What is a Rental Agreement?
What is a rental agreement?
A rental agreement is a contract between the owner of an asset (such as a car or property) and an entity that wishes to use that asset. The rental agreement will therefore assign temporary possession and authorization to use the asset. In that rental agreement, it will stipulate the criteria under which the asset is rented out. As a result, it will often include:
- the amount of time the rental will go on (for example, a month to month rental agreement),
- how much the renter should pay the owner for compensation,
- and any other conditions that the renter must adhere to, to continue to rent the asset for the rental term.
How does a rental agreement work?
Any good rental agreement template should be clear in how the relationship between the owner of the asset and the renter of the asset should work. Many rentals, particularly regarding homes, will be subject to rules and regulations surrounding renting out properties. This is so landlords cannot take advantage of tenants and provide a safe and secure home.
The same can be said of any car hire companies that must provide a safe vehicle to use and will not put the renter in any danger. However, rental agreements for car hire companies will also include conditions that the car must be returned in good working order. If not, their contract will also delineate what happens under such circumstances - i.e., a form of payment that pays for any necessary repairs.
Advantages of a rental agreement
One key advantage of rental agreements is that they protect the interests of both parties. Given what can sometimes be at stake - the asset for the owner and being tied into a contract that requires payment for the renter - it is essential that both sides can make a legal claim, should the agreement be breached somehow. And, of course, the fact that a legal claim can be made at all makes it far more likely for both sides to adhere to the contract. It there minimizes the number of breaches that do occur.
Contractbook and rental agreement
If you are looking to enter into a rental agreement, either as an owner or a renter, Contractbook has a template that you can use immediately. Our rental agreement templates can be edited and amended to suit your needs, but there are also many different rental agreements to choose from too. For example, renting office space, a commercial lease agreement, or a tenancy agreement can all be found within our library. Using our contracts means that not only do you speed up finalizing your rental agreement, you also can be confident in the contract’s legal standing, given that lawyers have created all our contract templates.