As a landlord, I often ask questions of tenants whose life plans do not fit well with 12-month leasing cycles. Depending on the state, landlords may be required to include certain information about their rental or rental contracts, such as asbestos, mold and recorded information about sex offenders. When developing your lease, always be sure to respect your national and federal laws. Section 105 of the Property Transfer Act, 1882, defines leases. Under this section, a lease agreement is “a transfer of a right to the enjoyment of a property which, for a specified period of time, must be returned to the assignor, expressly or implicitly or permanently, taking into account a price paid or promised or a share of crops, services or other valuables to the assignor, on a regular basis or on certain occasions by the person who accepts the transfer under these conditions.” If you are planning to rent an apartment, you will almost certainly have to sign a lease. The difference between rent and rent is that a tenancy agreement usually lasts 12 months, whereas a tenancy agreement usually lasts 30 days. Suppose you move to a new city and you are always on the “rental” side of the rental against the purchase decision. You want to rent a house or an apartment. If you are ready to commit, you can sign a lease that usually lasts 12 months. Some lenders offer leases of six, 18 months or 24 months, but an annual lease is the norm. A rental agreement is ideal for a tenant who cannot commit to a 12-month rental period. It can open the door to many qualified tenants looking for short-term rent that can be in high demand near university campuses or large hospitals. A tenancy agreement or lease is an important legal document that should be concluded before a landlord leases property to a tenant.
The two agreements are similar, but they are not identical and it is important to understand the differences. A rental agreement creates an exclusive interest in the property in favour of the tenant, while a holiday and licensing contract does not arouse any interest in the property vis-à-vis the tenant. Before moving to a rented apartment, many landlords ask their tenants to sign rental agreements. A tenancy agreement is a contract between the tenant and the lessor that gives a tenant the right to reside for a specified period of time in a property that usually includes a tenancy period of 6 or 12 months. A contract between the landlord and the tenant binds the parties to the tenancy agreement. In most cases, leases are considered “month to month” and automatically extend to the end of each period (month), unless the tenant or lessor has not noticed another. With a tenancy agreement, the landlord and tenant are free to change the terms of the contract at the end of each monthly period (if the corresponding termination procedures are followed). When a tenancy agreement ends, tenants are generally not assured of the possibility of renewal (unless they have stable housing).