Regular Rental Agreement and Lease Agreement (Fixed Term Building Lease Agreement)Suppose you made a purchase of a vacant house by investing in real estate. The real estate needs to be newly rented. Generally, a management company is selected to assess rent, determine conditions, and start a new rental application. The first thing we would like owner to consider in the rental application is to decide how you plan to use the real estate in the future. There are two types of lease contracts. For example, if you do not plan to live in the future and intend to continue lending, you will have a regular rental agreement (ordinary lease contract). Or, if you intend to return and live someday, if you want to make sure that the renter moves out, a lease agreement(fixed term building lease agreement) that ensures the end of the contract is an option. Today, we will explain about Regular Rental Agreement and Lease Agreement (Fixed Term Building Lease Agreement). Differences from types of lease agreementsHow do you want to rent your real estate? Even with the contract method, each has its advantages and disadvantages. It is important to make a decision after considering the characteristics and circumstances of each property. When deciding the contract period, you need to understand the “Regular Rental Agreement” and the Lease Agreement (Fixed Term Building Lease Agreement). There are differences between the two not only in the contract period but also in cancellation, and each has its own characteristics. Contract Method
Contract Renewal
Contract Term
Cancellation from the Owner
Possibility of Early Termination from the Lessee
*Fair Reason is limited to situations where there is an unavoidable social common sense, such as when a building has been obsolete and has to be rebuilt. *You cannot change the contract type during the lease term. The above is the difference between Regular Rental Agreement and Lease Agreement (Fixed Term Building Lease Agreement). If you want to use your own building in the future when renting, it is effective to select Lease Agreement (Fixed Term Building Lease Agreement). However, looking at the percentage of contracts, Regular Rental Agreement occupies 97.5% and Lease Agreement (Fixed Term Building Lease Agreement) is only 2.3%. Lease Agreement (Fixed Term Building Lease Agreement) is an unfamiliar contract type and there is a possibility that you may be refused to use it. If you choose Lease Agreement (Fixed Term Building Lease Agreement), you can guarantee the initial contract for 2 years, the renewal contract for 2 times, and the total lease period of 6 years. It is also an effective way for the tenant to apply for the contract under conditions that make it easy to sign the contract. If you are considering a real estate investment, please feel free to contact us for rent recruitment and management methods.
Comments are closed.
|
Details
AuthorArrows International Realty Corp. Archives
April 2023
Categories
All
|