What is a lease agreement in property management?

A lease agreement in property management is fundamentally a legal contract that outlines the terms under which one party (the lessee or tenant) is allowed to use a property that is owned by another party (the lessor or landlord). This document is essential as it clearly specifies the rights and responsibilities of both parties, including the duration of the lease, rental amounts, payment schedules, property maintenance responsibilities, and conditions for terminating the agreement.

By legally binding the parties to the terms set within the lease, it provides a framework for resolving disputes and ensures that both parties understand their obligations. Having a written lease agreement helps protect the interests of both the landlord and tenant and is crucial for enforcing the terms of tenancy.

While verbal arrangements can occur, they lack the legal protections and clarity that a formal lease provides. Other options such as needing a document for property sales or a maintenance schedule do not directly relate to the core functions and purpose of a lease agreement within property management.