As mentioned above, leases protect both landlords and tenants. For the latter, the inhabitants do not want to live in poorly maintained land. All persons residing in rental areas should sign the contract, which will then make residents official tenants. Therefore, if one of your tenants decides to let a family or friend stay in their rented place of residence, these clients must also sign the contract. The lessor in a verbal agreement arbitrarily and unexpectedly checks up or does not check at all because of the uncertainty as to when the rent should be checked. The rent verification clause therefore gives the tenant and landlord prior knowledge of when an audit is expected. It gives both parties sufficient time to gather their reasons why the rent should be increased or not. The negotiations will not be as uncomfortable or one-sided as those that have been caught up in surprising audits. Rental cars, equipment, homes or anything else gives the user the use of the item or property without long-term obligation to purchase.

It can save the tenant money on monthly payments, while allowing him to try something for a while. The language of a lease agreement should give the lessor and the taker an exit to break the lease if the lease of the object or house no longer serves its purpose or if one of the parties can no longer work as originally agreed. Tenants may also have personal problems and may need to relocate earlier than planned. In this case, it is necessary to decide what the penalties are and whether the tenant agrees to be responsible. The CPA stipulates that the tenant can terminate the contract with 20 working days` notice. If the tenant resigns before the tenancy period expires, the landlord has the right to apply for an early withdrawal penalty. As a general rule, the lessor cannot terminate the contract prematurely, unless the tenant is in breach, has been properly informed and has not corrected the infringement. The subject of notice deadlines is quite complex and we will dedicate a future full article of Nuts and Bolts. Signing a rental agreement is one of the most important steps in renting a property. This protects you from the financial burdens that may arise.

If you don`t have a formal lease, you may even get to the point of abandoning your rental investment.