A Lease Term refers to the period for which a lease agreement is valid between the landlord and tenant. It is a specific duration of time during which the tenant has the legal right to occupy the property under the conditions stipulated in the lease agreement. Lease terms can vary widely, and they are often defined in months or years. Common lease terms might include 12 months, 24 months, or even longer, depending on the property and the needs of both parties involved.
The lease term is a fundamental aspect of a lease agreement and typically includes provisions that define the responsibilities of both parties, such as rent amount, payment schedule, maintenance obligations, and what happens at the end of the term, such as renewal options or move-out requirements. The lease term can influence the stability and predictability of rental income, which, in turn, can affect the property’s overall investment value and return on investment. Long-term leases may provide more stability, while short-term leases might offer more flexibility but potentially greater vacancy risks.