An agreement is a negotiation between two parties. The purpose of the lease agreement is to identify the scope and limitations of the items that they agreed upon. One of the most common processes where an agreement is used is during a lease transaction. A lease agreement can be used for various lease transactions.
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The purpose of lease agreements is also to outline the responsibilities of both the lessor and the lessee. A written agreement is necessary in every lease transaction. If you are looking for lease agreements, there are printable samples available on this page to help you format and create your agreement.
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Printable Rental Lease Agreements
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Commercial Lease Agreements
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What Are the Elements of a Lease Agreement?
- Names – a lease agreement contains the names of both the lessor and the tenant.
- Length of Tenancy – it should also indicate the length of the lease. The duration of a lease usually lasts for a year or more. A lease agreement can also last for a minimum of six months depending on the negotiation.
- Amount – a lease agreement should include the amount agreed upon by both parties.
- Payment Details – this outlines the methods that a tenant can pay the lessor. For example, a tenant can pay through issuing checks. Also include additional fees that a tenant may need to pay.
- Security Deposit – this refers to the amount that a tenant or lessee has to deposit for the purpose of protection for the lessor in case a tenant may cause damage to the property.
- Repairs and Maintenance – since a tenant is only leasing the property, the landlord is responsible for fixing any repairs and maintenance.
- Termination – this section lists the terms of eviction should the tenant fail to do what was agreed upon.
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Business Lease Agreements
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Benefits of Lease Agreements
Signing a lease agreement before doing any transaction is essential to ensure that both parties are protected should anything happen. A lease agreement can have several benefits to both the tenant and the landlord. For example, lease termination agreements are useful when both parties decide to terminate the lease contract. The benefits of having a lease agreement are as follows:
- It allows the lessee and the owner of the property to know their minimum responsibilities for each other within the lease duration.
- Lease agreements provide a concrete listing of the regulations that should be followed and agreed by the lessee while using the property that he or she is renting.
- A lease agreement provides understanding that all the entities involved in the transaction related to the lease are fully aware of the terms and conditions that have been predetermined by the property’s owner.
How to Make a Lease Agreement
Knowing how to write a lease agreement is important, especially if you own a rental or lease business. Providing a lease agreement to your clients is a necessary step to ensure that both parties are on the same page. Here are the steps in creating a lease agreement:
- Write a title on your lease agreement. It should indicate whether it is a rental agreement, residential lease agreement, lease purchase agreement, etc.
- List the names of both the landlord and the tenant including their addresses, contact numbers, and email addresses.
- Describe the property that is being leased, specifically the address and the condition of the property.
- Specify the exact duration that a tenant is allowed to lease the property before the agreement expires.
- Write the payment terms of the lease agreement. Indicate the date that a tenant is required to pay rent and the payment methods accepted by the landlord.
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Lease Purchase Agreements
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Farm Lease Agreements
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How to Register a Lease Agreement
- It is very essential for you to first ensure that the document contains the signatures of the lessee and the landlord. However, there are some lease agreements that also need the signature of the owner of the property.
- Once all the signatures are present, the next thing that you need to do is to go to a legal entity like a public attorney to notify the agreement.
- The notary present within the lease agreement should be validated with the presence of the people involved in the transaction.
- Keep track of the registration or notary number and accurately file the document in the recording system of the property.
What Is the Difference between an Operating Lease and a Capital Lease?
An operating lease and a capital lease are two types of accounting methods for leases. Both are used in various lease transactions although these two types have several differences.
- A capital lease is a type of method where the ownership of the property or asset that is being leased can be transferred after the end of the lease term. In an operating lease, the landlord retains ownership of the property or asset.
- In a capital lease, the lessee has the option to purchase the property while an operating lease does not.
Printable Office Lease Agreements
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How to Terminate a Lease Agreement Early
There are many reasons why a tenant or a landlord may decide to terminate a lease agreement earlier than the agreed end date. Terminating lease agreements without a valid reason may result in legal consequences. The steps in terminating a lease agreement with minimal damage or no damage are as follows:
- If a party breaks the terms agreed upon in the contract, then he or she breaches the contract; this is when the other party can file for an early termination.
- Look for an early termination clause in your lease agreement.
- Another method of terminating a lease early is to forfeit your security deposit.
Dos and Don’ts in a Lease Agreement
- Don’t assume that the clauses included in the lease agreement are standard. Clauses vary in every lease agreement.
- Do read the terms and conditions written in the lease agreement.
- When doing a negotiation with a potential lessee, don’t rush it.
- Do focus on the best lease rate that you can price the property.
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