As the housing market continues to grow in popularity, more people are interested in renting rather than buying. However, before signing a lease agreement, it`s essential to know the different ways in which a lease can be determined.
1. Fixed-term lease: This is the most common type of lease agreement. It specifies the exact length of the rental period, usually for one year. Once the term is over, both parties can decide whether to renew the lease or not.
2. Month-to-month lease: This type of lease agreement doesn`t have a set end date but instead automatically renews every month. It allows for more flexibility, but landlords may require a higher monthly rent to compensate for potential turnovers.
3. Rent-controlled lease: This type of lease agreement is more common in metropolitan areas and some states. It`s a type of fixed-term lease that limits rent increases to a certain percentage per year. This helps tenants avoid the risk of sudden rent spikes, but landlords may not be as eager to offer this type of lease.
4. Subleasing: This is when the original tenant of a rental property rents it out to another party. This type of lease agreement can offer the renter a chance to save money, but it`s crucial to make sure that the sublease is legal and approved by the landlord.
5. Shared space or roommate agreement: In this lease agreement, multiple tenants jointly agree to pay rent for shared living spaces. This type of lease agreement is common in college towns or among young adults just starting.
It`s necessary to carefully read and understand the terms of your lease agreement and ensure that it`s legally binding before signing. A lease agreement will protect your rights as a renter, but it also legally binds you to specific responsibilities and obligations. When in doubt, it`s always best to consult with a real estate lawyer or agent to ensure that your lease agreement aligns with your needs and goals as a renter.