What is a lease agreement?

A lease is a legally binding contract between a lessor and a lessee that gives the lessee right of usage of property legally owned or managed by the lessor for a period at a cost. Lease agreements are governed by the landlord-tenant law.

A lease agreement sets out the renting charged and when it is due, lease period and the one responsible for the maintenance of the property. It also has the termination clause that describes the consequences of termination and the rights of each party to terminate the lease. The lesser can not change, remove or add extra conditions without negotiating with the lessee. The different types of lease agreements are fixed term, short term and periodic lease agreements.