A Lease – Owning a Property for a Specified Period of Time
A lease is a contract between the owner and a user of property. In business lease agreements, the owner (lessor) receives financial compensation and in exchange, the tenant (lessee) is given the right to operate his or her business on the property for a given period of time.
A lease on land or a building also means is an agreement that allows the lessee to use a property in exchange for rent to the landlord for a specified duration.
Land leasing offers easier access to land use for a number of purposes including commercial, residential or agricultural use.
A Leasehold land tenure is a form of land ownership where landlord surrenders the rights to another person for exclusive possession of land for a defined stated time in exchange for a premium (land rent) also paid at a specific time agreed. The transaction being contractual in nature permits parties to define the terms and conditions of access and usage. Obtaining a land lease may be through a government authority, an institution or an individual with a private mailo land or freehold tenure and all depends on the tenure system of the land being leased.
Lease Agreement – Terms and Conditions in a Lease Contract
In a lease contract, there are key terms and conditions to put into account by both the landlord and the tenant/lessee. The following terms are aimed at creating harmony between the two agreeing parties:
Leaser and Lessee (Landlord and Tenant)
Both the landlord (leaser) and the tenant (lessee) should know each other when going into an agreement. The landlord will want to get financial information about the tenant to be sure that he can pay the rent and agreed fees promptly. The property owner may ask for the tenant’s information to confirm, for example, a guarantee, payroll or copy of the bank statement to build confidence in the ability of the lessee. On the other hand, the agreement should contain the landlord’s details and also verify his ownership details.
Why Do I Need a Lease Agreement?
You need to have a lease agreement as it explains the responsibilities of a landlord, sets rules and regulations for the tenants living in the property. This kind of agreement helps in preventing possible disputes with between the two parties in case they arise as each of them is guided by its provisions.
If you give out a property and you don’t use a lease agreement, you could lose rent, be liable for illegal activities on the property, receive penalties for unpaid utility costs, or spend a lot of money on property damage repairs and legal fees. Anyone who rents out a home, land, or a commercial building should have a lease agreement. Landlords and property managers should also keep a copy in their files of the lease agreement.