- If in a lease contract, termination is desired before its conclusion, there might be a real estate penalty.
- The guarantee policy will provide greater certainty that what was agreed upon initially will be carried out, and it will protect you in case of any breaches.
At Coldwell Banker, we have discussed various real estate terms that are important to know, as they are sometimes uncommon in everyday life. Therefore, today in our Real Estate ABC, we will introduce you to the topic of leasing, its definition, implications, and why it’s necessary to understand the basics when signing the contract.
Leasing can be understood as the agreement or contract between a lessor and lessee, where the lessor provides a service of a movable or immovable asset and the lessee pays for receiving that service, all stipulated under a contract based on laws, noting that it cannot exceed 10 years for residential properties and 20 years for commercial or industrial premises.
Currently, it is more common for individuals to lease real estate or movable property, as it provides an easier and more accessible way to have a place to live that fits your budget, with the possibility of sharing costs with one or more individuals, such as roommates.
Now, having explained the term, it is important to understand its components and why it is necessary for everything to be under contract.
- Ensure you have a clear and transparent contract: It is essential to have a document specifying the number of occupants, whether modifications can be made, whether pets are allowed, and if applicable, whether certain areas of the property can be subleased, to protect both parties and avoid future breaches of agreement.
- Get informed about your lessee: If you are the one leasing, it is important to have information about the people you are entering into an agreement with. Knowing their credit profile, income, and having references will provide you with greater certainty and knowledge when signing.
- Avoid penalties and breaches: It is crucial for those involved in a lease to understand that the contract can be terminated if the lessee fails to fulfill their obligations. Similarly, if the lessor wishes to terminate the contract early, they must consider that they could be subject to a real estate penalty.
- Protect yourself with a tenant’s policy: This will serve as a guarantee, allowing you to investigate and confirm the reliability of the next person who will inhabit your property, ensuring that what was agreed upon initially is carried out and protecting you from any breaches.
Now you have more tools to consider when contemplating a lease, understanding the importance of complying with the terms and conditions agreed upon in a timely manner. Failure to do so could have consequences such as negative credit history or poor references, complicating future lease agreements. At Coldwell Banker Mexico, we have advisors who can assist you if you have any questions.
Fuentes de consulta:
https://www.lamudi.com.mx/journal/ley-de-arrendamiento-mexico
https://www.lamudi.com.mx/journal/10-terminos-del-contrato-de-arrendamiento
https://rentas.com/blog/la-importancia-del-proceso-de-arrendamiento.html
