It is a hectic process trying to look for a new home. It involves hiring a real estate agent, touring properties, choosing a home, and making an offer. Your labour has been productive, and now, it’s time to move into your new home.
If you are reading this blog post, it means that your offer was accepted and you passed the screening process. Now, you must understand the process of signing a residential lease.
We hope you find our blog informative, this write-up answers all your questions, including:
What must you pay on the signing of a lease?
Who should sign first?
Who gets a copy?
You found a pet-friendly property to rent, what do you do?
What is a pet deposit?
WHAT IS A LEASE AGREEMENT? IS A RENTAL AGREEMENT THE SAME?
A lease agreement is a formal contract between a tenant and landlord or the landlord’s representative, confirming the terms and conditions for living at the landlord’s rental property in exchange for rent. A lease agreement usually spans over an extended period, usually between one to three or more years.
A rental agreement is also a formal contract between a tenant and landlord. This agreement is similar to the lease agreement, it confirms the terms and conditions for rental but is usually for a shorter duration. A rental agreement typically lasts between one to a few months, but less than a year.
Once the lease is signed by all parties, it becomes a legally binding document.
WHAT IS REQUIRED WHEN SIGNING A LEASE AGREEMENT?
On the signing of the lease agreement, the tenant must pay the first month’s rent and a security deposit. The security deposit is usually the same amount as the rent amount. This deposit is refundable at the end of the lease, provided that there were no damages incurred during the lease.
In some cases, the tenant has to pay the first and last month’s rent at the start of the lease term. This depends on the terms and conditions of the lease agreement, so it is best to ask questions during negotiations. Usually, two or three months’ rent will be due on signing, one of them being the security deposit.
WHAT IS A PET DEPOSIT?
Note that if you get a pet-friendly property, your landlord would also ask for a pet deposit. A pet deposit is similar to a security deposit and is to cover the costs of any damages to the property caused by your pet during the rental. The cost of a pet deposit usually starts at USD$250.
WHO SHOULD SIGN FIRST ON THE LEASE AGREEMENT?
The landlord or the landlord’s representative will send a copy of the lease agreement to the tenant for review. Once the tenant agrees with terms and conditions, he goes ahead to sign. The tenant should sign first, to review and request any necessary change to the agreement. Ensure that you ask the landlord any questions that you’re unsure about in the clauses in the lease agreement.
Letting the tenant sign first prevents the landlord from ending up with multiple signed leases.
WHO GETS A COPY OF THE LEASE AGREEMENT?
Both the landlord and tenant would get a copy of the signed lease agreement. If a property management company or real estate agent is involved in the transaction, they too should get a copy of the lease agreement for their records.
If you are looking for a property to rent, click here or if you have a property you wish to rent, click here. To see the Top 10 Tips About The Rental Process, click here or call our office today for further assistance at 246-426-9469.