Lease Agreements Guide (with Free Templates)
Whether you’re a property owner or a tenant looking for a place to rent to live or start a business, you’ll need to know the ins-and-outs of leases.
Leases not only protect your rights but help prevent misunderstandings and define the responsibilities of each party. Though there’s no legal requirement for leases, it’s always good practice to make one to ensure all terms are documented and enforceable.
But now comes the hard part (as is the case with legal documents), how do you create a lease agreement?
In this guide, I’ll cover everything you need to know about leases including how to make your own using a Contract Maker and lease contract templates.
Click to jump ahead:
- Understanding lease agreements
- Navigating lease agreements
- Additional resources on lease agreements
- General lease information
- FAQs
- Conclusion
Understanding lease agreements
Before learning how to create a lease, let’s understand what lease agreements are and the different types you can create.
What is a lease agreement?
A lease agreement is a contract between a landlord and a tenant. It outlines how much a tenant will pay, the length of contract, and expectations of both parties.
Here’s an example of an effective lease agreement.
If you’re not sure what a landlord and tenant means, here’s a brief overview.
- Landlord: An individual who owns a property (or land) and rents it out.
- Tenant: A person who occupies a property and pays the landlord each month.
Residential lease agreements
Anyone who’s moved cities or countries for education or work will know that finding a place to live usually requires signing a residential lease contract.
Residential leases are the most common type of lease contracts and different from commercial leases which are intended for business purposes (office space, retail store, warehouse).
Who needs a lease agreement?
Lease agreements are necessary for landlords and tenants as it protects interests of both parties, provides legal clarity, and minimizes disputes.
Why do you need a lease agreement?
Lease agreements are essential because they outline terms and conditions between a landlord and a tenant. More specifically, a lease agreement provides the following benefits.
- Allow smooth dispute resolution
Since lease agreements include details on responsibilities of both parties when it comes to rent-related issues such as maintenance, misunderstandings can be reduced or avoided altogether.
- Provide security and sets expectations
Lease agreements offer both parties legal protection against non-compliance or any abrupt changes in terms. It also sets expectations so that there is no confusion about what is expected from each party.
- Enable protection of rights and responsibilities
Lease agreements clearly delineate the rights and responsibilities of landlords and tenants which enables both to take action if obligations are not met.
Navigating lease agreements
Now that you have some background on leases, let’s see how to create one.
Can I write my own lease agreement?
Anyone can create lease agreements and there’s two methods to go about this.
- Create a lease from scratch
- Use a legal lease template to save time
Creating a lease from scratch gives you flexibility to personalize the design. However, if you don’t have professional design skills or legal experience, you might forget important details.
This is why lease contract templates are recommended along with legal counsel when creating leases.
For example, this lease agreement template lays out the all the necessary details required in a clear structure and visually appealing format.
تعليقات
إرسال تعليق