A lease contract is a custom contract between two parties that are entering into a lease agreement. According to the lease contract, one party allocates a location or space or product or lease or rent to the other party under the conditions specified in the lease contract. Now-a-days lease contract can be applied to leasing a property, location, workspace, utilities, etc. The lease contract is a simple agreement that binds both the parties entering into a lease agreement with some clauses pertaining to the lease. Following the below steps to make an effective lease contract.
Points to be kept in mind while preparing a lease contract:
- If a property or location is being given for lease, mention the whole and exact address of the location. If a product is given on lease, then mention the specifications of the product.
- The property or product should be categorised into specific details so that in case of discrepancy, the lease contract can provide the exact information on the type of property or product taken for lease.
- The number of people involved in the contact with their names, addresses, and contact numbers should be mentioned in the lease contract.
- The terms of ending the lease agreement should also be made part of the lease contract. This is because the party taking the lease can make alternative arrangements in case the situation arises to give back the leased product or property.
- If there are any witnesses in the event of negotiating and signing the lease contract then their details should also be a part of the agreement.
- The scope of lease is to be a part of the lease contract. This is to limit the usage of the location or space to the extent the lease is provided.
- The inseparable component guiding the lease contract is the amount to be paid for the lease along with other payment terms.