Millions of Americans earn a living from renting out properties. But still, leasing management isn't a breeze to learn right away.
Before taking on new tenants, reviewing some leasing basics is essential. This includes the different types of rental leases.
Knowing this can help you navigate your leases better. You might even modify your leasing strategy if one of the types of leases below seems better suited for your needs.
So keep reading to learn more. Below, we'll key you in on several different types of leases.
Fixed-Term Lease
A fixed-term lease is a lease where the tenant agrees to rent the home for a specific period of time specified in the lease contract. This is a common and convenient lease for many renters. Their rent won't increase during this time, and their spot will remain secure during the specified term.
Fixed-term leases are also helpful for landlords in Columbia, SC seeking longer-term rental commitments. Instead of contending with a variety of tenants over the same unit, landlords can count on tenants to stay for a specific term. If they break their lease, they may have to pay a fee and possibly find a subletter themselves.
Month-to-Month Lease
A month-to-month lease agreement is a lease without a fixed term. Instead, renters may pay month to month. Some landlords also charge rent week to week.
This offers a ton of flexibility for both the landlord and renter. Though it's less reliable and therefore less common, month-to-month leases allow landlords to change the terms of their rental agreements more flexibly. For this reason, month-to-month leases are also better for tenants seeking temporary housing.
Joint Lease
Unlike an individual lease, a joint lease is a rental agreement where the occupants share equal responsibility for adhering to the lease. By sharing responsibility, tenants are responsible for accounting for each other to fulfill their lease agreements.
This shared responsibility is beneficial for ensuring you receive rent. If one roommate abandons their responsibility to contribute to rent, the other tenants must make up the difference on their own.
Sublease
A sublease agreement is where a tenant from the original lease agrees that someone not on the original lease will substitute the remainder of their tenancy. The agreement declares that the subleaser will maintain and pay for the rental home in Columbia, SC as the original lease agreement requires.
Subleasing allows units to be continually occupied even if the lease's original tenants must move out. Sublease agreements also hold the original tenant accountable for any contract breaches on the subletter's part.
Cosigned Lease
Cosigned lease agreements require someone other than the tenant to agree to pay for rent and any due fees if the occupant cannot do so. These are usually signed by those with little to no credit and a cosigner with a higher credit score.
This is a great option to offer candidates with poor credit scores. If they cannot pay the fees themselves, you'll still get paid by someone who can.
Count on Us for Leasing Management Help!
At first, understanding leasing management can be tricky. But with the right resources and information, you can achieve great success with leasing!
Our team at HomeRiver Group is dedicated to providing some of the best real estate services in Columbia, SC. These services include consulting your property management efforts! If you're interested in learning more, contact us today.
