What is the purpose of a tenant's lease agreement?

The purpose of a tenant's lease agreement is to establish the terms of rental between the landlord and tenant. This legal document delineates the rights and duties of both parties involved in the rental relationship, including but not limited to the duration of the lease, rental payment amounts, and any rules or restrictions pertaining to the property.

By clearly defining these terms, the lease agreement serves to protect both the landlord's and tenant's interests, ensuring that both parties understand their obligations. For instance, the lease might specify maintenance responsibilities, security deposit requirements, and procedures for terminating the agreement, all of which are vital for a smooth landlord-tenant relationship. The comprehensive nature of the lease means both parties have a clear framework within which they must operate, thereby reducing potential disputes and misunderstandings.

Other options, while relevant in different contexts, do not pertain specifically to the purpose of a tenant's lease agreement. The responsibilities of property management are typically outlined in a separate agreement or document, and investment strategies or dividend yields are concepts more related to REIT operations rather than the landlord-tenant relationship defined in a lease.