What Are All the Types of Lease Agreements?

types of lease agreements

With the rising price of houses for sale and investment firms buying homes up left and right across the country, more and more people have been forced to rent. Renting a home means you have to sign a leasing agreement. These detail the rules and rights you have as a tenant. You must understand everything in it, inside and out, to protect your housing rights. But that can become harder with the multiple different types of lease agreements you may have to sign.

Not all types of lease agreements are between a landlord and tenant, and not all landlord-tenant lease agreements are for housing. If you’re unsure what type of lease agreement you need to sign or have signed, contact the real estate attorneys at Mazzoni Valvano Szewczyk & Karam.

What Are All the Types of Lease Agreements?

When most people think of a lease agreement, they think of the standard lease agreement. Standard lease agreements are between a landlord and at least one tenant. They always detail a one-year-long arrangement with a start and end date. This agreement forms the basis that most of the other types of agreements follow.

Month-to-Month Lease Agreement

This type of lease agreement applies to housing and commercial business agreements that include a landlord and tenant. Where the standard agreement covers one year, this type of contract changes that. It’s month-to-month, where the agreement is being constantly renewed. It’s perfect for tenants who don’t plan to live in the apartment for an extended time and for landlords who have a unit available for a few months but not a full year.

In these agreements, the landlord and tenant also don’t have to give as much notice before evicting the tenant or abandoning the landlord’s property. They only have to give each other fifteen days’ notice for the first year. If the month-to-month situation lasts longer than a full straight year with no breaks, then they have to give each other at least thirty days’ notice.

Rent-to-Own Lease Agreement

In a rent-to-own lease agreement, the rules and regulations are all the same until the end. While the details that refer to the leasing period remain the same as a standard lease agreement, there is an added section other types don’t have.

This agreement comes with the expectation that after you lease the property for a time, you will eventually have the chance to purchase a property for an agreed-upon price. This is good for the tenant so that if the landlord is considering selling the property, the tenant gets the chance to make the first offer. In some cases, rent payments are applied to the property’s purchase price.

A landlord would consider this type of agreement if they are unsure whether they want to keep the property. In many contracts, they are not required to sell it, but will still require the tenants to pay for the property’s maintenance and upkeep.

Roommate Lease Agreement

This type of lease agreement isn’t between a landlord and tenant, but between tenants living on the same property. When tenants aren’t partners or family members, they will want to have contracts to make sure everyone understands their responsibilities. While you may think you can trust your friends to cover their share of bills, chores, and more, sometimes it is better to put it in writing. This is especially true with strangers you didn’t know before becoming roommates.

Roommate lease agreements will outline each tenant’s responsibilities within the rental unit, including the terms and conditions for living together.

Sublease Agreement

Sublease agreements are amendments to the original standard lease agreement in a way. Sometimes landlords will grant tenants the responsibility and the right to rent out a room as they rent out the property. If there is an empty unit or room that the landlord doesn’t want to fill themselves, the current tenant can find someone to fill it, charge them a specific amount, and make their own leasing agreement with this new person.lea

This ultimately leads to someone being the tenant to another tenant in simple terms. When this happens, it is also known as subletting. These subleases will have restrictions based on what the original standard lease agreement allowed, but they can greatly resemble standard agreements.

Commercial Lease Agreement

When a lease agreement is for a business location rather than a housing location, it is a commercial lease agreement. This is an overarching type of agreement. You can find commercial sublease agreements, commercial rent-to-own agreements, and commercial month-to-month agreements.

Contact MVSK Law For Help With Your Lease Agreements

Real estate law can be complicated with its detail-oriented contracts and documents. Contracts and documents can decide a lot, including your housing and whether or not it can be taken away. Don’t treat something as important as a leasing agreement lightly. It may be something you sign in a few seconds, but it’s something worth having a lawyer go over. Even if you’ve already signed your lease agreement, make sure you learn about what you’ve signed. Contact the real estate attorneys at Mazzoni Valvano Szewczyk & Karam for help.

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