Verbal vs. Written Lease and Rental Agreements

Do you know the pros and cons of both verbal and written lease and rental agreements? They all have their strengths and weaknesses depending on the situation that they're used for.

When renting an apartment unit, a landlord can make either a verbal or written rental contract with the tenant. Lets take a look at the main differences between these two types of rental contracts.

Verbal Rental Contracts

The quickest and easiest way to make a rental contract with a tenant when renting a unit is verbally. From this perspective, a verbal contract has the benefit of keeping the landlord-tenant relationship as simple as possible. But, the simplicity of this type of contract may come at a price later on for either the landlord or tenant.

The real problem with a verbal rental contract is that the terms of the contract are hard to prove, if necessary, in court. In this situation, and without any written evidence to the contrary, a tenant could easily distort the terms of a verbal rental contract that were established by the landlord. The classic "he-said, she-said" face-off begins between landlord and tenant with the outcome left for the judge to decide.

As can be imagined, the "Achilles heel" of verbal rental contracts is that they rely on the memory and honesty of each party involved.

Written Rental Contracts

The other alternative to a verbal contract is the written contract. Probably the best example of a written contract is the US Constitution.

Written rental contracts, when properly made, outline clearly in black and white the responsibilities and duties of both landlord and tenant. This is a great benefit because it eliminates having to prove any of its contract terms as is the case with verbal rental contracts.

Written lease and rental agreements also make it more difficult for a tenant to either "forget" or say they were "unaware" of certain provisions in the rental contract. In the end, this makes a tenant more accountable to their landlord.

For some great in-depth information on lease and rental agreements, visit The Landlord's Library book collection. It'll provide you with all the information you need to make your landlord business as rewarding and profitable as can be.

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