What is a Lease Agreement?
Before you move into a property, many landlords require their tenants to sign lease agreements. A lease is a contract between two parties, a tenant & landlord that gives a tenant permission to live in a property for a fixed period of time, which ranges from anywhere between 6 to 12 months. A contract between the landlord and tenant binds the parties to the lease agreement.
Residential leases are defined in clear, thorough terms, as the expectations between landlord and tenant, including rent, rules regarding pets, and duration of the agreement. A good lease agreement is one that is well worded and can help ensure both parties’ best interests are protected, as neither can alter the agreement without written consent from the other.
Okay, but why do we need a lease agreement? Is it really that important?
Well, signing a lease is one of the most important steps in renting out a property. It protects you from any unexpected financial burden that may befall you. If you are not able to get a proper lease agreement, you may even end up giving up your rental investment. Thus, as a sane landlord, you have to protect yourself and your property by having a lease agreement.
What are the advantages of using a lease agreement?
If you prefer stability, then taking a lease agreement is the right way to go. Many people prefer leases to rental agreements because they are meant for a stable, long-term occupancy. Think about it, having a tenant stay in your property for at least a year may offer a more predictable and stable rental income stream, right? Not only this, but it will also cut down on turnover costs.
What are the disadvantages of using a lease agreement?
That said, once a lease agreement is signed, the rental cost is set in stone until the end of the agreement. In a progressive area that has shown consistent growth in property values, a year of fixed rental costs could potentially mean that you miss out on a substantial increment in your income!
In conclusion, we can say that a lease is a great option for landlords looking to earn a stable income, but it may negatively impact profitability substantially, should the property value grow within that year span.
All right, that’s all good, but how can SurveySparrow help me?
We at SurveySparrow give you the option of using the foremost method of collecting all types of data – A Survey powered with multiple question types including opinions scales, consent/agreement taking question types that help you state out your terms & conditions explicitly and take the acceptance of the lessee there itself. You can customize your survey according to your needs and make use of the insightful reports generated by us to take effective and efficient decisions while crafting the lease agreement for your properties, every time.
Try out our Lease Agreement Form Template, today!
