When agreeing upon the renting of different types of property, tenants and landlords signify this mutual intention by signing a lease agreement. The various aspects that are included in these documents will vary from lease to lease. There are, however, certain basics of leases that should be known to understand general lease agreements.
Different Property Types
An important first aspect to consider about leases is that there are a variety of different property types that can be allotted to a tenant in a lease agreement, changing the type of lease agreement being decided upon. For example, residential leases relate to properties such as houses or apartments. Commercial leases, on the other hand, pertain to office or retail spaces. Leases for advertising space, such as on billboards, industrial leases, and leases for space on properties or rooftops for cell phone towers are less common types of leases.
Different Tenant Types
Just as there are different varieties of leases, there are also different types of tenants for each lease. The most common type may very well be an individual seeking to dwell in a residential space for rent. Also rather common is the circumstance of a retail store seeking to lease room in which it can oversee the operation of a business; doctors, offices, and businesses may seek space to operate their practices in a similar vein. Landlords might decide to lease land out for tenant parking or to a farm to put to agricultural use.
A Lease’s Purpose
The simple purpose of a lease is to protect both the tenant and the landlord; it does this by telling each side their expected responsibilities and obligations. As explained by landlord tips,leases include the agreement’s length, monthly or yearly payment for rent, how rent will be collected, and such matters as upon whom the burden of necessary repairs falls. If either tenant or landlord is guilty of breaking any of the lease’s terms, the lease is not binding any longer.
Some people confuse the terms lease and rental agreements. The two are both contracts that relate to renting. However, a rental agreement is typically only for 30 days, whereas leases range from six months to five years, with the most common term length being one year. Leases make these routine rental agreements feasible.