Renting can often be a more suitable arrangement than buying; but when renting, it is important that both parties are aware of what their arrangement entails. Thus, a rental agreement is essential whenever rentals are arranged. A rental agreement is a legally binding agreement that states the terms that apply throughout the rental. In essence, the rental agreement is a contract that defines and seals the deal from a legal perspective. Most agreements will first include names of the parties, the property being rented, and rent payments, and will then delve into specific terms such as restrictions on subleasing or a pet policy. Ideally, this rental agreement should be written, but oral agreements are perfectly legal as well. As a standard, the rental agreement is first drafted by a landlord, who may use a lawyer or free rental agreement to create the document. After terms are negotiated, the two parties consent either orally or by signing the document, legally initiating the lease.