WHAT IS A LEASE AGREEMENT
A lease agreement is a written or verbal contract between a person or organization who owns some sort of property and another person or organization who is renting or borrowing the property for a defined length of time.
Benefits of a Lease Agreement
A lease agreement can be of great benefit to a property owner as it allows the property owner to earn income on property that might otherwise go unused. A lessee can benefit from a lease agreement by enjoying use of the property without the responsibility or expense of ownership. Lease agreements are designed to protect both parties.
A lease agreement serves to legally protect both parties in the agreement. The deposit, payment, rules listed in the terms of a written lease and time frame protect the property owner and the lessee or tenant, providing specific dates, monetary figures and other particulars, to which each party can refer at any time.
There are several types of lease agreements for different property types. A residential lease agreement is used by landlords and tenants of a rental property. A commercial lease agreement is used when a business is leasing property, such as warehouses, buildings and office space. Lease agreements can be used to lease other property as well, such as vehicles or home furnishings.
The time frame listed in lease agreement terms can vary greatly depending on each parties requirements. Month-to-month leases can be renewed by the parties on a monthly basis or leases may last for 6 months, a year or longer.
What to Consider
A written and signed lease agreement is typically a legal contract. This means the terms can be upheld in a court of law. It is imperative both parties thoroughly read and understand all terms of a lease agreement prior to signing it to legally protect themselves. Written documents carry far more weight then verbal contracts in a court of law.