What is the role of lease contracts in the real estate market?

The role of lease contracts in the real estate market is primarily to formally identify a property's rent. A lease contract establishes the terms under which a property is rented, including the amount of rent due, the duration of the lease, and the responsibilities of both the landlord and the tenant. This written agreement ensures that both parties have a clear understanding of their obligations and the financial arrangement involved, thus providing protection and certainty in the rental relationship.

Identifying property ownership is a function of deeds and title documents rather than leases, while determining selling price is not relevant to leases, as they pertain to renting rather than selling property. Additionally, while leases may include clauses that regulate tenant behavior (such as rules regarding noise or modifications), the primary purpose remains focused on defining the rent and terms of occupancy. Therefore, the emphasis of a lease contract is clearly on outlining the financial aspects of renting a property.