Difference Between Home Lease or Rental
Many people use the terms "lease" and "rental" interchangeably when looking for housing. There are several subtle differences between the two, and prospective tenants need to be informed about the distinction.
Other People Are Reading
-
Time
-
Lease agreements are for a specific duration of time, often six months or a year. Modifications to the agreement cannot be made until the end of the lease term unless agreed upon by all parties involved. Rental contracts are typically only month-to-month in most states.
Renewal
-
Rental agreements are automatically renewed every 30 days unless discussed by the tenant and owners. Lease agreements don't automatically renew, and tenants who stay on the property after the end of the lease are subject to rental terms.
-
Stability
-
Leasing terms offer owners stability and guaranteed housing over longer periods of time. This is especially beneficial in tight rental markets. Terms of the lease, such as payment amount and conduct codes, cannot be changed until the lease expires.
Flexibility
-
Rental agreements are more flexible because the terms of the agreement can be modified more often. Student housing is a great market for owners to offer rental options because of the quick turnaround in tenants.
Documentation
-
Written documentation is essential for either leasing or renting. It will help avoid conflict between tenants and landlords. Most states don't honor oral agreements after a year into a tenant's stay.
-
References
- Photo Credit apartment lease sign image by Aaron Kohr from Fotolia.com
