Housing...Inside and Out

September 7, 1998
Types of Rental Agreements - Part 2

When you have made a housing selection you will be presented with either a lease or a written rental agreement. In some cases your landlord may make an oral agreement with you concerning occupancy. Each arrangement differs.

Lease - A lease is a written and dated legal document that records the contract between the owner and the renter. The lease, which is often on a preprinted form, sets out the length of time you will live in the unit, the amount of rent, and the various conditions binding on both parties. The renter agrees to rent the premises described in the lease for the amount of rent stated for a certain period of time. The renter also agrees to abide by the conditions written in the lease for that period. In exchange for the prompt payment of rent and the performance of the conditions, the renter is given possession of the dwelling. If you end the lease before the end of the lease term when the landlord has performed properly, you may be legally responsible for the remainder of the lease term if the unit is not re-rented.

Written Agreement - A written agreement is a somewhat shorter, more informal document than a lease. It often permits month-to-month tenancy and allows the landlord to write in his own preferences. The tenant may also add or subtract provisions to a lease. Both parties should initial all changes. It also permits landlords to change rent prices at their own discretion. Keep in mind that certain localities have rent controls. Check with local authorities to determine if rent controls affect your area.

Oral Agreement - An oral agreement may be discussed by the renter and the landlord. After discussion of terms they arrive at a rental arrangement. Such an agreement offers little protection to the renter should the landlord fail to live up to the agreed commitments. It is advisable to have a written agreement.

  • Most often a lease is the best of the three rental arrangements because it prevents the possibilities for misunderstandings concerning occupancy. A lease is written in legal language, and if you don't understand every clause and paragraph, ask for help from a friend or relative.


Written by Dr. Francis Graham (Retired)

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