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Before a tenant agrees to lease a property, they should first take a good look at the lease agreement. Conversely, landlords or owners also need to comprehensively review the contract. This way, disputes can be minimized, if not eliminated altogether. Having just a handshake agreement is no longer a viable option.
The lease agreement should contain the following elements:
The agreement must clearly identify and define the lessor and lessee. Make sure all the details are correct, such as the rental property address and the full mailing address of both parties.
Term of lease
This defines the length of the lease. Stating the exact dates when the lease will start and end is more helpful than ambiguously putting the expected length of the agreement. Instead of writing, “This lease is for one year,” it is better to write the day, month, and year.
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Amount of rent due
To serve as reference for both parties, the specifics of the rent due should be included in the agreement. The full amount over the established length of the agreement needs to be stated, as well as how much would be charged every month or period. The due date should also be specifically listed.
David Baer has served in a leadership role drafting and negotiating complex agreements, such as lease agreements, license and technology agreements, distributor agreements, and many more. For more discussion about these matters, follow this Twitter page.