What is a Property Rental Agreement?

A property rental agreement is a contract between a person who owns or manages property and a person or company who plans to use it. Such agreements can be made for various types of property, including apartments, vacation homes, and plots of land. In many instances, there are laws that dictate that certain clauses must be included in such agreements. Laws may also prohibit certain provisions from being included.

There are generally two parties to a property rental agreement. The lessor is the entity who controls the property and makes it available. The lessee is the entity who pays to use the property.

In some instances, a property rental agreement does not include the presence of the property owner. This is because property owners often hire management companies or agents to deal with renting out their properties. The fact that a property rental agreement is made with a third party does not affect its enforceability, unless the third party does not have the authority to enter the agreement.

Property rental agreements can be made for residential properties such as apartments, houses, or vacation homes. These agreements can also be made for commercial properties such as retail space, exposition venues, or plots of land. A major sporting event is an example of an instance when a person may wish to rent land. An interested party may want to use the property of another as a parking lot during the course of the event.

A property rental agreement is important for both parties. For the lessor, the contract outlines the expectations that he has. These include the amount of money that he expects to be paid and when it should be paid. Such a contract generally also outlines who has the authority to use or occupy the property and how long that authority exists. In the aforementioned example of the sporting event, the property rental agreement, if properly written, would prevent the lessee from utilizing the property for parking once the event had concluded.

The property rental agreement benefits that lessee because it confirms that he has a right to use or occupy a property for certain purposes. Generally, a lessee cannot be denied this privilege solely because the lessor changes his mind. A property rental agreement usually outlines the conditions which can allow the lessor to terminate the contract before its completion date. In these instances, it is common for court intervention to be necessary.