Benefits Of a Lease Agreement
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Who Benefits More From a Lease Agreement, the Landlord or the Renter?
Rental apartments are more often occupied under a lease versus a month-to-month, more "casual" agreement. The question of who benefits most -- landlord or tenant -- is sometimes asked as if this agreement were a win/lose proposition. However, a fairly negotiated and written lease benefits both parties equally if the parties understand what they want and include these items in the agreement.
The primary benefits to BOTH parties typically include the following items.
- Stability. Both the landlord and tenant have agreed to a set of conditions, acceptable to all, which should provide some level of stability for the parties. Longer term leases fro two to five years increase the stability factor.
- Continuity of income (landlord) and housing expense (tenant). A residential lease agreement benefits both landlord and tenant by stipulating a continuity of income/expense over the term of the contract. Since both parties agreed to the terms, both should be satisfied with the monetary factors.
- Commitment that should be comforting for both parties. Both landlord and tenant have shown commitment when rental apartments are occupied through a lease agreement. Often a house rental becomes a home rental because of this commitment level. Whether you use a standard sample lease form or more complex custom document, both parties win.
There are a few instances, usually unforeseen, that may give an advantage to either landlord or tenant. For example, suppose you're a tenant whose been offered a fabulous new job in another state. Wonderful, right? But, you're in the second year of a five-year lease of your home. Now what? The landlord has an advantage because the lease must, legally, be fulfilled. If your residential lease form allows you to sublet your house, you'll probably have to do that to fulfill the terms of the contract.
On the other hand, suppose your landlord unexpectedly needs to sell your house. Having a longer-term lease, instead of a month-to-month rental term, gives you some security knowing your rental lease agreement cannot simply be terminated on 30 days' notice. In this example, the tenant normally has an advantage.
Under typical circumstances, however, both parties enjoy equal benefits under a standard lease used for rental apartments and houses.
The above-listed tip is for informational use only. Always read entire specific documents and language before executing any contract or agreement.