Want to know more about leases? At Horizon Management, we know all there is to know about them. In this article, we’re exploring why they are so important.
What does a lease do?
Leases are the basic foundation of any property exchange. They clearly detail the terms of property ownership, the services that will be provided, the obligations for each party and perhaps most importantly, how the services will be paid for.
They provide some reassurance for the tenant too. Generally, most leases will state that the landlord has an obligation to manage the property effectively and properly maintain the building, including the foundations, roof and garden, while providing repairs where necessary.
Of course, in exchange for these services, the tenant will pay what’s normally known as a service charge to cover the costs for the landlord. But these must be charged fairly, or the landlord could be in for a costly penalty – again, a lease makes sure this is clearly stated.
Who does a lease protect?
As you can see, the lease should provide reassurance and clarity for both parties involved in the property letting. Most modern leases make sure that both parties are treated fairly and agree to stick to their obligations. There will also be a section of the lease that details what will happen, should either party fail to uphold their end of the agreement.
Without a lease, there is no legal protection covering either side of the arrangement, leaving it open to abuse and negligence. Nobody wants that, so often, a draft lease can be drawn up to make sure everyone – landlords, tenants and lawyers – agree on it first. If there’s a mistake on a lease, you are also able to apply for an amendment from the court.
So leases are put in place to protect everyone involved!
Rules and regulations
Without a lease, your landlord could stroll right into your home whenever they wanted to. It is theirs, after all! A lease lays out the rights – also known as easements – entitled to those involved in the property let.
With a lease in place, a tenant can enjoy living in their property in peace, without interference from the landlord or even the landlord’s other tenants. If there are any special benefits that come with the property like a parking space or a terrace, the tenant can also cement their use of these facilities with a lease in place.
The Bottom Line
Leases make property management run smoothly and provide the much-needed clarity that can come with the sometimes-confusing world of property let. These are important legal documents that should always be looked over by a lawyer – both for the landlord and tenant.
It’s also always a good idea to seek advice from a reputable agent to be clear on what should and shouldn’t be included in a lease. Here at Horizon Management, we’re happy to give you solid, useful advice and answer any questions you might have about drafting up a lease. Don’t hesitate to get in touch.
