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What is the Purpose of a Rental Lease Agreement?

What is the Purpose of a Rental Lease Agreement?

A rental lease agreement (also known as a sublease) is a legal document that specifies how long someone may rent out their property (the landlord), what they may charge (the tenant) and what they cannot do (the lessee). You can find a free printable lease agreement easily from the web, and customize it for your needs.

Purpose of a Rental Lease Agreement

A rental lease agreement is basically a contract between two parties where one party (the lessor) rents out property to another party (the lessee). In return for rent, the lessee agrees to pay rent, complies with any rules set forth by the landlord, and abides by the terms of the lease. This is the basic purpose of an agreement like this.

A lease agreement may be written or oral. Written agreements are often called leases while oral agreements are known as verbal contracts. You can get these free legal documents online easily.

What are the different terms to include in a rental lease agreement?

These include:

1. Rent

The term “rent” refers to money paid to someone who owns land or real estate. Rents are generally paid monthly, quarterly, semi-annually, annually, or at some other interval.

The rent is the money paid to the landlord for using the property. In a rental agreement, the rent amount is specified at the beginning of the contract and is called the “rental rate”. If no specific rate is mentioned in the rental agreement, then the rental rate is typically determined based upon the market value of the property.

Rent is often split into two parts: one half is due at the time of signing the rental agreement and the remaining half is due after the first month’s rent is paid.

2. Rent Period

The period of time that a tenant pays rent to a landlord. Rent periods can range from months to years.

3. Landlord

Landlords are people or businesses that own real estate. Landlords have the right to charge tenants rent for the use of their property.

4. Tenant

Tenants are people or businesses that live in rented space. Tenants pay landlords rent for the use of the property. Both landlords and tenants have to sign a lease agreement.

5. Property

Property is anything owned by someone. Properties can be houses, apartments, office buildings, retail stores, warehouses, etc.

6. Lease Term

Leases are long-term arrangements that last for a specific amount of time. Lease terms vary depending on the type of property involved.

The term is the length of time that the tenant pays the rent. The rental period begins at the start of the lease and ends at the end of the term. If the rental period is longer than the term, then rent is paid over the entire rental period.

7. Other Charges

Other charges are items that either benefit the landlord or burden the tenant. Examples of these types of charges might include pet fees, property taxes, maintenance costs, utility bills, etc. These charges are generally listed in the rental agreement rather than being handled separately.  You may download all kinds of legal forms and templates online for free here.

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