Landlords and Tenants agreements

Posted on April 1st, 2008 | by John Glenn |

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When any landlord is renting it’s property , there is very much necessity of a agreement that has to be signed between landlords and tenants for preventing the future obligations.

As often seen there are disputes between landlords and tenants on many minor issues concerned with many aspects of leaving the property, or extension of the time period and often landlord wants to free up their property and tenants says that, some more time we want to live. So all these issues can be resolved by signing a agreement between the two that the property is on lease or rental agreement.

So the first decision a landlord has to made when renting a property, is to ask the future tenants about the lease or rental agreement.

By a lease agreement, we means that we are providing a tenancy for a consecutive number of months, usually for one year and by rental agreement, it means that it is on month to month basis. In this type of agreement, both landlord and tenant have to give notice before 30 days that the agreement will not continue any more.

Very often, landlords prefer rental agreements due to the main two reasons that are basically the growth of renting in markets with ample renters and rising rents and secondly, the renting when the unit is up for sale, so they earn unpredictably in such a short period of time, until the property is being sold.

In the areas, where you have trouble in finding tenants for property, and the rent is almost stable, the lease agreement is the best option in that areas, but the only bad factor is that the rent is not increased so frequently and the problem of bad tenant, who is very harder to remove than in a month to month agreement.