Different Types of Rental Agreements
No matter where you are in your renting journey, you will come across different types of rental agreements. Many variables contribute to which contract would be best for you.
In this blog, we discuss the most common lease agreements you will come across and what makes them different.
Fixed-Term or Long-Term Rental Agreement
Long-term lease agreements are usually contracts that span 1 year with a minimum length of 6 months. This duration can change depending on your location. During this set period, any rules, regulations, clauses and addendums that are put in place must be upheld and cannot be changed.
Short-Term Rental Agreement
These lease agreements typically span up to 6 months, depending on the location. These are much more flexible, allowing people to stay in one place for a limited time. An interesting difference is that these contracts do not automatically renew. Tenants must request an agreement renewal to extend their occupancy beyond the initial term.
Month-To-Month Rental Agreement
If you are looking for short-term commitment to a property, a month-to-month lease agreement is best for you. The contract renews at the end of each month unless notice is given by either party. These agreements are very flexible, allowing renters to relocate as needed and landlords to alter rental costs. In addition, property managers can raise rent or break contracts without penalty.
Sublease Rental Agreement
For some renters, they may want to rent a room or part of their space to lower costs. If a landlord is okay with it, you can set up a sublease agreement. This means that a separate person can rent a designated space, paying rent to the original tenant who passes it on to the landlord. However, the initial tenant is responsible for making sure the terms of the contract are upheld and met.
Rent-To-Own
In certain cases, an opportunity may arise where you can buy the property you are renting. There are two different agreements this is applicable under. A lease option agreement creates an additional clause, meaning the tenant has the option to purchase the property within a set timeframe. On the other hand, a lease-purchase agreement requires the acquisition of the property by the end of the lease period. In other words, once the original lease agreement ends, they must purchase the home. In both instances, the price of the property is determined beforehand.
Lease Renewal Agreement
If your lease is coming up soon, you can choose to sign a lease renewal agreement. This addendum will extend the current terms of the lease beyond the initially set term.
