Steps to determine the best terms for leasing

Written By Steps To Faculty Published June 14th, 2010

Determining the best terms for leasing will save you from painful experiences and future financial troubles. Knowing the true costs that you will shoulder in the future based on the agreement is very necessary. Find out how to determine the best terms for leasing.

Step 1 Read the fine print first

Do the terms indicate that you will pay for management fees, cleaning, repair and maintenance of various other items, insurance, rates and taxes? Find out what the real terms of the lease agreement is. Is it a capital lease in which you can purchase the property at the end of the lease for a substantial discount? These factors are essential to determine the best deal for the lease.

Step 2 Review the rent clause

The terms you read and sign could be fair, but within the same terms is periodic rent review containing: the percentage of increase based on the rise in cost of living, the set minimum percentage increase put in effect at each review period, and the fixed increases are stipulated in the lease agreement. If the lease agreement with the rent reviews are in harmony, and realistic, then it you could consider it the best agreement.

Step 3 Determine what you are accountable for

The provision for subleasing where you give part of your unit to someone at will make yet another important term in the lease agreement. Besides, a clear knowledge of who is responsible for the improvement of the premises in the terms is not to be ignored. Who and how the improvements are done should be stated upfront.

Step 4 Check everything over again

Get the disclosure statement to be aware of all the details within the premise, the financial responsibility of the landlord and tenant on this so that you will not carry much burden on your own. Ensure you are comfortable with all the details in the agreement before you sign. Read through the final lease draft and digest it well. Counter-check the promises given to know if they are in the document, do proper inspection on the property, learn something from your fellow tenants about their relationship with the landlord, and know about the outgoings in the premise including the maintenance and gardening.

Remember, a lease is a binding agreement once signed.


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Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

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