Lease agreements are agreements between two parties – lessors. Under the lease agreement, each party is given a detailed description of their rights and responsibilities.
Lease Agreements: What are they?
A lease agreement is a contract between a lessor and lessee that grants the lessee the right to use a property that the lessor owns or manages for a specified period of time in exchange for periodic payments.
The lessee does not receive ownership rights under the agreement. Lessees may, however, obtain permission from the lessor to modify or change property to meet their needs. During the lease period, the lessee is responsible for maintaining the property.
An agreement for lease can be used to lease a property, a vehicle, a household appliance, construction equipment, etc.
Lease agreement contents
The following are common contents of a lease agreement:
- Lessor and lessee’s names or the names of their agents.
- Property description.
- Rent amount and due dates, grace period, late fees.
- Payment method for rent.
- Termination methods and charges if the agreement is terminated before the expiration date.
- The amount of the security deposit and the account in which it is held.
- Utility services provided by the lessor, and how the charge for these services will be determined if the lessor charges for such services.
- On-premises amenities and facilities that the lessee has access to, such as a swimming pool, laundry, and security.
- There are rules and regulations concerning pets, noise, and penalties for violating them.
- Identify parking spaces, including designated spaces, if available.
- Procedures for handling tenant repair requests and emergency requests.
Lease agreement terms commonly included
Duration: Duration of the lease agreement.
Rent: The consideration paid by the lessee to the lessor for the property leased out.
Deposits: The amount of the deposit (if any), its purpose, and the conditions for returning or adjusting the deposit at the end of the lease period.
Utilities: Which utilities are covered by the rent, and which utilities the tenant is responsible for.
Insurance: Whether the lessee is responsible for insuring the property – a requirement in most commercial rental agreements.
Repairs and Maintenance: Property owner or lessee is responsible for repair and maintenance.