This is a document issued to safeguard the interests of both the property owner and the company renting it. It basically sets down The conditions for renting the property such as duration and payment which are agreed upon by both parties. The duties and responsibilities of both the landlord and the tenants are described in the lease agreement which however should not be confused with the rental agreement which is an entirely different document that must also be procured along with this one. The proposed lease agreement can be altered prior to signing the document. Once this agreement is signed, the landlord and the tenant are required to meet the conditions stated in the agreement failing of which can lead to legal consequences and unnecessary expenditures.
The agreement mentions important information such as who is responsible for the proper maintenance of the property and for how long the tenants are allowed to use the property as their official premises. The lease agreements have expiry dates upon which either the contract ends or can be renewed as and when needed by the tenants. The prime difference between the lease agreement and rental agreement is that the former is applicable for longer durations such as a year wherein the rental agreements usually last for a few months. The lease agreements are a way of ensuring steady income for long period of time for the property owner while granting
the tenants security against a price hike for the specific duration. Which means that even if the rental value of the property increases prior to the terminal date of the lease agreement, the landlord is not allowed to raise the price of the rent; who however are free to do so in case of renewal of the lease for longer stay of the tenants.
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