Do Tenants Have More Rights with a Rental or Lease Agreement

Will tenants actually have more rights if they sign a lease agreement? To answer this question, we need to look at some of the boundaries that typically get crossed when a lease agreement is not in place. This type of legal contract not only creates rights for the landlord but also for the tenant. 

Let’s take a look at why this is by looking at the definition of a lease agreement versus a rental agreement, how they protect tenants, how they protect landlords, and what details you should consider when creating your own. 

The Definition of a Lease Agreement

Understanding the differences between lease and rental agreement is crucial. There are some slight differences between these two, which may dictate which one you choose. While rental agreements are typically month-to-month, a lease agreement ties both parties in for a certain amount of time (usually six months to a year). 

Lease agreements are also less flexible, setting out the terms of the agreement from the onset and binding both the tenant and the landlord to certain conditions. As we’ll see further down, these lease agreements are recognized by the courts as legally binding and more formal than rental agreements in terms of rent, duration of stay, and rules. 

Rights for Tenants

Tenants can benefit from a lease agreement because the rental amount cannot change during the course of the residency. If you’re a tenant who wants stability in how much rent you pay, then a lease agreement is a good way to bind your landlord to only charge a set amount each month. 

This stability is also evident in the fact that you cannot be evicted without good cause for the duration of the agreement. As a tenant you’ll also know where you stand in areas like maintenance responsibilities, renovations, and care of the property. 

Rights for Landlords

Landlords also benefit from making their tenants sign a lease agreement. These contracts legally bind the tenant to pay a certain amount of rent at a certain time each month. This gives the landlord a degree of stability in deriving a set income from the property and meeting their financial commitments with these funds.

As a landlord, your property will also be protected from major changes, damages, or dilapidation caused by the tenant. With a lease agreement in place, the tenant is accepting a certain amount of responsibility to care for the property within reason. 

Boundaries Crossed Without a Lease Agreement

When lease agreements are neglected, things can quickly go wrong. This usually happens between friends or family members who think it unnecessary to establish any kind of legal obligation between each other. This can be a fatal mistake because these disagreements often lead to hiring a lawyer and spending more than you had anticipated. Let’s look at some examples.

A Breakdown of the Relationship

Whether or not you put a rental agreement in place, there still exists a silent contract between a landlord and a tenant. But what the conditions of that contract are may differ between each respective party, because they haven’t been expressed in writing. If the relationship breaks down for whatever reason, the conditions of the contract can begin to get muddied, especially when it comes to eviction. 

Financial Challenges

If the tenant loses their income, this can create a problem for the landlord, who has their own financial obligations to fulfil and relies on the rental income to meet those obligations. In the same way, if the landlord is having financial problems and wants to increase the rent, they may not have the grounds to do so if there is no stipulation in writing that they can. 

Neglecting Property Care

Who is responsible for roof damage or mowing the lawn on the property? These questions can turn into disputes. He-said-she-said isn’t a legally binding way to ensure that each party knows what their responsibilities are, which is why a written lease is always best.  

Lease Agreement Details: Going Beyond a Standard Lease Agreement

Lease agreements not only cover the basics such as rent and duration of stay, but they can also include other pertinent details like:

• Garden care
• Appearance of the property from the outside
• Cleaning and general light maintenance
• Plumbing and electrical obligations
• Renovating the property through indoor house painting, decorating fixtures, etc.
• Keys, remotes, and other security concerns
• Curfews
• Noise preferences
• Pet obligations and limitations
• Guests, subletting, and prolonged stayovers

These and other details represent some things that may be more important to you than others. By putting your preferences in writing, you can create or request a lease agreement that includes the details that matter most to you or the other party. 

Final Thoughts

Lease agreements and rental agreements protect the rights of both the tenant and the landlord and can mitigate disputes later on. So, no matter how well you think you know someone, always be sure to put your conditions of stay in writing so that your rights are always protected when the unexpected happens.