Signing a rental agreement for an apartment or other property is a key moment for both the tenant and the landlord. However, the agreement often contains two different terms: the date of signing the agreement and the lease start date. What do these terms mean, and do they affect the rights and obligations of both parties? Let’s find out!
Date of Signing the Agreement
This is the day when both parties, the tenant and the landlord, sign the agreement, formally confirming its conclusion. From that moment, the document becomes legally binding, unless otherwise stated.
For the tenant:
- They are obligated to follow the terms of the agreement from the signing date, even though the actual use of the property may start later.
- Obligations such as deposit or blocking fee payments may become due from this date.
For the landlord:
- The landlord is legally bound to provide the property as agreed, starting from the signing date.
- They lose the option of offering the property to other potential tenants.
Lease Start Date
This is the day when the tenant has the right to begin using the property as specified in the agreement. This is usually when the keys are handed over to the tenant, and the property becomes available for use.
For the tenant:
- They can fully utilize the rented property.
- Rent and other operating costs start from this date.
- If the tenant chooses to withdraw before this date, consequences like the loss of the deposit or a contractual penalty may apply.
For the landlord:
- The landlord must ensure the property is ready for use on the lease start date, with all systems working and the property clean and as described.
- Rent begins from this date, and the landlord can expect regular payments.
Example of the Difference Between the Date of Signing and Lease Start Date
- Signing the Agreement:
- Date: January 15, 2024
- Both parties sign the agreement. The tenant pays the deposit and advance.
- Lease Start Date:
- Date: February 1, 2024
- The tenant receives the keys, moves in, and starts paying rent and operating costs.
What Happens If These Dates Are Different?
If the date of signing the agreement is earlier than the lease start date, the agreement is legally binding from the signing date, but the tenant’s rights and obligations related to using the property (such as paying rent) apply only from the lease start date.
For the tenant:
- They must comply with the agreement from the signing date, such as paying the deposit and other fees.
- They do not have the right to use the property earlier without the landlord’s consent.
For the landlord:
- They must reserve the property for the tenant from the signing date, even if the tenant has not yet moved in.
- They are obligated to prepare the property for use starting from the lease start date.
The difference between the signing date and the lease start date may seem small but is crucial for both parties. The signing date establishes legal obligations, while the lease start date marks the actual use of the property. It’s important to clearly define these dates in the agreement to avoid misunderstandings and ensure a smooth rental process.