Understanding Types Of Lease Agreements
Lease agreements play a pivotal role in the process of renting a property as they determine the terms and length of the lease. The agreement is designed in a way that it lays out specific commitments on part of the property owner and tenant.
Here are various kinds of lease agreements on the basis of duration and terms of lease:
- Short-Term Lease: Short-term lease agreements comprise of month-to-month leases with terms that are applicable for a single month at a time. These lease agreements automatically renew unless a tenant issues a notice to the property owner expressing his desire to leave the property. Such lease agreements are apt for someone who is not in a position to commit for a year-long lease and is interested in taking it one month at a time. These lease agreements offer tenants flexibility in terms of rental options.
- Sublease: A sublease is a type of agreement wherein a tenant can rent out a portion of the rental property to someone else. For most tenants, this is a great way to minimize living costs while enjoying a healthy relationship with the property owner. The sub-lessee will be liable as per the sublease contract, however when it comes to liability for payments and other terms of the contract, the original lease will prevail. It is important to know that a tenant is required to obtain the property owner’s permission to sublease.
- Long-Term Lease: As the name suggests, a long-term lease lasts for one year, two years and in some cases for a span of 6 to 9 months. Such lease agreements are feasible for property owners interested in stable income for a guaranteed period. They also offer stability of tenants which in return helps in saving money that would have been spent on searching for new tenants frequently. For tenants, long-term leases offer an advantage of stable rental price in-spite of current market trends which may be higher. The rate of rent remains the same as it was at the beginning of the lease unless the agreement has a clause for rent renewal after a pre-defined period.
Irrespective of the type of lease agreement, it is important to understand the terms and conditions stated in the agreement before committing to it. It is advisable to go through terms related to premature termination of the lease and the penalties thereof.
REAL Star Property Management, LLC assists its clients in understanding the types of lease agreements. The agency provides property management and rental services to its clients. For more details on understanding the types of lease agreements, visit 3901 E Stan Schlueter Lp Ste 100 Killeen, TX - 76542. You can also call at (254) 693 – 7850.