Tuesday, November 11, 2014
A lease agreement is a legal contract binding both tenant and landlord when renting a piece of property. It serves to protect the rights of both parties involved. Look for these must-haves before you sign any lease agreement:
The basics must be covered comprehensively. These include:
The term - the term or length of the lease, and the tenants options once this initial term ends.
The rent - the base rent, what it is inclusive of (ie. electricity, water, property tax, etc.); the date when tenant must pay rent; and whether there will be any changes in rent following the initial term
The property - address and description of the property, its premises, facilities, and various permitted uses thereof.
Guarantees - any security deposits or personal guarantees required and the conditions under which the tenant may get them back.
The exit clause - the tenant's right to end the contract and the conditions under which this is permitted
Details, specifics, and permissible conditions regarding the following:
improvements, alterations and repairs to the property
maintenance and code compliance
hours of operation
right to sublease
landlord right of entry
breach of contract
option to renew
A clause barring non-written additions or modifications to the lease.
“Get it in writing,” as they say Make it official. Your contract must state that any informal agreement not written, acknowledged, and agreed upon as part of the contract will not be honored in the lease.