What is a lease rent

By | December 17, 2011

A lease rent is a document which highlights the important aspects of a transaction between a lessor and a lessee regarding the leasing of a certain item, usually property. A lease rent is a document which is validated by the signatures of the lessor, the lessee and witnesses as well as attorneys, and thus it has legal weight. The terms and conditions which are contained in a lease rent document are legally binding on the participants in the transaction and thus, all efforts must be made to ensure that they are not broken. Some important aspects which need to be kept in mind while framing the lease rent document are as follows:

  • A lease rent document must begin with information about the participants in the lease deal. Names, addresses, professional information and contact numbers must be accurate and updated.
  • A lease rent must be comprehensive and unambiguous. All efforts should be made to ensure that the information provided in this document is factually correct. Discrepancies can lead to legal repercussions.
  • A lease rent document must also contain vital information like duration of lease, amount of money to be paid as security deposit, monthly rentals and so on. It should make mention of the terms and conditions governing the lease rent agreement so that both lessor and lessee are aware of the legal consequences of breaking the lease rent.
  • A lease rent document must also contain specific information about special clauses which are particular to certain kinds of leases like escape clauses, extension clauses, buyout clauses and so on.
  • A lease rent must be compact, precise and well worded. Legal terminologies must be used but there should be a freedom from jargon so that both the lessor and the lessee can be aware of what the lease rent document entails before they sign the dotted line.

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