08 Aug Difference of Lease and Agreement
When it comes to renting a property, two terms that are often used interchangeably are lease and agreement. However, there are some key differences between these two concepts that every tenant and landlord should understand.
A lease, also known as a rental agreement, is a legally binding contract between a landlord and tenant that outlines the terms of the rental agreement. This document specifies the duration of the rental period, the rent amount, payment due dates, security deposit and any other relevant terms and conditions. In most cases, leases are signed for a fixed period of time, such as one year, with the option to renew at the end of the lease term.
On the other hand, a rental agreement is a more flexible document that allows both parties to agree on the terms of the lease on a month-to-month basis. This means that either the landlord or the tenant can end the agreement with a notice period of 30 days or more.
The main difference between lease and agreement lies in their duration and flexibility. A lease is a fixed-term contract that provides tenants with a sense of stability and security, whereas a rental agreement offers more flexibility and freedom to both parties.
Leases are often preferred by landlords as they provide a guaranteed rental income for a fixed period of time, while rental agreements offer flexibility in the event that a tenant needs to move out sooner than anticipated.
Another key difference between lease and agreement is how they handle rent increases. With a lease, the rent amount is fixed for the entire duration of the contract, while rental agreements allow for rent increases with proper notice.
In conclusion, both lease and agreement serve the same purpose of establishing a legally binding agreement between a landlord and tenant. However, their duration and flexibility vary greatly. It is important for both parties to carefully consider their specific needs and circumstances when deciding which option to choose.