How to Decide Between a Lease and a Rental Agreement
While you usually don't have a choice between a lease and rental agreement when agreeing to rent, it's good to be familiar with the pros and cons of both types of contract in case you ever do get to choose.
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Things You'll Need
- Personal Organizers
- Financial Calculator
- Leases
- Rental Agreements
- Notebooks
- Real Estate Attorneys
- Writing Pens
Instructions
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Choose a lease if you're planning on staying in the property for a long period of time. This will give you long-term security and guard against sudden rent increases.
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Choose a month-to-month rental agreement if you know you'll be moving in the near future.
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Month-to-month is also good if there is a good chance that you'll be relocated by your employer, or if you need to rent a place immediately but still want to shop around.
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Tips & Warnings
While a lease lacks the flexibility of a rental agreement (most rental agreements only require 30 days' notice before moving out), it's not impossible to break a lease before the rental period expires.
Prior to signing any binding contract, read it carefully and make sure you understand its terms.
