant that covers the renting of property for long periods of time, usually a period of 12 months or more. The lease agreement is very specific in detailing the responsibilities of both parties during the lease and it includes all the necessary information to ensure that both parties are protected.
Lease Agreement is effective for the specific time stated in the agreement and is then considered ended. If the tenants wish to remain in the property, both parties must enter into a new lease agreement.
A lease agreement advantageous to a landlord by providing the stability of guaranteed, long-term income. It is advantageous to a tenant because it locks in the rental amount and length of lease and cannot be changed even if property or rent values rise.
A rental agreement differs from a lease agreement in that it is not a long-term contract and usually occurs on a month-to-month basis, either the tenant or the landlord can alter the terms of the agreement at the end of each month. 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 30-day notice to quit, however, prior to requesting the tenant leaves the property.