What is the Difference Between a Rental Agreement & a Lease Agreement?

What's the difference between a lease and a rental agreement?

While the terms rental agreement and lease agreement are sometimes used interchangeably, they cam actually refer to two types of rental contracts with very different terms.

Renewal

Rental agreements automatically renew at the end of their term unless either tenant or landlord has notified the other in advance that she does not intend to renew the agreement. Leases do not automatically renew at the end of their term, though they may contain a clause requiring either party to give notice if they don't intend to sign a new lease.

Length

While both leases and rental agreements can be for any length of time, rental agreements are usually for much shorter time periods. They are often known as month-to-month or week-to-week rentals.

Changes

The terms of a lease that is already in effect can only be changed by mutual agreement between tenant and landlord. A landlord can change the terms of a rental agreement at any time by giving the tenant advance notice.

Termination of Tenancy

State laws usually require a landlord to give advance notice to a tenant when the landlord won't renew the rental agreement.

Eviction

When a rental agreement ends, the landlord may evict a tenant for no other cause than the tenant "holding over" past the end of rental term. A landlord must prove grounds (such as non-payment of rent) to evict a tenant with a lease.

References

• Nolo: Leases and Rental Agreements FAQ
• Nolo: Whether to Use a Lease or a Rental Agreement
• Nolo: Terminating a Lease or Rental Agreement FAQ