An agreement between the landlord and the tenant for the occupation of an apartment exceeding 3 years is also known as an apartment lease. The apartment lease form or agreement stipulates the rights and obligations of both partiesin their legally binding relationship. Usually and expectedly, the apartment lease form would contain details about the parties, the subject premises, the consideration (lease), period of lease and purpose of lease.
The apartment lease form has to be executed by both parties and advisably, be witnessed. Some jurisdictions require the lease to be stamped whilst some would require that it be lodged with the land office concerned. Different states and countries have different laws regarding various aspects or finer details of the leasing process.
The apartment lease form needs to be as detailed as possible to ensure that there are no ambiguities in establishing the rights and obligations of the parties to the agreement. It should include a proper identity of the lessor and the lessee and their contact information. Next, the apartment to be occupied must also be sufficiently identified and if furnitures and fittings are part of the deal, the inventories should also be listed.
An apartment lease would be void if it does not state the date of commencement of the lease and the duration of the lease. Good drafting practice would also expect a provision to state what happens upon expiry of the lease – whether there be an automatic extension of lease or not.
Provisions on the lease payable and the deposits upfront should also be indicated. Deposits include utility deposits and security deposits. Most apartment lease forms would indicate that the deposits may not be used to set off rentals payable until and unless there is a breach and termination of the lease.
Landlords or Lessors also need to be mindful to incorporate the Deed of Mutual Covenants into the lease agreement to ensure that their tenants or lessees observe and abide with the terms indicated in the Deed of Mutual Covenants. Many lessors make the mistake of not incorporating the terms of the Deed of Mutual Covenants resulting in the lessors being liable for the misdeeds of their lessees.