An Introduction to Rents and Rental Payment
A tenant may avail of real estate property in two ways. First, he/she may rent a property and pay rent to the owner. Second, he/she may purchase a property and pay a monthly installment fee, which is also known as a monthly amortization.
The timing of rental payments depends on the property owner. For example, there are “apartels,” which is a euphemism for “apartment hotels,” or accommodations for rent, which the tenant can rent daily, weekly, or monthly, depending on his/her needs.
There are several types of properties which the tenant can rent. First, there are apartments, which are properties which are usually interconnected with each other and which contains bathroom, cooking and laundry facilities. The apartments may consist of one room, like a studio, or several rooms, and may be found in apartment complexes, which may be several stories high. Second, there are the so-called single-family houses, which are houses which contain several bedrooms, dining room, kitchen, and bathroom facilities, and which may be several stories high. Then there are condominiums, which are similar to apartments, but are usually found in high rise buildings.
When leasing properties, sometimes the lessor requires the lessee to pay several months rent in advance. For example, when the lessee wants to rent a certain property for 1, 2 or 3 years, the lessor may require the lessee to pay 12, 24, or 36 months rent in advance. In this case, the lessee may require the lessor to pay postdated checks, to prevent any default in payment. However, this payment method is usually implemented only for high end properties located in high end neighborhoods. The usual practice is for the lessor to require the lessee to pay one month rent in advance, as well as a one month security deposit, which is non-refundable.
The rent can be paid in two ways. The lessee may pay the rent directly to the lessor in cash or check, or he/she may pay the rent to the lessor via direct deposit to the lessor’s bank account.
The lessee should be careful not to delay the payment of the rent. There is a grace period for the lessee when he/she is not able to pay the rent on time. For example, if the rent is due on the last day of the month, which may be on the 30th, the lessor may pay the rent within 1 week after the 30th. If the lessee pays the rent after the grace period, then that is considered late payment, and he/she may be required to pay surcharges and additional fees, or may be liable for non-payment of rent, as well as eviction from the property.
For fresh graduates who have not yet found jobs, they may avoid paying rent and save money by living with their parents in their parent’s house so that they don’t have to pay rent. But for fresh graduates who have found jobs, it is usual practice for them to leave their parent’s house, and rent their own accommodation.
Rent is an inescapable fact of life for persons who live in properties for lease. But the sad truth is that not all people have the money to pay rent, and end up homeless or live in slums. In this case, it is the government’s duty to provide these people with accommodation.
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