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Renting A Property & The Rental Agreement |
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There are many reasons why people opt to rent than buy their own homes. Location and accessibility to work may be one thing. Convenience is another reason allowing them more time for leisure and not tied up to home maintenance. Still another reason may be they want to keep their finances flexible. But whatever the reason may be, the most important thing to learn is the rental process.
Anybody who wishes to rent a property needs to have a rental agreement with the owner. A rental agreement serves as a contract between the two parties and should be written. It is often known as a lease when real estate is rented. The agreement should specify the parties involved, the property, the term of rental and the amount of rent. Under this agreement, the property owner may be referred to as the lessor while the lessee is the renter. In addition, the terms of the contract should follow state rental statutes and ordinances.
Real estate for rent may cover an apartment, house, building, business office, land, farm or any space. Access to other common areas may also be included. A rental agreement can go into other details like the present condition of the property and how it should be used and who can use it.
For a housing lease, the agreement may state whether the renter is living on his own or with family and children or with friends. The rights and obligations of both parties are likewise specified. A renter, for instance, may have rights against intrusions by the owner or landlord except during emergency cases.
The usual term of the rental is either monthly or annually. It can be on a fixed term meaning the renter will occupy the property for a specific period of time. This type of contract should be strictly followed because if not, the renter could be held liable. The agreement may also be renewed automatically if a renter stays beyond the agreed term.
A more flexible term is the periodic agreement which allows renters to terminate the contract for any reason and in any month. Landlords can also increase the rent any month they want. Before terminating the contract, notice should be given at least 15 days before the end of the month.
Payment terms may be monthly, yearly or in advance. Normally, renters are asked to pay the first and last month’s rent and a security deposit. The security deposit serves as an escrow deposit and held by the owner or landlord until the property is returned in good condition.
To ensure the proper maintenance of the home or property as well as safety of the renters, owners and landlords can set rules and regulations. Apart from the property itself, the rules may cover shared areas and facilities like the laundry rooms, storage areas, swimming pools and parking spaces.
If you’re planning on renting a home or apartment, be sure that the agreement you make with the owner is written. Read the details of the contract carefully before signing it. If you don’t fully comprehend the terms and conditions, seek advice as much as possible particularly from a real estate lawyer. Keep in mind that the contract is a legal document that should contain the terms you agree to follow.
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