Property rental agreements
What are Property rental agreements?
Property rental agreement forms are used when renting a unit, house, townhouse, houseboat or apartment. These can be presented in the form of either written or oral, most commonly being written though. Property rental agreements outline the legal rights and responsibilities of the tenant and are a legally binding contract. It is classed as your ‘written record’ showing that you have agreed to the terms of the contract.
What are property rental agreements like?
A property rental agreement is like an engagement as neither of them may not be long term.
What is the purpose of Property rental agreements?
A signed property rental agreement between both the tenant and the landlord is used as protection for the both of you. Without it, neither of the parties have any record of the agreed conditions, term, payments, bonds or repercussions if something were to go wrong. The property rental agreement is used as evidence to show the new tenant knows their obligations whilst living on the property and has agreed to them.
What are the different types of Property rental agreements?
There are four different types of rental agreements; otherwise known as leases. These consist of;
- Fixed-term rental agreement – This agreement outlines the period of time that the tenant is able to live on the property, typically only being valid for one year.
- Periodic rental agreement (Month-to-month agreement) – This agreement does not provide a move in or termination date. Instead that is left up to the landlord or tenant to give each other notice when they would like to finish the agreement. As there are no specific dates provided, the tenant and landlord must discuss and agree on the rental terms such as the amount to be paid.
- Rent-to-Own agreement (Lease-purchase) – This agreement differs from the others as it gives the tenant the option to purchase the property whilst they are renting there. The tenant pays rent for the fixed amount of time they are residing there and then at the end of the agreement they are able to buy the property, move or seek to negotiate another rental agreement.
- Sublet rental agreement – A sublet rental agreement is when the tenant of a property gives their rights under a lease to another party. This agreement gives the power to the other party who is already residing in the property to rent out the property.
What’s involved with signing a Property rental agreement?
The first step to be eligible to move into your desired rental property is completing an application. This gives the landlord the right to contact any reference you have listed to check your credibility. To reserve the property you are applying for you must pay a deposit of one weeks rent while the agent checks over your application. If your application is not accepted, the agent must then refund the deposit back to you. Although, if you’re application is successful, your deposited money can then become a part of your rent in advance. Third step is coming to an agreement with the landlord on the starting date of the tenancy. You must then sign the residential agreement and pay the bond and rent in advance.
Where does signing a property rental agreement fit into the process of starting a business?
To start up a bricks and mortar business most small business owners will need to sign a rental agreement with the property owner, being a commercial property. This is a key point in the process of starting up a physical store, due to many factors such as location, a place to hold the business itself (ie the building), after analysis that it should be the best place to attract consumers, etc.
How do Property rental agreements impact on different areas of business?
Rental agreements impact on different areas of business such as finances (finances including expense of renting, damages, other expenses such as rates), the lease (how long the business is able to stay in that location, what type of agreement you’re under) and the ability to expand your business and location.
What terms are used in Property rental agreements?
The most commonly used terms include;
Bond: A rental bond is a security deposit a tenant pays at the start of a tenancy.
Rent: A tenant’s regular payment to a landlord for the use of property or land.
Tenant/Lessee: a person who occupies land or property rented from a landlord.
Lessor/Landlord: a person who leases or lets a property to another.
Security deposit: A monetary deposit given to a landlord as proof of intent. Security deposits can be either refundable or nonrefundable, depending on the terms of the transaction.
Where can I find more information about a Property rental agreement?