13+ Sample New Lease Agreements
What is a New Lease Agreement?
A new lease agreement is a document that has the terms for a lease renewal. This is an agreement between a landlord and a tenant that states the terms and conditions of renting the property. Whether you are having a commercial lease or an apartment lease, you need to have a new lease agreement every time your contract is finished. You need a new agreement that you can negotiate with the landlord. In the new lease agreement, your responsibilities and expectations will be stated. Both of you can protect your interests. It will also prevent any disputes between you.
A lease agreement is different from a rental agreement in terms of the duration of rent. A lease agreement is usually for 12 months or more. The rental agreement is for less than 6 months only. Both documents are needed prior to renting a property. The lease agreement is more detailed than a rental agreement. If the tenant wants to live longer in the property, the landlord and tenant must enter a new lease agreement. This means that they are going to continue their agreement. They are going to renew all the terms after they have negotiated the new lease agreement.
Though, the landlord has no obligation to renew the terms of the old lease. He or she can be free to change the terms if he or she wants. But having a new lease agreement is better so that you can have mutual consent for the new terms. Through it, the landlord and the tenant can have a better business relationship. It will avoid any disputes from happening. The tenant can be confident that he or she can live in the property as long as the new lease agreement is effective. The tenant does not have to worry that he or she can get evicted from the property. It is also a way to fight for his or her rights in renting the property.
A new lease agreement letter can be made by the tenant after his or her old contract is finished. The tenant can request a new negotiation with the landlord. It means that the tenant does not want the termination of the old contract. This is needed if the tenant wants to continue renting the property. To secure his or her abode in the property, the tenant must also secure a new lease agreement. Through it, the tenant will have another chance to rent the property. The tenant does not have to look for a new place. It means that the tenant can still live within the property through a new contract.
Types of Leases
Have you seen a free lease agreement? How much do you know about this kind of agreement? Before you enter this agreement, you must be first aware of its kinds. So, you must know the different types of leases. Read and know some of the types of leases through the following:
Commercial Lease: This is where the landlord will have an agreement with a business for the rental of the property. A commercial lease is done by some companies because renting costs less than purchasing a property. This is done when they do not want to invest a lot of capital. In commercial leases, you sometimes have to deal with commercial real estate brokers.Net Lease: A net lease is a commercial real estate lease. In this type of lease, the tenant is responsible for paying taxes, insurance, and maintenance costs. These costs are added to the monthly rent. The tenant is responsible to pay the additional costs that usually the landlord pays. But usually, tenants pay lower monthly payments in a net lease. Because of their responsibility, the landlord decreases the rent. Net leases are common in commercial spaces with prime locations. So, you can have the ideal spot if you will rent on a net lease. You can get highly-sought commercial spaces. You can also gain more control through the net lease. You will be in charge of the maintenance so you can choose the contractors who will do the repair for your home. You do not have to wait for the landlord to get contractors for you. You can decide how the contractors will do the maintenance and repairs.Double Net Lease: This is also known as a ‘net-net’ or ‘NN’ lease. In this type of lease, the tenant is also responsible for taxes and premiums like the net lease. But in the double net lease, the tenant has more expenses in regard to insurance. And the landlord is responsible to pay for the maintenance. In the double net lease, the landlord receives the monthly rent together with the additional payments. Like the net lease, the monthly rent can be reduced. Double net leases are common in commercial real estate.Triple Net Lease: A triple net lease is also referred to as an NNN lease. In this type of lease, the tenant agrees to pay a pro-rata share of all the expenses. This includes the payment for maintenance, taxes, and insurance. There is a base rental rate in a triple net lease. The expenses that the tenant has to pay are also known as operating expenses. They are associated with maintaining a commercial property. The annual rental obligation of the tenant is called the gross rent. This is the base rental rate together with the operating expenses.Percentage Lease: In a percentage lease, the tenant pays a base rent together with the percentage of his or her revenue in the business that is conducted within the premises. So the base rent can be lower than a standard lease because the landlord can benefit from the business of the tenant. The landlord can receive an income from the gross sales of the business of the tenant. So, the landlord and the tenant will negotiate for a ‘breakpoint’ or for a percentage that the tenant has to pay the landlord.Fully Serviced Lease: In a fully serviced lease, the tenant is only responsible to pay the base rent. The landlord is the one who is responsible to pay for the operating expenses or all the other expenses. This type of lease is very attractive for tenants. Their only obligation is to pay for the base rent. They do not have to worry about other expenses. It will be good to have a predictable payment each month. You do not have to worry about the payment for utilities and maintenance. This will lessen your financial obligation. But the downside of this type of lease is you can pay a great amount for your rent.
