hotknoieu: Lease Agreements: Rental Lease Contract Benefits for Renters

Oct 31, 2010 Candice Gillingwater

A Rental Contract Protects Renters and Landlords - shho

If you’re considering renting a home or apartment, most landlords will request that you sign a lease agreement. The lease is a legal contract between you and the property owner that clearly stipulates the terms of your stay. Leasing carries significant advantages over both buying a home of your own or renting without the benefit of a lease.

A Rental Lease Protects You From Unexpected Expenses

A lease protects you from having to worry about expensive home repairs. When you buy a home, all aspects of the property become your responsibility to maintain. If a pipe bursts or the electric system is faulty, paying for repairs is your responsibility. Unless you’ve deliberately caused damage to a rental property, however, your landlord must foot the bill for pricey repairs.

Lease Contracts and Rental Property Disputes

In addition to protecting you from unexpected property expenses, the terms of a lease agreement also protect you in the event that you suffer a rental dispute with your landlord. If, for example, your lease contract states that the landlord agrees to pay for any major repairs to your rental house or apartment and he fails to do so in a timely manner, you can use the lease agreement as grounds to file a case against your landlord in court. While a verbal agreement with your landlord doesn’t necessarily bar you from suing for provisions the landlord originally agreed to, it makes your case much more difficult to prove.

Lease Contracts Sometimes Offer a Purchase Option

Individuals who merely rent a property month-to-month without a lease contract don’t have the benefit of a purchase option. If the property owner wishes to sell the property, however, he may offer you a purchase option within your rental lease.

Purchase options, often referred to as “lease-to-own” agreements, require you to pay additional rent, but the additional rent goes into a separate account to help you save for a down payment. The time you spend locked into the rental lease gives you an opportunity to save additional funds or improve your credit rating so that you will qualify for a mortgage loan at the end of the lease period. Once the lease expires, you have the option to purchase the property. Without a written lease agreement, however, a purchase option is rarely available.

Save Money By Leasing Instead of Buying

While most landlords require a security deposit before they will have you sign a lease, a security deposit costs you far less than a down payment on a mortgage loan for a new home. In addition, you avoid paying various fees that lenders commonly charge during the mortgage financing process.

The monthly rent your landlord charges is clearly stated within your rental lease. Thus, you don’t have to worry about adjusting interest rates. You’re also spared the cost of mortgage insurance and homeowners insurance – which typically exceeds the average cost of renters insurance.

Negotiating the Rental Lease

Negotiating the terms of a mortgage contract is often an impossibility. You can, however, negotiate with your landlord for better leasing terms. Most landlords use a standard lease form for all renters. That does not mean, however, that you can’t request reasonable changes to the terms of the lease that would benefit all parties involved.

Private landlords are usually more open to lease negotiations than large apartment complexes or rental companies. This is because apartment complexes and rental companies lack a personal investment in the lease contract. Their role is merely to find an individual to inhabit the home or apartment. Private landlords, however, have a personal financial investment in their home. If they feel you’ll take good care of the property and submit timely payments, they will likely decide that expending time negotiating your lease terms is preferable than spending time waiting for another acceptable renter.

Understanding Lease Contract Provisions

Regardless of whether you choose to rent under a lease agreement or purchase your own home, keep in mind that you must abide by the provisions listed within your rental lease. Before signing a rental contract, read it carefully and make sure you agree to the terms listed to ensure that you don’t unintentionally trap yourself in an unfavorable lease contract.

How to Write a Lease Agreement

Tenants' Rights – Breaking an Apartment Lease Without Penalty

Sources:

Georgia Department of Community Affairs: Leases and Rental Agreements