subject: Lease agreement based on different duration [print this page] Lease agreement based on different duration
A written contract made between two parties with regard to occupation of the house or property is called lease agreement. In other words it is a rental contract agreed by the tenant and the owner of the house. Any type of lease generally has one common character namely the duration or length of the time the contract is made. Residential lease and also commercial lease share many features in common and the major one being the period or time of rental contract signed between the two parties. Depending on the duration of time, lease contract can be classified into three types, namely periodic lease, fixed term lease and at-will lease.
Periodic lease: Usually this type of lease is made for short period of time namely weekly or sometimes monthly. This type of lease agreement is more beneficial to landlords than any other types since they may get income each week or month. If the landlord does not like the tenant then it is easy to terminate the deal and evict the tenant. Normally the owner gives 30 days notice to the tenant for vacating the premises. If the owner wants to sell the house or property periodic lease is the best type of lease he can sign. Since the property remains vacant very often it attracts potential buyers naturally.
Fixed time lease: This type of lease contract is made for one year or more. The rent remains fixed during the entire period and the landlord cannot increase the rent in between even if the cost of living goes up. This is the ideal choice for landlords who want stable income and high return.
At-will lease: The essential feature of this type of lease contract is both the parties will not sign a contract or create a written document. Both the parties agree mutually for contract and this lease agreement does not involve any paper work. This type of lease is suited only for temporary period and there is no guarantee for the money in this type of lease. If the owner forfeits the security deposit then also the tenant cannot make a claim in such type of leases since he has no written document for presenting a case.
