We have used the terms lease and rent interchangeably that we come to think they mean the same thing. A lease and rental agreement both are arrangements between a landlord and tenant, but they actually have differences. A lease is a long-term agreement that can be anywhere from 6 months to a year. A rent, on the other hand, is a month-to-month agreement, which makes it a short-term agreement.
The making of a lease agreement should be carefully thought of so that certain mistakes that could lead to serious problems can be prevented and avoided. That is why knowing the ten terms to include in a lease is important.
What Is the Term of the Lease?
The term of a lease refers to the length of time that the tenant is allowed to use or occupy the assets or the property. It is a statement in the agreement that specifically mentions the exact date when a lease starts and the date when the lease contract expires. It is expressed with the month, day, and year. A lease term usually lasts from a period of 6 months up to 1 year or longer depending on the said agreement. Any changes in the agreement cannot be done during such time within the contact’s term.
What Can Be Included in the Lease?
To ensure that the lease agreement you are writing is complete, you can check a free lease agreement sample and make sure to include the following information:
- The name of both the landlord and the tenant
- A detailed description of the property being leased
- The exact start and end date of the lease agreement
- How the lease would be renewed
- Important causes, like termination or default clause
- How payment is going to be done and how often
- Security deposits, late fees and penalties
- The duties and responsibilities of both parties
- The rights and limitations of what the tenant can do on the property
The Top 10 Lease Terms You Should Have When Renting
Regardless if it is a sales agreement or an investment agreement, we tend to look for the devil in the details just to play it safe. And when it comes to lease agreements, you should look for these top 10 terms.
- Tenants names – This includes the names of all those who will use or occupy the property.
- Tenancy terms – The agreement should be specific about the property being for lease or for rent.
- Occupancy limitations – Determines who lives in the property. If it is a residential lease, then only the family and their members are allowed to live there.
- Deposits, penalties, and fees – Additional fees aside from the agreed rent price is stated in this part of the agreement.
- Repairs and maintenance – Determines who is responsible for doing the maintenance of the property.
- Rent or payment – This includes the amount, method, and frequency of payment.
- Entry to rental property – Determines who are allowed to enter the property aside from the tenants.
- Restrictions on tenant activity – States the activities that are not allowed within the property.
- Pet policy – Tells if pets are allowed or not.
- Other Restrictions – Specific restrictions that the landlord wants to include are listed here.
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