Before you jump in and ink your rental lease agreements, it's crucial that you know the different types of tenancy for landlords. Find out how to pick your perfect rental lease agreement today.
1. Periodic Tenancy - If You Need to End Your Lease on Short Notice
As the name suggests, a periodic tenancy comes in a few flavours: week to week, month to month or year to year. When it comes to periodic leases, week to week and month and month tenancies are highly popular with residential landlords.
As a periodic tenancy does not have a specific ending date, your lease is renewed on a weekly or monthly basis. This particular feature is both the benefit and drawback of having a periodic lease.
This makes it much easier for you to end your rental agreement if necessary. Depending on your local real estate laws, you will usually just have to give your tenant a written notice to quit 30 to 60 days in advance. However your tenant can end your lease agreement just as easily so you will end up suffering from lost rent if you can't find a new tenant in time.
If you are thinking of selling or re-renting your rental property to another person in the near future, then a periodic tenancy is recommended because you will have the freedom to end it when needed.
Periodic leases are also a good idea if you need more time to screen and observe your new tenants before deciding to lock him in as your long term tenant.
2. Fixed Term Lease - If You are Looking for Stable Long Term Rent Payments
Fixed term tenancies have an official start and end date - You are not allowed to end your rental lease agreements before they expire unless your tenant agrees to it as well (known as a surrender of tenancy).
The only way you can end your fixed term tenancy prematurely is when you have a strong reason to evict your tenant. If your tenant does not pay you rent or breaks the terms of your lease, then you can file for a court order to remove him.
In exchange for being tied down during your lease period, your tenant cannot choose to leave anytime he wishes without your consent. If he leaves without your permission, he will still have to pay you rent until you can find a new tenant to replace him.
That's why fixed term tenancy are recommended for landlords who are looking for stable rental income in the long run. If you have a pleasant and reliable tenant, you may also want to choose a fixed term lease as an effective way of keeping him.
3. Tenancy at Will - Renting Your Property without Formal Paperwork
If you need a quick and easy way to rent out your rental property, then tenancy at will may be the short cut that you are looking for.
Tenancy at will is usually a verbal rental lease agreement although you can have an informal note with the terms and conditions of your lease. This type of rental lease agreements is also very easy to end - You can simply inform your tenant verbally 30 days in advance.
If you are only planning to have very short term tenants or you are renting to someone you can absolutely trust, then a tenancy at will may be good enough for you. Another valid reason for having a tenancy at will is to use it as a temporary solution until you are ready to have a formal written rental contract with your tenant.
Author Resource:-
Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo http://www.propertydo.com/ - To learn more important tips on rental lease agreements, visit his website today for step-by-step real estate guides, free resources and forms.
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