Standard Property Lease Agreement
A property lease agreement functions as a binding contract between the owner of a property and the person leasing it. The agreement tells both parties what obligations each will have under the agreement. Further, the property lease agreement can serve as an important legal document if a dispute develops between the parties.
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Types
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Commercial leases allow a company or individual to use the property of another to run a business. Commercial leases may have specific clauses not generally included in residential leases, such as a provision on property taxes or which types of business appliances, like deep fryers in a restaurant, may be installed on the premises.
Residential leases exist to permit an individual or family to lease the property of another for use as a home. Residential leases may have clauses not contained in a commercial lease, such as provisions on the ownership of pets.
Features
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A standard property lease agreement should contain the name of both the landlord and the renter. The lease agreement should also contain a description of the property that gives the address and also the unit or apartment number, if applicable. The term of the lease is a standard feature in a property lease agreement, as is the amount to be paid each week, month or year. A lease agreement often contains the deposit amount, maintenance provisions and property damage responsibilities.
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Benefits
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The main benefit of a standard lease agreement is to create a binding legal document that protects the rights of each party. It also serves as a reference point to show the parties their obligations before a dispute rises to the level of a lawsuit.
Considerations
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Under the laws of each state, an agreement regarding the sale or lease of property must be in writing to be enforced by a court. The written agreement must contain the names of the parties, a description of the property, the term of the lease and the payment amount. For example, the Arizona Revised Statutes require a lease to be written if the term of the lease is longer than a year.
Warning
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Renters should conduct a thorough examination of the property before signing a lease agreement or providing a deposit. This will prevent any surprises that might arise about the condition of the property.
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References
- Photo Credit apartment lease sign image by Aaron Kohr from Fotolia.com
