Whether you handle properties and rents full-time or just have a single property as a source of income, you’re expected to know it all as a landowner. Whatever the case may be, there is one point of difficulty for many: the difference between a lease and a rental agreement?
Often the terms, lease agreement, and rental agreement are used interchangeably to mean the same thing. However, the phrase might apply to two different sorts of contracts. Both leases and rental agreements are legally enforceable transactions, although they serve different purposes.
What is a Lease Agreement?
Many landlords want renters to sign lease agreements before moving into a rental home. A lease is a compliance between a tenant and a landlord that grants the renter the right to remain in a property for a set length of time, usually six or twelve months. The parties to the lease are articled by a contract between the landlord and the renter.
What is a Rental Agreement?
Lease agreements and rental agreements are extremely similar. The length of the contract is the most significant distinction between a lease and a rental agreement.
A rental agreement, unlike a long-term lease, allows tenancy for a shorter period of time—usually 30 days.
Most rental agreements are “month-to-month,” and they automatically renew at the end of each term period, unless the renter or landlord specifies otherwise. A rental agreement allows both the landlord and the tenant to amend the terms of the agreement at the conclusion of each month.
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