Chapter 5, Problem 6AA

To determine

To analyze the option best suited for the blank.

Explanation of Solution

A lease is an agreement specifying the conditions on which one party agrees to rent land belonging to another party. It promises the lessee, also known as the tenant, the use of the agreed sum the lessor, the owner of the property or the landlord, monthly payments in return for a defined duration.

The lease helps to set standards for the tenants and addresses a number of concerns that might occur during the leasing period. Some landlords may find that they are saving time by not checking a lease with tenants until they move in. Later on, the tenants need to contact the landlord because they have concerns.

Leases protect both landlords and tenants from many potential problems that might arise.