Property Leasing and Renting
Property leasing and renting are essential aspects of the real estate industry. Here’s what you need to know:
1. Lease vs. Rent:
Lease: A lease is a legal document that outlines the responsibilities of both the tenant and the landlord during the tenancy. It typically has a set end date, which can range from six months to several years.
Rent: Rent refers to the amount of money a tenant agrees to pay the landlord each month while occupying the rental property. Unlike a lease, a rental agreement is often valid on a month-to-month basis, allowing for more flexibility.
2. Types of Leases:
Fixed-Term Lease: This type of lease has a predetermined end date. It provides stability for both the landlord and the tenant. The tenant knows they have housing for the specified lease duration, and the landlord enjoys a guaranteed income during that time.
Month-to-Month Lease: In contrast, a month-to-month lease automatically renews every month until either party decides to terminate the agreement. It offers flexibility for tenants who may be uncertain about their long-term plans.
3. Advantages of Each Type:
Fixed-Term Lease:
Provides peace of mind to tenants by securing housing for a specific period.
Locks in a steady rental price even if rates in the area increase.
Month-to-Month Lease:
Offers flexibility for tenants in transition or unsure about their rental duration.