What is the primary purpose of a lease in property management?

The primary purpose of a lease in property management is to outline the terms and conditions under which a tenant can occupy a property. A lease serves as a legally binding agreement between the landlord and tenant, detailing important aspects such as the duration of the tenancy, rental amount, payment schedule, and responsibilities for maintenance and repairs. By clearly defining these terms, the lease protects the rights of both parties and provides a framework for resolving disputes that may arise during the tenancy.

While transferring ownership of the property is relevant to real estate transactions, it is not the focus of a lease, which does not convey ownership rights. Similarly, establishing market value is more aligned with appraisals or sales agreements rather than a lease, as the latter is primarily concerned with occupancy and use rather than property valuation. Lastly, enabling property taxes to be assessed is an administrative function related to property ownership and is not a primary function of a lease, which revolves around the terms of occupancy rather than tax implications.