An agreement is defined as a transaction that took place between two or more parties who agree in a particular thing that is usually business related. All businesses require an agreement to be in place, especially those that needs a long time to perform or execute.
Here, we will discuss about apartment rental business which is one of the business industry that is constantly in need of agreements. We will define what it is, identify its uses and site some common examples. We have also included useful apartment rental agreement templates for you to use and download as reference. You may check them out below.
Private Rent Agreement Form
Blank Rental Agreement Format
Sample Individual Rent Agreement Format
Residential Tenancies Rental Agreement Format
Apartment Tenancy Agreement Template
What Is an Apartment Rental Agreement?
An apartment rental agreement is an agreement that is required by an apartment rental business. The document contains details specific details of the rental agreement that has been agreed on by the parties involved. There are two parties involved in a rental agreement and they are called the landlord and the tenant. The landlord is the person or individual who runs the business in place of the owner or they could be the actual owner of the business. The tenant could be a person or a group of people whom the landlord has allowed to rent or live in the apartment that they have for rent.
An apartment rental agreement is used mainly to bind the parties involved in the terms and conditions that are stated in the agreement, which makes them liable or obliged to follow the said terms and conditions. Other uses of an apartment rental agreement includes listing and defining agreement violations as well as their remedies or corresponding consequences, detailing the duties and responsibilities of each party, pointing out termination clause ans other necessary agreement clauses and providing the list of accepted activities as well as the limitations of each party in the agreement. The payment terms and conditions are also specified which includes the amount to be paid, the frequency of the payment, the mode of payment, the associated taxes and fees, etc.
Uses of an Apartment Rental Agreement Template
An apartment rental template is a formal, ready-made document that makes the task of or drafting an apartment rental agreement easy and convenient. The template looks like a fill in the blanks document where you need to fill in the required information in order to complete the agreement. Here are some of the uses of an agreement template you would want to know.
- The template is used to be able to make a complete and detailed agreement quickly without having to go through a lot of hassle.
- It is used to eliminate the need to recreate the entire agreement document starting from the outline down to the contents and other details.
- Having an agreement template is used so that all rental agreements with other tenants are the same. This is done to maintain uniformity in all rental transactions which makes the management of the business organized.
- The template is used to make sure that no important detail or information is missed in any rental transaction.
Those are some of the uses of an apartment rental agreement. To know more about rental agreements and agreements in general, you can check out the different topics we offer on our website. Some examples include Equipment Rental Agreement Samples, Free Sample Rental Agreement Forms, and Dealership Agreement Templates.
What Is the Difference Between a Rental Agreement and a Lease Agreement?
Many people come to think that rental agreements and lease agreements refer to the same thing. Well, they actually don’t and that is what we are going to clarify here. We will be identifying the difference between a rental agreement and a lease agreement.
Both rent and lease are defined similarly as they both refer to getting rights to using a property, such as a house, apartment, equipment, vehicle and so on, in exchange for a recurring fee that is often on a monthly basis. A number of things that can be rented can also be lease and that includes those that has been mentioned earlier. This is usually where the comes from as a lot of use only tend to read and understand this part of definition. Having similarities doesn’t really make them same them.
Length and Payment
The first thing that would help you differentiate a rental agreement from a lease agreement is the length of time or the duration covered by each type of agreement. So when you say a rental agreement, it is a month to month agreement. This means that the landlord allows the tenant to use his or her property on a monthly basis or for a short period of time. Payments are also made monthly often in advance billing method.
Lease agreement is a long-term agreement that lasts from six months up to one year or longer depending on what has been discussed and agreed by the landlord and the tenant. Because the arrangement is for long term use, a lease agreement is the ideal agreement for commercial properties and tenants who wish to use the property for business purposes. This transaction requires a down payment which is often half the price of the total amount for the lease of the property. Installments and monthly payments may apply after the down payment has been made.
Termination and Renewal
Tenants can terminate their rental agreement at the end of the month as long as they provide enough notice to their landlord about their plans for leaving. With most rental agreements, the renewal of takes place automatically at the end of the month and notification is only give by both landlord and tenant if they need terminate the agreement for reasons, like moving to a different location, property renovation, price increase, etc. This must be done still with enough notice and with a valid reason.
