Tenancy Agreement And Lease Agreement
In most cases, leases are considered “monthly” and automatically renew at the end of each period (month), unless otherwise specified by the tenant or lessor. In the case of a rental agreement, the lessor and the tenant are free to modify the contractual conditions at the end of each monthly period (if the corresponding termination procedures are respected). The duration of the lease and the amount of the monthly rent are documented and cannot be changed. This ensures that the landlord cannot arbitrarily increase the rent only and that the tenant cannot simply leave the property whenever he wants, without effect. An agreement should also be used when it exists between family or friends. There are two types of rental: the periodic lease (more than 90 days) and the temporary lease. This article focuses on periodic rentals. Additional residents: The agreement may contain a provision limiting the number of occupants in a rental unit or requiring permission from the lessor before additional residents can live in the rental unit. If additional residents are added, a lessor can only increase the rent if the lease agreement contains a term that allows the rent to vary according to the number of occupants or the parties all agree to sign a new lease. Often, landlords have the option to buy in a rental agreement if they want to sell a home or unit, but the potential tenant does not qualify for a lender-based mortgage. This may be due to the fact that the tenant has poor creditworthiness or is not able to pay the full amount of the deposit.
A lease is ideal for a tenant who cannot commit to a rental period of 12 months.