In order to save landlords and rent payers from getting into controversies due to disagreement of tenancy terms, Federal Laws have made the signing of Property Rental Agreement mandatory. This helps gain credentials in the eyes of law, whenever needed.
Drafted by a professional, Property Rental Agreement is a summary of bulk information regarding the landlord, tenant and state tenancy laws. However, the agreement is deemed as invalid if it doesn't elaborate on three basic things. Thus, a valid Property Rental Agreement should contain the name and address of correspondence of the owner or his agent and the occupant, the payable rent and its mode and the respective rights and responsibilities.
Classification of Property Rental Agreement
So far, the US State tenancy laws have classified Property Rental Agreement on the basis of the duration of tenancy. The two broad divisions are thus long-term rental agreement and short-term rental agreement.
Short Term Property Rental Agreement
Better known as monthly rental agreement, this kind of landlord-tenant contract is initially made for a small time span but with a provision for renewal. Landlords can always make alterations in the rent structure or the other tenancy terms with a prior intimation to the rent payers.
Long Term Property Rental Agreement
Commonly known as Lease, this agreement is signed if the tenancy period is more than 1 year. With no renewal options, owners of leased rental units can't enforce changes in the rent structure or any other tenancy terms if the occupant doesn't agree to it.