Critical tips for prospective lessors

James Whitehead / Khmer Times No Comments Share:
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When you are looking for the best tenants for your property, regardless of the term of the tenancy, it is necessary to ensure you have a well-prepared property and legal lease document for your prospective tenants. Below are several major things to include in your lease agreements when creating or signing a residential tenancy agreement, thanks to realestate.com.kh

What is lease contract?

A lease contract is a formal document that properly identifies the landlord (lessor), tenant (lessee) and the leased property. This document further states lease term and rental fee, and detailed terms and conditions of the lease agreement.

Who should be in the lease contract?

When it comes to obtaining a lease, it is strongly recommended that you draw up a written agreement.

This legal contract needs to be completed by the lessor and lessee so that both parties are 100 percent clear on what their rights and obligations are.

This contract also allows and specifies the tenant to temporarily use the property of the owner, legally, in exchange for paying a rental fee to the owner. It is essential that both parties keep a copy of this agreement to refer to when in doubt.

In the contract, both parties can set the clauses to protect themselves if any circumstances were to change for either the lessor or lessee and how this should be remedied if these circumstances arise.

The lease agreement should contain:

Both parties must sit together and write up clearly what they expect from each other. These include:

  • The description of the property (which describes the current location and overview of the property);
  • The names, signature or thumbprint and addresses of both parties;
  • The current rental fee and reasonable escalation in the future;
  • The rental payment term (monthly, quarterly or yearly);
  • The deposit amount;
  • The monthly payment amount;
  • The lease period;
  • The notice period for termination of contract;
  • The renewable term and condition;
  • The lessor’s obligations;
  • The lessee’s obligations;
  • The renovation permission;
  • The number of residents;
  • The tax obligation (in general responsible by lessor, but can be altered according to the discussion).

All other costs must be paid by the lessee (waste collection, public light, the electricity and water bill) unless otherwise negotiated in the agreement.

Inventory list (separated document):
An inventory list aims to describe all the furniture that is presently existing inside of the property (including photos) before the tenant moves in. This is critical to ensure both parties know what is present in the property – and especially for the lessor to ensure no furniture or chattels are removed without permission or opportunity for redress.

The lessor also needs to list any current defects and the agreement of both parties whether the lessor or lessee must take responsibility to have them fixed. This is generally the responsibility of the lessee. Generally this is made in a separated document.

Ultimately a contract between a lessor and lessee is critical in setting out the obligations of both parties to ensure there is no confusion about any aspects of the tenancy. It will also enable both parties protection if any dispute was to arise.

James Whitehead is the Director of Content @ Realestate.com.kh

Interested in looking for a rental property? Check out on Realestate.com.kh now.

 

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