FREE What Is the Purpose of the Lease? [ Definition, Uses, How to Create, Benefits ]

An agreement is an arrangement or negotiation between two or more individuals. It may or may not be a legally binding document depending on the terms agreed upon by both parties. A lease agreement is a written document used when leasing an asset or property and contains certain elements in order to protect both parties.

Before making a lease agreement, it is important that both parties agree to the terms and conditions indicated in the agreement. Should you find the need to create one, the samples and templates available on this page will be useful in helping you make and format your agreement.

What Is a Lease and Its Uses?

A lease is a type of contract that contains essential information regarding the lease of a property and also outlines the terms and responsibilities of both parties. A lease agreement is used when an individual offers to rent or lease an asset or property owned by the lessor. It is important to sign a lease agreement in order to protect both the lessor and the lessee. A commercial agreement is one type of lease used in the rental of commercial spaces. There are lease agreement templates and commercial agreement examples available on this page.

How to Create a Lease

• The first step to do when creating a lease is to download a lease agreement template.
• Write a title on the lease agreement that you are creating.
• Write the names of the landlord and the tenant, their addresses, contact numbers, and email addresses.
• Write a description of the property that is being leased by the tenant and write the address where it is located.
• Indicate the duration of the lease agreement and the price a tenant is required to pay.
• Outline the responsibilities of both parties.
• Both parties should sign the document.

 

Investment agreements are also available for download should you need a template.

Key Benefits of Lease Agreements

A lease agreement is an essential document when leasing an asset or a property. Before any transaction is made between two parties, signing a lease agreement is important. Securing one can have several benefits to both the tenant and the landlord or the owner of the property. The key benefits of lease agreements are as follows:

• A lease agreement allows both parties to understand their obligations and responsibilities as a lessor and a lessee since a lease agreement contract outlines these items.
• A lease agreement contains the terms and conditions that should be followed by the tenant and the landlord. If one party fails to follow the terms, a breach of contract will happen.
• It protects the landlord or the owner from any damage or changes that may be done to the property.
• A lease agreement can also benefit the tenant since a landlord cannot increase the agreed price of the property unless the contract expires and is renewed.
• A lease agreement is useful in resolving any disputes that may happen between the tenant and the landlord.

 

In addition, a credit agreement is one type of agreement used in loan applications.