Understanding The Elements Of A Good Rental Agreement Or Lease
A world without bargain is a utopia in its own because people are constantly bound in a race for obtaining an advantage over or gaining an advantage from the other party involved in a matter.
Rental agreements and leases are no exceptions to these universal laws; both sides want to obtain the maximum profit they can from the other. In order to sufficiently understand the terms of the handover that you are about to make, you need to first identify the key differences between rental agreements and leases.
Rental Agreements
These agreements are short-term in nature and allow the renter/tenant to terminate the contract within 30 days of signage in the event of dissatisfaction. These agreements are not lawfully binding, which means that your rights as a service taker are not exactly protected fully by law.
In addition, these month-on-month rents can rise without any prior information. So there is no certainty that you will leave the place with the same monthly amount paid that you arrived with.
Lease
A lease works with fixed amounts for longer durations – say, a year or six months. During this time the leasing authority cannot take any legal action against you for not paying rent on a monthly basis (provided that you do pay off in the end).
Furthermore, you will not be taken aback by sudden increases in prices because the contract you sign will not allow changes to a running deal. On the bad side, by signing a lease you are in a long-term engagement with the other party, and you will have to adhere to the payment schedule even if you are about to leave.
What To Look For In A Good Deal?
Be sure to read the terms and condition before you head on to sign a deal because unlike credit card and software installation terms, these are actually important.
1. Household Restrictions
Some house owners are not comfortable with having pets in their place even if they live there. Others might have a problem with you opening up an in-house office without informing initially because that would mean new people would keep coming.
It might get annoying to be restricted by such nuisances after being a good tenant, but these restrictions must not be disregarded for decent relations with your renter later on.
2. Payment Nature
What is the collection date for rent and how much do you have to pay? Is there any security deposit? These are all questions which will be answered in the financials section of the deal, so be sure to thoroughly go through it.
3. Present Damages
A rented property is never really given an entire makeover because it is temporary, but there might be some damages initially that you might have to deal with. Compare those damages to the overall cost of you staying, and make sure that they are not ridiculously high.
4. Renter’s Behavior
You will not be able to observe this on any paper, but it is important to note down the kind of behavior the renter holds towards you. If you feel disrespected, then the features of the property become secondary in nature.
