When it comes to renting a property, most landlords and tenants rely on a written rental agreement that outlines the terms and conditions of the tenancy. However, sometimes a verbal rental agreement is made between the parties involved. In this article, we will dive into what a verbal rental agreement is, what makes it different from a written agreement, and the pros and cons of such an arrangement.

What is a verbal rental agreement?

A verbal rental agreement, as the name suggests, is an agreement made between a landlord and a tenant that is not in writing but instead spoken. This agreement is usually made face-to-face or over the phone and typically includes the basic terms of a rental agreement, such as the rental period, the amount of rent, and the rules of the property.

What makes a verbal rental agreement different from a written agreement?

The most obvious difference between a verbal and written rental agreement is the lack of a physical document. A written rental agreement is a legally binding document that outlines the terms and conditions of the tenancy and is signed by both the landlord and the tenant. On the other hand, a verbal rental agreement is not a formal agreement, and it is difficult to prove the terms and conditions of the agreement without any written evidence.

Pros and cons of a verbal rental agreement

Pros:

One of the significant advantages of a verbal rental agreement is that it is relatively easy and fast to make. This is especially useful in situations where a tenant needs to rent a property quickly or when the landlord needs to rent out their property immediately.

Another advantage of a verbal rental agreement is the flexibility it offers. The terms of the tenancy are not set in stone, and the landlord and tenant can make changes to the agreement quickly and informally.

Cons:

One of the significant drawbacks of a verbal rental agreement is the difficulty in proving the terms and conditions of the agreement. In the event of a dispute, it can be challenging to prove what was agreed upon, and both parties may have very different recollections of the agreement.

Another disadvantage of a verbal rental agreement is that it may not be legally binding in certain situations. For example, some states require that rental agreements be in writing, and a verbal agreement may not be enforceable under the state`s laws.

Conclusion

Overall, a verbal rental agreement can be a convenient and flexible way to establish a rental arrangement. However, it is important to note that it may not always be legally binding, and it can be difficult to prove the terms and conditions of the agreement without written evidence. Therefore, it is always a good idea to have a written rental agreement in place to protect both the landlord and tenant`s interests.