A condominium lease agreement oversees the renting of a condominium. It does not really differ significantly from your ordinary lease. That is because it similarly covers the duration of a lease, rental costs, and the terms of usage of the stated piece of property, much like any other lease agreement would do.
A Condominium (Condo) Lease Agreement is an agreement made between the owner of a residential unit located in a condominium association and a tenant willing to rent out the residential unit.
The lease agreement defines the terms of renting the Condo. The tenant(s) leasing the residential unit is usually required to uphold the rules and regulations of the association and are granted the rights-upon signing the agreement- to use any available facilities, common area, as well as other privileges of the community (unless stated otherwise in the lease agreement). The condominium owner and the person leasing the residential unit are afforded the same rights as those of a landlord and a tenant as though the property were any other type of residential unit, and once signed, the lease agreement becomes legally binding.
Introduction to Condominium
A condominium is a small apartment that is treated as a distinct unit and is hence sellable in its own right. It is largely abundant in larger cities of North America where space is costly and out of the reach of the many who may badly be in need of it.
These condominiums are mainly located in residential districts. They are subsequently used almost exclusively for residential purposes. Nonetheless, they may be repurposed, subject to the prevailing bylaws, to cater to other needs like commercial, office, or warehouse.
Understanding Condominium Lease Agreement
Even though they are primarily leased for residential needs and uses, the condominiums may under special circumstances, be leased out for commercial uses. Private practitioners like doctors, lawyers, computer programmers, and photographers may lease these condominiums and use them as their base of operations.
In such a case, the language, as do the terms of the lease, more or less apply as in that of a residential lease agreement. This notwithstanding, the commercial lease may restrict the use of the condominium to certain purposes and tasks. It is hence, a good thing to do to pay keen attention to the “use” provision of the agreement.
NOTE THAT: Some jurisdictions may require a special permit to convert the condominium to commercial ends.
If such a provision exists, we opine that you make every effort to meet it as you do not want to ruffle feathers unnecessarily with the powers that be.
Following are a few other things to know about such type of lease agreement
Other alternative names can be used in place of a “condominium lease agreement.” They include:
- Condo Lease
- Condo Rental Form
- Condominium Lease Form
Terms of a condo lease
The condominium contains more or less similar language as that of a standard lease agreement. However, it does have a clause that leaves it subject to the various bylaws that govern the lease of such facilities. It is hence important that you pay special attention to this specific provision.
The following are some of the terms that the agreement stipulates:
- Day-to-day use of the property
- Where parking is allowed in the facility
- Kinds of pets permissible
- The types of holiday décor applicable
- Any limits on the use of the common areas
- Guests, parties, events, and functions
- Utilities and other allied services
- Periodic maintenance of the facilities
- Improvements and assessments of the facilities concerned
- Property taxes and other allied costs
The lease highlights the terms of renting the condominium, such as the rental term, the frequency of rent payment, the security deposit required before moving in, and who will be responsible for repairs and maintenance of the Condo.
Although the condo lease agreement is in more ways similar to a residential lease agreement, it is unique as it outlines the landlord’s obligations to pay the Condo fees and ensuring that the tenant abides by the rules established by the Condo’s Home Owner’s Association. Simply put, the Condo lease agreement is used to clarify the terms of leasing the Condo. It also helps prevent any misunderstandings and lays out a foundation for a healthy landlord-tenant relationship.
Leasing a Condominium
Various key items must be considered before leasing a Condo, including:
Know the State’s rental laws
After deciding to turn the Combo into a rental unit, the owner automatically becomes a landlord and must then familiarize themselves with their state’s landlord-tenant laws. For instance, in Boston-Massachusetts, rental owners must register their property with the city each year. Failing to do so will result in litigations and major fees. The landlord must equip themselves before leasing the Condo with information such as the maximum security deposit they can charge and maximum rental application fees to be able to steer clear of any legal troubles and successfully rent out their Condo.
Check with the condominium associations
Besides being responsible for the Condo’s daily operations, the condominium association lays out the rules that the condo owners must follow, including whether the owner of the Condo is allowed to lease the Condo or not. Additionally, some condo associations even require an interview with the lessee and vet them before they can be approved to lease the property. The lessee may have to be registered with the management office or the association to be given the security pass or fingerprint access to common areas.
Select potential tenants
The fair Housing Act protects tenants from landlord discrimination against race, color, natural origin, religion, handicap, or familial status- as a landlord; it is important to take note of this. The best way to avoid discrimination is to set up a screening process that is the same for every potential tenant. When screening potential tenants, it is recommended that they fill out a rental Application Form to help to aid in performing credit, criminal, and background checks.
Fill the lease form
When filling out a condominium lease agreement on the web, one should follow the following steps to complete it:
- Step 1: Enter the contact details as well as official identification
- Step 2: Use available tools to navigate through the document
- Step 3: Double-check to make sure all details are entered correctly
- Step 4: e-Sign the form
- Step 5: After making sure that all the information is captured correctly, click on done
- Step 6: Print, save or share the document
Sign the lease agreement
Whether using the online version of the print copy, once the tenant has been approved to lease the Condo, for the agreement to be considered valid, it must be signed by all the parties involved.
Following are the free downloadable templates that can be customized as per need:
Frequently Asked Questions
No. Only lease extension agreements duly signed by both the landlord and tenant of an existing lease are binding.
A lease renewal agreement is, by definition, a new lease agreement, whereas a lease extension is simply a continuation of the original lease agreement.