Elements of a New Lease Agreement
Have you ever wondered what are the things that are included in a lease agreement sample? You should know its components are essential to make it complete. Well, do you want to know some of the elements of a new lease agreement? Read the following:
Information of Parties: The names of both parties should be included in the agreement. You must carefully write the name of the tenant and landlord. Do not forget to write their address and contact information opposite their names. Through this, you will know to whom the agreement is addressed.Property Description: You must give the property description. You must describe the property. You should tell what type of property it is. You should also be clear about the address. To avoid confusion, you must clearly identify the property. You should also tell the things that are included in the property. If it is furnished, you must write the appliances and pieces of furniture that are included in it.Lease Term: You must state the duration of the lease. You should be clear on the time that the tenant can stay on the property. So, you should include a date and a length of time for the term. You should also add the terms that can make it possible again for a renewal.Rent Price: You must give clear details about the rent price. This way, the tenant will know his or her obligations on the rental property. The tenant will know how much to pay you monthly. You must be clear in the agreement about the payment that the tenant will owe to you. If you have a base rent plus additional payments, you have to write it clearly in the agreement. So, you have to state if the tenant has to pay for utilities, maintenance, taxes, or insurance. You must add those expenses to the base rent.Penalties: You should be clear about penalties. If the tenant fails to pay on time, you should write if you need late fees. You should have complete terms about penalties. This way, the tenant will know his or her obligations regarding penalties. The tenant will be careful so that he or she will not have to pay penalties.Termination: You should have terms about termination. You may never know when one of you will want to leave the contract. So, you need to have terms so that you can end the contract if needed. Unexpected things may happen. So, to ensure that one of you can freely leave when he or she is not happy with the agreement anymore, you must provide a termination clause that can let any party be free when he or she wants to leave the contract.Governing Law: You should have the law that you have to follow within the agreement. To be able to do this, you must check the laws of your state to know the right laws that you have to include in your agreement. Be sure that you can comply with these laws.Maintenance Policy: You need to have terms about maintenance policies. You have to negotiate about who is going to pay for the maintenance. Maintenance is an important aspect when you have a home. It can be needed anytime. So, the two parties have to agree on who will take care of the maintenance expenses.
Tips on New Lease Agreement
Are you looking for a new lease agreement example? Do you need it because you want to have some tips on new lease agreements? If you are looking for tips, we can help you. We can provide you with some tips that you can use. They are the following:
Know the Law: You should ensure that you have checked the laws of your state when having a new lease agreement. By knowing the law, you can protect your interests. You will know your rights so no one can deceive you if ever.Make Your Document Clear: You have to be clear in everything. Your agreement should not raise any questions. You should be clear about all the terms of the agreement. This way, you will not have any dispute with the other party.Include a Pet Policy: You should include a pet policy to the agreement. Not all landlords accept pets. So, if you do not want to admit pets in your property, you should write it in agreement. This way, the tenant will not bring any pets to your property.Specify Restrictions: You must include rules for restrictions in your agreement. If ever you do not want too many visitors or you want to prohibit too much noise, you must put restrictions about these. You should be vocal about your rules with the tenant.
How to Write a New Lease Agreement
Do you need a new lease agreement template? Are you about to create a new lease agreement? Maybe you are looking for some steps that you can use in writing. Well, we can offer you some steps that you can use. Have the following steps:
1. Consider the Old Lease
To begin with, you must consider your old lease agreement. You should know the terms that you want to retain in your new lease agreement. Review the old lease so that you will know the things that you want to still put in your agreement.
2. Make an Outline
Then create an outline for your lease agreement. Know the provisions that you want to write. So, you must write all the needed elements for the agreement. This way, you can write good content for all the provisions.
3. Write the Agreement
Now, you can start writing the new lease agreement. You can start writing a draft so that you can finalize your agreement. Write all the components of the agreement. Be sure to be clear in each section.
4. Consult a Lawyer
After finalizing the agreement, you must consult a lawyer. Do not make the agreement final until you have done so. You must be sure about all the contents of the agreement. You should do this to protect all your interests. If the lawyer finds the agreement good, then you can make the tenant sign it.
Is a new lease agreement necessary?
Yes, it is necessary. Upon renewal, you need a new lease agreement. You need it to protect the interest of both parties.
What is the benefit of a new lease agreement?
A new lease agreement can give a good business relationship between the landlord and the tenant.
If you want a lease renewal, you should have a new lease agreement. By having it, both the landlord and the tenant will have the peace of mind that they need. They will know that their rights are protected. Well, do you need a template for a new lease agreement? This post has 13+ SAMPLE New Lease Agreements in PDF | MS Word. Creating a good agreement will be easy for you with the help of these templates. Download now!