Lease Agreement and Rental Agreement
Residential Lease Agreement:
FIRST, THE BASICS: A Residential lease agreement or rental agreement is a document that sets down terms, rules and obligations between the property owner, known as the Landlord, and the party wishing to rent the property, known as the Tenant. Rent is the consideration paid by the Tenant to the Landlord in exchange for the exclusive use of the property.
Keep in mind that there really is no formal document. Any stipulation, rules or terms that both parties agree upon is valid and may be included within the agreement as long as these terms are lawful and the intent is to form a legally binding relationship.
There are two common types of residential agreements: a lease and a month-to-month tenancy agreement.
Lease Agreement: restricts both parties from changing any of the terms or rules during the entire lease period and must be in writing to be legal enforceable. It is a common practice for a lease period to be 1 year or more.
Some of the essential elements of the agreement should be the property address, start and termination dates and the signatures of all parties involved.
Month-to-Month Tenancy Agreement: is for an indefinite period, with rent usually payable on a monthly basis. The tenant does not have to stay in the unit for any specific length of time. Some obligations as to notice of moving or eviction may exist by statute. In many cases, the rental agreement itself can be in writing or oral. However, the document should be in writing if any type of fee or refundable deposit is being paid. A written document will establish and make clear the obligations and terms of all parties.