Leasing is the best way out to your business and residential needs. It is a stop gap arrangement done by you until you accumulate the funds to buy the property. It is a win-win situation for both the parties engaged in such a deal. The tenant can move in and out whenever necessary and the landlord gets profit on the property along with appreciation value. But all the deals that include property or money should be dealt with utmost care. It is necessary for you to analyze all the factors before you sign the dotted line at the bottom of the lease agreement.
What should you look for?
Have you ever entered an agreement before? If yes, then you must know at least a few basic points about it. But if the answer is a no, then you need to do some homework before you jump in the pool. So, let us look at the things that need to be considered before you get into an agreement.
•The first thing that needs to be looked upon is the landlord and his details. The landlord should be a genuine party and have all the relevant details and documents to claim that the property is owned by him/her. This way you know you are entering a legal contract and that your money is not going down the drain. It is also the other way around; as the tenant should also be able to provide the details on his background and that he is not engaged in anything that is unethical.
•The next step is to look at the property and its authenticity. It should not be illegal as this can pose a threat to both the parties. The details of the property should be printed in the agreement as this will ensure that the property is on lease and if any issues are faced in the future, it can be a proof for the tenant. The date of the contract should be clearly mentioned with date month and year on it. This will ensure that the contract starts on a date and ends on a date as discussed between both the parties.
Both the parties should do a close research on details that may make a difference in the decision making. The tenant should be well aware of the landlord; similarly, the landlord should know where the tenant is from, what he does and what the purpose for acquisition is. Don’t just dive into something that looks lucrative.
Minute details on the contract
Every single detail discussed between the parties should be documented. This will ensure that there is no fuss about all these things at a later stage. There are many rules and regulations of the society or the commercial premises which should be adhered to by the tenant and the owners of the property. This is for the smooth transition on a regular basis. The amount of the rent should also be written in the contract in both numerical and words format. This is to be sure that you are paying as agreed by the parties in the contract.
It is easy to get into a contract which binds two parties but difficult to get out of it if there are any disputes. All this will lead to a lot of time wastage along with money. Moreover, it has a mental impact on the parties and keeps on piling up every time. The laws are different for commercial and residential leasing and that is standard for countries. It is necessary for you to know the difference between the two as both are used for different purposes. You need to know how to read the fine print which can save you a lot of time and energy.
You can take help of the experts in this field who charge a commission on the transaction you do with them. But at least you have the surety that whatever you have done is right and ethical. Nothing comes free of cost in this world and knowledge is the biggest game changer for all. So, have the right knowledge so that you can do these transactions on your own in the future and save the cost of the commission paid to the agents and middlemen. The above points will make sure that you know all about the leasing agreement and do the proceeds smoothly. Anything that is not documented is of no relevance to the law and cannot be abided by. So ensure to keep everything black and white to be free from all problems.
Many people make mistake of not reading the contract through. This is vital although it can be tedious. The time that you spend on reading every point of the contract can save you from being caught in a dilemma later when something comes up as a surprise for you. There have been many instances of landlord and tenants having a dispute over a trivial matter because the tenant hadn’t read the agreement well. It is better to clear before acquiring the property for rent. This helps you from getting into legal terms later.