Question

1. Explain the purpose and value of a lease for both the renter and the landlord.
2. Distinguish between periodic tenancy and tenancy for a specific time when renting housing.

Answer 1

Question 1:Explain the purpose and value of a lease for both the renter and the landlond.

Answer: Lease is a contract which states the terms under which one party agrees to rent a proterty to another party. The purpose of lease is to protect the landlord and the renter/tenant by informing both the parties their obligations and responsibilities. The lease contains the duration of the agreement, the monthly/yearly payment amount, the procedures for collecting rent and also the obligations of the renter while leasing the property.

In case the renter or landlord disobey any condition of the lease, the lease is no longer applicable. The offending party may be subject to penalty and legal action for the breach of contract.

Question 2: Distinguish between periodic tenancy and tenancy for a specific time when renting housing.

Answer: There are two types of tenancy agreements that a tenant and an owner can make i.e periodic tenancy and tenancy for a specific time or fixed term agreement.

The difference between both the agreement is that a periodic agreement has a start date with no expiry while a fixed term agreement has a definite start and end date.

Benefit of period tenancy is that it gives flexibility to both the parties in giving notice, as there is no expiry date of the agreement.

Benefit of a fixed term agreement is that it gives security to both parties in terms of tenancy and income for a fixed period of time.