Tips on Which Type of Lease to Sign for an Apartment

TIPS ON WHICH TYPE OF LEASE TO SIGN FOR AN APARTMENT

In the Mobile AL area, as well as most other places, there are three fundamental types of leases with which a person enters a contract to lease an apartment. Deciding which of them to use can often be confusing. The choice of which one to pick should depend on various factors such as planned length of stay, lifestyle, etc. The options are going to be discussed below to enable apartment hunters know the pros and cons of each one, and which one could best suit your purpose in renting an apartment.

Periodic Leases

These kinds of leases are those that are most suited for short durations of stay in the apartment. In this type of lease, it is recognized that the situation of the tenant might change with frequency, from amonth to month. The tenant is allowed to pay and renew the lease for the apartment each month. While this might be attractive to most people because of the obvious flexibility and liberty it grants the tenant, it must be noted that these types of leases are usually more expensive to compensate for the lack of assuredness and stability on the part of the landlord.Also, with this kind of the lease contract, the owner reserves the right to increase the rent at any point, and the tenant usually has to give the landlord 30 days’ notice before vacating the apartment. In essence, this type of lease is only practicable and advisable when one is sure of needing the apartment for a very short period.

Fixed-Term Leases

This type of lease forms a contract between the landlord and the tenant for the tenant to continue living in the apartment for a specified period, usually three months, six months or a year, although even longer leases are relatively commonplace.This type of lease provides the benefit, usually, of a lower rent over the period of its subsistence, but its drawback is that the tenant is tied down to the apartment, in that he is bound to continue paying the rent to the landlord whether or not he is actually living in the flat. Sometimes, the landlord may let the tenant out of the contract upon payment of a penalty fee. These types of leases are the most common, and worthily so. They are best for tenants who are sure of continued stay for a reasonable period.

Subleases

Subleases are most often a result of fixed term leases where the tenant needs to move out of an apartment, but still locked into the agreement with the landlord, and is still obligated to continue paying the rent. When the tenant finds someone else willing to take possession of the apartment and continue paying the rents, a sublease is formed.Essentially, a three-party agreement between the landlord, tenant, and sublessor is important. Subleases are usually required to have the permission of the owner. They are good if one can get a discount from the original tenant in exchange for taking over the agreement.