A strong lease agreement is vital for any successful rental, protecting both landlords and tenants. Missing details can lead to major problems. Clearly defining roles upfront safeguards your investment and sets up a harmonious tenancy. Read on to discover the 5 essential lease agreement clauses you must understand.
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A lease agreement is essentially a document between a lessor (owner) and the leasee. This lease agreement states the basics and more technical terms that would be agreed upon by both parties.
Different factors come to the fore while creating this document. Hence, it is not generally the same thing across the board.
Below are the basics that can be fundamentals to your lease agreement clauses.
Identify lessor and leasee
All lease agreements must specify the parties involved. It must be written without any ambiguities.
The names of all parties involved should be written. Using shortened name forms can be confusing.
In some instances where the owner has given the function of a lease agreement to a lawyer or agent, it should be stated.
One of the pros of a lease agreement is the simplicity and details that come with it. Aside from stating the names of the parties involved, the address of the parties is also as important.
The name and address of the owner and lessor must be clearly stated.
Identify Property/Equipment
The information about the property or equipment should also be on the lease agreement.
Information ranging from:
- Name of the Item
- Serial Number of Item if available
- Address of item (if its a property)
- Color of the Item (i.e a Gold Car)
- Type of item (i.e Toyota Corolla, Bungalow House, Hp Laptop)
This information helps to identify the property, and it also buttresses the specificity of the agreement.
Lease or Rental Terms
State the validity of the lease agreement as clearly as possible. Using specific start and end dates for the lease agreement is a savvy way to have everyone on the same page.
Generic time frames (6 months or 1 year) can be confusing. A more exact format should be employed in the agreement; day/month/year.
One of the causes of conflict in the lease agreement is the tenor. Clearly stating this would eliminate all forms of discrepancies and misunderstandings that could arise.
Lease Amount and Due Date
The lease amount is another critical factor worth highlighting in the lease agreement. A comprehensive lease agreement highlights the amount and the due date.
It states in clear terms the penalty (fee) charged for late remittance of rent and other concepts surrounding rent amount and due date.
The aim of an agreement is to have a good understanding of what is expected of the lessor and the lessee. Payment is an important area.
Owner and leasee Signature
For any lease agreement to be passed as authentic, it must carry the signature of the parties involved.
Having all the glossy words and terms is worthless without signatures. The signatures confirm that the owner of the item and lessor are satisfied and willing to abide by all the terms of the agreement.
The acknowledgment clause stating that each party has read, understood, and agrees to comply with the terms of the lease is critical to the authenticity of the agreement.
Conclusion
To append your signature on any lease agreement is to accept to be bound. It is only logical to understand all the clauses in the lease.
As helpful as these tips are, an agreement could have subtle clauses that might come across as good to you but might be a big issue from the lens of the state’s law. Hence, it is beneficial to have a lawyer to assist in dissecting the wordings and technicalities in the lease.
That way, you are free from ignorance and can concentrate on enjoying the apartment without the fear of running into trouble at any point in time.
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Reference: [https://fundquestnigeria.com/5-essential-lease-agreement-clauses/]
