Alternatives to Residential Lease
A Residential Lease is also referred to as a:
A Residential Lease may be a legally binding agreement negotiated between landlord and tenant, when the potential tenant is considering renting residential property from a landlord or via an agency. The Lease includes address of the property, tenant and landlord contact details, an inventory of fixtures and fittings, terms of the lease.
The Lease can cover a wide range of issues including:
Both the tenant and the landlord should keep a copy of the signed agreement for their records.
This Residential Lease Contract is applicable when renting any residential property, including:
Anyone becoming involved in a contract related to rental of residential space needs a valid contract to outline the rights and responsibilities of both parties, i.e. the landlord or a tenant.
People who may find this information useful include:
Some residential rental contracts include terms offering a rent-to-buy or rent-to-own arrangement, whereby the tenant has an option to eventually buy the property they lease. This option to purchase offers some tenants the option to buy a home within a specified period of time and / or for a certain price.
This form of residential lease agreement is used when a landlord wants to sell a home, but, the prospective tenant does not have sufficient deposit to afford a mortgage, or they have a negative credit rating, so cannot secure mortgage lending provision.
Right to buy tenant(s) can choose to pay a non-refundable fee to their landlord in return for the right to purchase their home at a pre-determined, fixed price.
If such a tenant decides not to purchase their right-to-own property, the landlord keeps the 'option fee'; this is tantamount to a non-refundable deposit.
What if a Residential Lease Agreement differs from the law?
A Residential lease agreement may be a legally binding tenancy agreement a Landlord and tenant of a residential space. It outlines the rights and responsibilities of both the Landlord and Tenant during the tenancy and cannot take away legal tenancy rights.
What protections does a residential lease agreement offer?
There are laws which protect both tenants and landlords; the tenancy agreement sits within this framework, so where the arrangement does not comply with the law, the law takes precedent. The terms and conditions of any specific lease make clear the rights and responsibilities of each party, so that where breaches occur, either side may cite terms and conditions which refer to that given situation. Where there are gaps in an agreement, the law must be referred to.
What happens when the landlord changes terms of a periodic tenancy?
The landlord cannot justifiably change the terms of a residential lease during any specified lease period. If the landlord wants to change the terms for a forthcoming period, the tenant may either accept these changes and continue to live at the premises, but on the new terms, or opt to give statutory notice to terminate the lease.
Introduction
Here is our guide to determining whether or not you are ready to buy a home. We cover the pros and cons of home ownership, how to assess what you can afford, and when is the right time to take the plunge of home ownership. We hope this guide helps you figure out whether or not now is the right time for you to become a homeowner.
Getting Started: questions to ask yourself
Determining whether or not you are ready to buy a home begins with a self-assessment of your plans and finances as well as the temperature of the housing market in your area. Start by answering the following:
Do the math: with these questions answered you should calculate the following:
It is likely that owning will cost more than renting, but remember, you will never see rent money again. Monthly mortgage payments, on the other hand, are contributions to an investment that likely represents your most valuable asset.
Therefore, calculate the price to rent ratio.
Price to rent ratio = home price/annual rent of a comparable rental unit
As a general rule, if the ratio is less than 20% it makes more sense to buy.
Even if you decide that the cost of ownership is too high at this point, tabulating the specific costs will give you a better idea of when the timing will be right for you. By working this out you will know when buying makes more sense than renting (called the breakeven horizon).
Other Considerations
There is much more to consider when determining whether or not you should buy a home. The most significant of those considerations are:
Pros and Cons of Homeownership
Pros
Cons
Homeownership Expenses
Pros and Cons of Renting
Pros
Cons
When is it the right time to buy?
With an uncertain housing market, you should never buy impulsively or if doing so places excessive strain on your personal finances, savings, or retirement contributions.
Instead, plan ahead. Calculate exactly how much buying a home will cost--down payment, mortgage, taxes, insurance, moving costs, furnishing costs, etc.--and make sure you are comfortable with those dollar amounts.
Here are some signs you are ready to buy:
Non-financial indicators:
Preparing to Buy
Renting vs Owning for Millennials
With skyrocketing housing prices in places like San Francisco, New York and Los Angeles, many millennials cannot afford a 20% down payment, not to mention the maintenance costs associated with owning a home. Renting, therefore, affords younger people the ability to have more job and geographic flexibility in an economy where it is difficult to acquire and maintain high-paying jobs.
Renting vs Owning in Retirement
According to Trulia’s 2016 Rent vs Buy report, (https://www.trulia.com/blog/trends/rentvsbuy_retirees_spring16/), buying a retirement home is roughly 40% less expensive than renting a retirement residence in all major metropolitan areas.
Conclusion
Homeownership is something to which most people aspire. Buying a home is likely the biggest purchase you will ever make, but it will also be your most valuable asset. However, becoming a homeowner is a big deal and should not be done without careful consideration and calculation. For some, buying a home may not, at present, be the best option, regardless of their desire to do so. We hope this guide offers you the tools to determine whether or not the time is right for you to buy a home and if so, how to proceed in an informed manner.
A Residential Lease may be a legally binding agreement negotiated between landlord and the potential tenant. The lease includes address of the property, term of lease, tenant and landlord contact details, an inventory of fixtures and fittings and agreed terms of the lease.
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