Most people know what a lease agreement is - but many don't fully understand them. There are three common types of lease agreements and the one a landlord uses and ones they don't depends on the management style and needs.
The most common lease is the fixed lease. A fixed lease agreement is for a predetermined amount of time after which the tenant is required to vacate the property unless he or she signs a new agreement. Benefits to this type of lease:
- Fixed rent amount for the tenant
- Peace of mind for the tenant that they don't have to move soon - allowing them to settle
- For landlords, no turn around costs and vacancies for a certain amount of time
The next type of lease is a periodic lease agreement. This type of lease allows the tenant to occupy the property indefinitely or until the lease is lawfully terminated. These are the lease agreements that can be weekly, monthly or annual. Benefits to this type of lease:
- Gives the tenant and landlord opportunity to decide if the relationship or the home will be a good fit for each other.
- The lease can be terminated at anytime as long as sufficient notice is given.
- There is no set renewal date
- The rent is fixed for the period of the lease
Finally there is the tenancy at will. These are essentially verbal lease agreements and often used by landlords who want to rent a property quickly - but also you can evict someone quickly under this type of lease. This is generally used for temporary situations but also, this type of tenancy falls into place by default when a long term written lease expires.
Before signing a lease, the main things to consider are:
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the length of the lease
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conditions to terminate tenancy
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will it be in writing or not
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which fits your living, work, family situation best
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how important is a fixed rent amount or living stability
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whether or not you think you will want to live in the home for a long time or if you think you might move soon
Of course there are many more particulars, but these are just some helpful tips to think about before deciding on the type of lease that suits you - from there you can get legal or professional advice before signing the actual lease!
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