Should You Use A Lease Or A Rental Agreement – Part I

Landlords, as well as, tenants should be clear about whether; they should go in for a lease or a rental agreement. They should know, a simple handshake to seal a deal between landlords and tenants is only asking for trouble in case of a dispute or disagreement later on.

Letting out property without a proper rental agreement or lease is asking for trouble. Today, landlord / tenant relationships are complicated, as a result of various laws and regulations that govern all aspects of renting out residential property. These laws have bestowed added responsibilities on landlords, while ensuring tenants get more rights, and they have instituted small claims court that make it easy to take disputes before a judge. This is why all details of a rental agreement should be recorded in a written lease, or else a month-to-month rental agreement. No doubt, you want to know why you need a lease or a rental agreement.

While, there are some landlords who are rather lazy about using written agreements, and a simple talk with a tenant has them taking his / her rental cheque, and giving the tenant their green signal to move in to the rental unit. Though, oral promises are legally binding, it is difficult, if not next to impossible to prove before a judge. Therefore, both landlords and tenants are advised not to take a chance, but rather go in for a completely legal, rental agreement or lease.