Lease agreements are a legal necessity for anyone who wants to rent a home or business premises. The terminology used in these agreements can often be complex and confusing. If you are about to sign a lease agreement, it is crucial to fully understand all the terms and conditions. In this article, we will explain the meanings of basic terms you may encounter in lease agreements, making the process more transparent and understandable.

Frequently Used Terms in Lease Agreements

Rent: The amount paid by the tenant for the use of the property over a specified period. Rent is usually set on a monthly basis and clearly stated in the lease agreement.

Tenant: The person who uses the rented property. The tenant is obligated to comply with all the conditions set out in the lease agreement.

Landlord: The person who owns the property and rents it out. The landlord is responsible for providing the property for the tenant's use and fulfilling all the conditions outlined in the lease agreement.

Term: The period of time covered by the lease agreement, including the start and end dates. There are two types of lease agreements: fixed-term and indefinite-term. Fixed-term leases expire automatically at the end of the term. Indefinite-term leases can be terminated by either party with proper notice.

Deposit: A sum of money paid by the tenant to the landlord as security to cover any potential damages to the rental property at the time of vacating. The amount of the deposit and the conditions for its return should be specified in the lease agreement.

Maintenance Fees: Monthly payments made by the tenant to cover the costs of maintaining the common areas of the building. Maintenance fees should be specified in the lease agreement.

Sublease: A situation where the tenant rents out the leased property to a third party without the landlord's permission. Subleasing is illegal, and the landlord can initiate legal action against the tenant.

Termination: The ending of the lease agreement. Termination must be carried out in accordance with the law and the terms of the contract.

Rent Increase: An annual increase in the rent amount for fixed-term lease agreements. The rent increase rate is calculated based on the Consumer Price Index (CPI) or a rate specified in the lease agreement.

In addition to the above, lease agreements may also include the following clauses:

• Special conditions for the use of the property
• Responsibilities for repairs and maintenance
• Rules regarding pets
• Insurance obligations
• Penalties for breach of contract

What to Consider When Signing a Lease Agreement

Before signing a lease agreement, it's important to read and understand the contract thoroughly. If any clause is unclear, don't hesitate to ask the landlord for clarification. Also, remember to get a copy of the agreement.

Here are some key points to pay attention to when signing a lease agreement:

• Rent amount and payment method
• Deposit amount and conditions for its return
• Maintenance fees
• Rent increase rate
• Special conditions for the use of the property
• Responsibilities for repairs and maintenance
• Rules regarding pets
• Insurance obligations
• Termination rights and conditions
• Penalties for breaches of the contract

A lease agreement is an important document that defines the rights and obligations of both the tenant and the landlord. Therefore, it is important to read and understand the lease agreement carefully before signing, and ask the landlord any questions you may have.