Chapter 5, Problem 17AA

To determine

To explain: Two things that are considered during the rental lease.

Explanation of Solution

The two things that should be looked at in the rental lease are the time duration of the lease and the amount of security deposit with returning conditions. Generally, the lease is made for the duration of 2 to 3 years and the lease for shorter months such as 6 months or 9 months will burden extra cost to the tenant.

Security deposit is the other thing that must be checked in the rental lease. This, the security deposit should be equal to the monthly rent and in the case when the tenant fails to pay the rent then the owner compensates the rent from the security deposits. Moreover, the lease should also contain the rules regarding the refund of security money at the time of vacating the rented house.