When renting an apartment, why sign a lease?

May 16, 2022
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Finding a temporary housing apartment is a difficult but not impossible task. Difficulties arise once the best alternative is identifiing and both parties agree to sign an employment contract. The parties must pay great attention to this document to prevent being deceiving.

Relationships in the field of rental housing are commonly referring to as hiring. Typically, a lease agreement is concluding for a period of not more than five years. However, there is also short-term employment – up to one year. Short-term work is exempt from certain rules.

If we consider the situation from the perspective of the apartment owner, short-term relationships benefit him because they result in a rent increase when a new contract is signing.

The “long” contract, on the other hand, can include the right to change the rate.

Only the tenant needs to make sure that the landlord does not have a reason to adjust the price as often as he wants.

Simply write: has the right to change the tariff once a year, but not more than once.

The Benefits of a Formal Contract

Usually, the owners of the premises are interesting in concluding a lease agreement. But the tenant also receives some advantages from the conclusion of the lease agreement.

A well-concluded contract saves future tenants from the following problems:

Early eviction before the agreed time.

A sudden increase in rent.

The owner visits the leased property too frequently and without warning.

Mortgage deposit has been gone.

Official contract excludes the possibility that the housing will be renting illegally without the consent of the real owner, which can lead to the loss of paid funds and the need to leave the premises urgently.

In addition, the concluded agreement gives the right to temporary registration at the residential address.

 

What are the benefits for a homeowner?

A formal contract protects the landlord from unscrupulous tenants, forcing them, to pay for damage to the landlord’s property.

If tenants re-let the apartment to third parties, move extra tenants there, and other parameters specified in the contract, the owner of the apartment may resort to the help of law enforcement agencies.

The procedure for improving housing is simplified – repairing the premises, replacing plumbing, and household appliances.

All these actions performing by mutual written agreement either by the tenants, the owner of the apartment or jointly.

It is possible to specify in the contract who becomes the owner of the purchased household appliances upon the lease’s termination.

The sole disadvantage of signing a formal contract is the money aspect.

You will have to pay for the contract itself, and in the process of generating income, the state will need to deduct tax.

This leads to an increase in the price of rental housing, which negatively affects the attractiveness of the tenant.

Renting housing through an agency

Another option for a housing lease agreement is trust management, in which the search for tenants, receiving payment from them, and verifying compliance with all lease conditions is the responsibility of the real estate agency.

It becomes an intermediary between the landlord and the tenant.

Benefits of this type of rental property include:

Landlord will receive payment in any case – the agency must pay regardless of whether the tenant made the payment on time.

Agency employees independently monitor the fulfillment by residents of the living conditions in the apartment.

The organization pays the utility bills, saving the unit owner from these acts.

If there is a need for current repairs, these issues are also resolving with the help of the agency.

Tenant benefits as well since he is protecting from the owner’s “whims,” such as the option to terminate the lease early or raise the rent without notice.

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