When moving into a new rental or property it is important to study the lease agreement and discuss it with your potential landlord. A Lease agreement in real estate can be described as contract/binding document between a landlord and tenant that allows the tenant rights to the property owned or managed by the landlord for a period of time. However it should be noted that this agreement does not provide ownership rights to the tenant.
Shakib Nsubuga, Country Manager of Lamudi in Uganda, said: “Lease agreements protect both parties from future misunderstandings and losses. it is important to understand the lease before signing to avoid unfair terms and conditions.”
This week we share with you the benefits of a lease agreement.
Why is a lease agreement fundamental?
The most important process an individual can make in renting a property is signing a lease agreement/contract. It is important for the renter and landlord to take this step in order for them to protect their own interests. The lease clearly states the outcomes of the agreement so that both parties are aware of the penalties in case the stated requirements are not followed or delivered left with a financial burden.
Why is signing a lease agreement important?
The importance of signing a lease agreement/contract is that this contract/agreement clearly states the terms and conditions that both parties will be agreeing too so that there is no confusion when a disagreement occurs.
What are the basic lease agreement requirements?
The lease agreement usually includes the following:
· The amount of rent
· Bank details/payment details of the landlord.
· What the rent covers
· When the rent is due
· The security deposit terms and conditions
In conclusion, the lease agreement is important because it helps you the tenant understand what to expect and helps the landlord maintain a clear channel of transaction in case of any misunderstandings.