3 Reasons Why Landlords Might Now Want to Sign a Lease

If you are considering using a property you own as a rental property, it is important to understand the logistics involved. For a legally binding rental agreement, a lease must be signed. However, there are those landlords who do not sign a lease. Any property management company will insist that you sign an agreement with the tenant to ensure the property is treated well and that tenant is legally bound to pay the monthly rent. Working with a property management company is a great idea as it offers you added support as well as knowledge when you are entering the position as landlord. Below is an explanation of a lease and why it is important to sign one with your tenants.

What is a Lease?

A lease is a legally binding contract that will list your name as the rental property owner as well as the name of the individual who is renting the space. The contract will include information such as how much the rent payment will be each month, deposit information and additional personal details of the agreement. This creates a legally binding contract between the renter and the landlord. This is done so that the landlord is guaranteed to be paid. If the renter failed to meet the requirements of the deal, the landlord then has legal grounds to sue for back rent or other payments such as amounts for damage to the property.

Why A Lease Would Not Be Signed?

Because signing a lease makes the renting process legally binding, it does not make sense for the landlord to not sign a lease. If you are a renter and a landlord does not bring up a lease, they could kick you out at any time. Sometimes, landlords will avoid signing a lease so they can offer the property to someone else at a later date, perhaps someone who will pay more per month to live in the home.

There is also a possibility that the landlord is doing something illegal and wants no paper trail. The home may be being used under false pretenses or some other crazy reason. You want to sign a lease as a tenant and landlord to ensure you have a legally binding way of getting out of the rental agreement as well as be covered if you are treated unfairly.

It is important to follow proper protocol when renting a home or when in the landlord position. Signing a lease means you have legal backup when it comes to your personal involvement in the rental process. Take time to find out more about a lease when looking at a rental property or becoming a landlord to ensure you follow proper protocol.

At Latitude Properties Limited, you have access to expert property managers who can assist you with learning more about creating a lease for your property. Contact them today to learn how you can begin on the path to becoming a landlord and enjoying a profitable experience rather than just headache.