Leasing has becoming one of the most important factors for all landlords due to the pressures involved in renting of the apartments or houses. The advantage of leasing over renting is that the land lord is relieved off the pressures of having his or her house or apartment vacant as with leasing you are given the whole rental amount for a certain period of time. Rentals also have problems as the landlord ends up having feuds with his or her tenants now and then due to factors such rent arrears and many other discomforts. Leasing can be described as a contract that one can have with the landlord where he or she pays a certain agreed amount of money to the landlord for certain period of time that he or she is in the occupation of the house or apartment/property. Under leasing on the other hand is the contract that lesser signs with any interested persons or organization to be in the occupation of the house or apartment that he or she has leased from the landlord.
Under leasing a house or apartment has it's an advantage as well as disadvantages. The advantages include:
- You get to live in a decent house or apartment for a fee less than what you have spent on buying the house. Under leasing is suitable for someone who may lack the whole capital to purchase the house.
- Under leasing can be beneficial if the rent cost fluctuate up. When you sign the contract, you pay the agreed amount for a certain period and that amount is not altered regardless of changes in the real estate market.
- In some cases it is the most appropriate case of acquiring a nice place. E.g. if you wished to have a small office on the biggest mall in the city where you do need to buy the whole building.
- Under leasing is also appropriate for businesses that want to operate for short term (maybe 10 years) as you are not forced to renew the contract after its end.
Under leasing is also important to the leaser as one can be able to move on to another place if he wishes without breaching the contract he signed with his or her landlord. It's also advantageous as he can charge the sub-lease a bigger amount than the one he pays to the landlord or landlady.
The disadvantage of under-leasing is that:
- It may difficult to terminate the contract because of the high expenses involved regardless of the reasons you may have to move on.
- If the business is popular or successful, the lesser may ask for more money when you come back to renew the contract.
It's important that you consider all these factors before leasing or sub-leasing either your house or business premises.