What is a Lease Application

By | September 26, 2011

A lease application is a form that acts as a contract between the owner and the lessee. This is a formal application made to the owner by the lessee by filling up the necessary form. The lease application has specific details that pertain to the asset or property that is to be leased. This can be for both tangible and intangible property. The terms and conditions are also needed to be specified. A lease application is mandatory if the lessee needs to use the asset. It acts as a legal statement for future misunderstandings and conveniences. There are different types of lease agreements and each type has its own form of lease application. While formulating a lease application, certain guidelines needed to be kept in mind, which are as follows:

  • Provision must be made for both the owner and lesseeā€™s name to be filled in. The lease application can be used for legal purposes, if required.
  • The terms and conditions of usage of the asset must be mentioned clearly for the lessee to follow. There should be no confusion as regards to this.
  • The duration and time period of the asset to be used. The dates must be clearly mentioned in the lease application by the owner.
  • The mode of payment for the usage of asset. This can be done as per convenience of the owner and the lessee. Generally, installments are the most preferred.
  • Provisions must be made for accidental damage to the property or asset. There must be certain restrictions imposed and mentioned in the application form.
  • Insurance details of the lessee must also be mentioned for any mishandling of the property.

A lease application is made for anything ranging from a house to a computer program by the owner of the asset.

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