As noted above, the lease should also indicate whether a deposit is required and how much the deposit will be. The deposit is a sum of money that the tenant pays in advance to the landlord. If, during the tenancy, the tenant meets the requirements of the tenancy agreement and returns the unit to the lessor in the condition he rented, he should be reimbursed for his deposit. In some countries, homeowners must also include interest if they move the deposit. In this lesson, we will delve into different types of rental contracts and explore them when you work as real estate professionals. Some types of leases are generally more common in residential rentals than in commercial rentals and vice versa. We will look at the most important elements and differences, and help them understand them through examples. In Section 4, the parties agree that the tenant is responsible for his personal property and that he keeps it at his own risk on the rental property. This provision suggests that tenants acquire their own insurance for tenants to cover possible loss or damage to their property. This provision also tells tenants that if a person occupying the premises is violated and wishes to sue the landlord for damages, such claims must be filed within one year of the breach. The landlord may require the tenant to pay a fee to change the locks after the end of the lease. This “re-key” tax must be documented in Section 6.
When setting this tax, homeowners must also consider the cost of changing mailbox locks or modifying/replacing key access cards after a tenant has evacuated the property. If Sandy, when she asked him, had already considered selling the house, she might have considered including a rental option to herself in the lease instead of the pre-sale. Under the rent-to-own option, Jane and Todd would lease Sandy for a period of years at the end of which they would have the opportunity to purchase the house at a pre-agreed price. This is an advantage for Jane and Todd, who don`t need to live anywhere else if they have fun living in the house they rent. It is also advantageous for Sandy as a landlord, because she does not need to go through the cost or thought and sale of the house (provided that her tenants decide that they want to exercise the option of buying the house at the end of the predetermined term.) In this case, the rental principles give the landlord the right to take legal action against the tenant`s property and effective eviction. Effective eviction means that the tenant is removed from the lessor because the tenant has not complied with the obligations arising from his tenancy agreement or other tenancy agreement. So if Jennifer and Amy, in our example above, enter into a lease with Big College Apartment Company, Inc.