Chances are, if you haven’t rented before and you are not a real estate agent, the terms of a lease agreement can be a little confusing. Here are the top lease terms you need to know:
Lessor: The landlord the property
Lessee: The tenant of the property
Security Deposit: Similar to earnest money, this sum is payed by the Lessee before they move into the property. This sum is refundable pending the house is in good condition and the tenant is current on their rent payments. This money must be kept in a separate escrow account throughout the entire term of the lease.
Notice to Vacate: This is a notice given by the tenant stating their intent to vacate the property. Alabama Rental Managers requires a 30 day notice if the tenant is not renewing at the end of their lease agreement.
Sublease: A lease between a tenant and a sub-tenant which requires the sub-tenant to fulfill the lease terms. Alabama Rental Managers does not allow subleasing.
Default: Failure to fulfill a specific lease obligation including paying rent by the time it is owed each month.
Early Termination: This is when the tenant of a property wants to break their lease agreement before the end lease date. There are often fees and penalties involved.
Prorate: When the sum of money owed is divided proportionately. If you move in during the middle of the month, Alabama Rental Managers will prorate the amount of rent due. You will only pay for the days you actually have possession of the home.