Lease Agreement Value
Now let`s look at the pros and cons of a lease: some option provisions specify the increase in market rent or rent just before the option period, which means that although market rents have recently decreased, these companies also remain responsible for the market. Until a few years ago, companies paid higher percentages of annual turnover in rent. The possibilities of renewal, with purely market rent adjustments, have become capital gains in recent times. A fixed-term lease offers security and predictability to a tenant. Since the rental agreement is a mandatory contract between the lessor and the tenant, none of the conditions of the rental agreement, such as for example. B the rent, cannot be changed, unless the owner and the tenant agree. In addition, the lessor cannot force the tenant to leave the rent unless the tenant terminates the payment of the rent or otherwise violates the rental agreement. It is therefore often easier to rent a rental property than to rent it month after month. Another popular method of renting is long-term rental. A lump sum is paid as a one-time allowance for a fixed period or a fixed rental period, such as 2 years or 3 years.
The tenant or tenant does not pay monthly rent. At the end of the rental period, the owner must reimburse the full deposit indemnity without interest. In the case of a long-term lease, the advantage is that there is no effort to pay the monthly rent and it is possible to save a lot on this type of lease. There may be maintenance, electricity and water costs that must be paid regularly. A monthly lease contains the same provisions as in a standard lease agreement. However, either the tenant or the lessor can change the terms of the contract at the end of each month. The lessor has the option of increasing the rent or asking the tenant to leave the premises without breaching the lease. However, a lessor must give reasonable notice of 30 days before asking the tenant to leave the property.
A lessor is not required to renew the terms of the old lease and is free to change the terms and amounts of the lease upon request. This is why some tenants prefer to sign a longer-term lease if the monthly rent is very favorable and in an area where rents are likely to increase during the term of the lease. Whether you choose a lease or a lease, it is essential that you know who your tenant is. A thorough review of your rental applicants can help you give confidence that you are placing the right person in your property.