When drawing up a lease, three factors play a key role:
The length of the lease term, together with the security provided by the tenancy;
The degree of freedom and control given to the tenant; and
The flexibility and financial implications of this combination of length of the lease, security, freedom and control.
Leases that are strongly regulated and protective of the tenant can be unacceptable to land owners, who may feel that their power and flexibility are being too restricted. At the same time, a lease that is highly informal or under-regulated is not in the best interest of tenants as it may deny them a reasonable level of security. The key is to find a balance that is suitable to both land owners and tenants.