Lease agreements on the other hand tend to be different. With a lease, the tenant can terminate the lease but they must pay for the total amount or entire amount for the duration of the lease even if they do not plan to stay or use the property until the agreement expires. The agreement will also not automatically renew by the time it expires unless the tenant has sent a notification stating their desire to renew the lease and is subject to the landlord’s approval. It is also the landlord’s job to send a renewal notice allowing the tenant enough time to decide whether to renew or not.
Advantages and Disadvantages
Now, we are down to what makes each type of agreement good and bad, and the best way to find that out is to determine their advantages and disadvantages.
So what are the advantages and disadvantages of a rental agreement? Since a rental agreement is a month-to-month agreement, it is common for some changes to be made every month after the current month’s agreement expires. Is that a good thing or a bad thing? It’s both. For the landlord, they can change the price of the rent every month and may allow or limit certain activities in the property every month with enough notice. This is actually not good for the tenant as the rent may increase every month depending on the landlord. On the bright side, tenants can also easily change or move from one apartment to another as they are not bound to the agreement for long. If the landlord increases the rent, they can find and move to another rental apartment that is cheaper or more affordable without having to pay for fines and such.
You may think that it is the same thing with a lease, but isn’t. For tenants, the good thing about a lease is that the landlord cannot freely make any changes to the agreement while it is currently in effect. The landlord can’t increase the lease price, can’t make changes to the things that are allowed and not allowed in the property and so on. Changes can only be made to the agreement after it expires. And since it doesn’t automatically renew, the tenant can decide whether to keep the lease or completely terminate it upon expiration. So what’s in it for the landlord? Since the agreement is for longer periods of time, they can guarantee a continuous flow of money for the entire duration of the lease, regardless if the tenant uses the property for the whole duration or not.
With these differences, you will surely be able to set them apart and know when to properly use a rent and a lease. being familiar with these differences will help you with making decision if you want to be in a rental agreement or lease agreement. Other related topics you may find useful are Service Agreement Templates and Samples, Sample Free Printable Rental Agreements, and Separation Agreement Templates.
Apartment Tenancy Agreement Template
Simple Apartment Rental Agreement Template
Apartment Term Rental Agreement Template
Corporate Apartment Rental Agreement
General Apartment Rental Agreement
Rental Agreement of Apartment Template
Examples of Commonly Used Agreements
There are tons of agreements in existence right now and knowing each one of them may take quite some time so you might want to consider learning about the common ones instead.
- Business Agreements – You should be able to tell why a business agreement is one of the commonly used agreements, right? More than a requirement, it has been a necessity for any business to have an agreement in place whenever they conduct business or do business transactions, especially if it a for a long period of time. Business agreements could be any agreement that is related to business, like advertising and marketing agreements, reseller agreements, consignment agreements, and many more.
- Investment Agreements – Business investments are in demand making investment agreements part of the commonly used agreements right now. Making investments involves money, usually in really huge amounts and having investment agreements gives the investor feeling of security that they won’t lose their money in the transaction.
- Confidentiality Agreements – Often part of another agreement or as an agreement document on its own, a confidentiality agreement is mostly used in businesses or transaction that requires one party to share proprietary or confidential information related to business to other parties. The presence of a confidentiality agreement, ensures that the shared information will not be leaked to outsiders. This also allows businesses to keep their trade secret safe.
- Employment Agreements – This agreement is between the employer and their employees about the duties and responsibilities of each party as well as the terms and conditions of the employment. With the number of employers and employees in different work industries, it’s no wonder why this agreement is a common one.
- Loan Agreements – Whether it be for personal reasons or for business reasons, there should always be a loan agreement when loaning money to a bank or lending institution. The agreement states the details of the loan including the principal loan amount, payment method, payment frequency, length of the loan repayment, etc.
Which type of agreement have you had? being familiar with the commonly used agreements will give you an idea on what agreement is used for certain transactions just like those mentioned above. This helps you avoid fraud so that you can get yourself away from trouble.
If you are able to learn about agreements in this article, then you will surely learn more about other topics or articles that we offer on our website. To name a few are Real Estate Consulting Agreement Templates, Commercial Security Agreement Templates, and Business Development Agreement Templates.
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