Lease Rent Meaning and Differences


What is the difference between rent agreement and lease agreement?
You might have asked yourself, what is the difference between lease or rent, which is better? When you are considering to rent out a property, you will need to decide if you wish to offer your tenant(s) a lease or a rental agreement. 

However, it looks that these terms are often used interchangeably, their meanings differ. Before you rent out your property, be sure to take into account the differences between a lease and a rental agreement so you can make the best choice for your situation. Here are the most important differences everyone who is asking himself or herself this question should understand:

Rental Agreements
A rental agreement differs from a lease agreement because it is not a long-term contract and usually occurs on a monthly basis. Such month-to-month lease agreement expires and then renews each month upon agreement of the parties involved. So they often have no long-term requirements. At the end of each thirty-day period, both you and your tenant are free to change the rental agreement (subject to local rental laws).

Rental agreements, therefore, have more leeway. However, either the tenant or the landlord can alter the terms of the agreement at the end of the period. Think about changes like raising the rent asking the tenant to vacate the property or modifying the initial terms agreed. However often both landlord and tenant need to mutually agree and give a period of notice before any modifications can be made. 

Another advantage is that rental agreements are useful if you’re having a problem attracting new tenants, or if your property is in an area that caters to students or professionals who move around often. A rental agreement typically renews automatically after each rental period has finished. The landlord has the option to raise the rent or request that the tenant quit the premises without violating the rental agreement. A landlord must give a proper notice to quit, however, prior to requesting the tenant leaves the property.

Lease agreements

In comparison to rental agreements, a lease has a set term, often for long periods of time, usually a period of 12 months, during which the tenant agrees to rent the property. A lease agreement is a contract between a landlord and a tenant that covers the renting of property, usually or more. The lease agreement is very specific in detailing the responsibilities of both parties during the lease and it includes all the necessary terms to provide protection to both parties.

During the duration of the lease, both must adhere to the lease agreement. For example, tenants agree to make monthly rent payments and follow the other obligations in the lease.
The length of the lease and the amount of monthly rent are documented and cannot be changed that easily. This ensures that the landlord cannot at random just raise the rent fee and the tenant cannot just leave the property whenever he or she wants to, without any consequence.

The lease agreement is effective for the specific time mutually agreed and is then considered ended. If the tenants wish to remain in the property, both parties must enter into a new agreement. 

So, therefore, neither party is able to change any terms until the lease period expires. Unless both parties mutually agree to the change the terms. A tenant can’t vacate the property without breaking its lease, in which case they can be held liable for the rest of the rent due under the lease, or can be required to find someone else to take over the lease.
After the lease agreement is finished, the landlord is not obligated to renew the lease again based on the same terms. He or she is free to change terms and rental amounts if desired. For this reason, some tenants prefer to sign a longer-term lease if the monthly rent is very reasonable and in an area where rents are likely to increase during the term of the lease.

Leases are useful for those landlords who want to “lock-in” a tenant for a specific period of time. If you have a mortgage payment to meet, for instance, knowing you’ll have a tenant for the next year can help you budget your expenses. Most tenants are familiar with long-term leases and will not have a problem committing.

Check out the following example agreement templates:

template preview imageRent Agreement Template  Extension for Lease

Rent Agreement Template Extension for Lease

Download this Extension Lease Agreement template and after downloading you can change and customize every detail and appearance and finish it in minutes.

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template preview imageChinese English Rental Agreement

Chinese English Rental Agreement

Are you looking for a Chinese and English Rental Agreement to rent a house in China? Download Template Rental Agreement English and Chinese language now!

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template preview imageBoat Rental Agreement Template

Boat Rental Agreement Template

What to write in a boat rental agreement? are you about to rent out your boat, or looking for an example of an agreement template for boat rental? Make sure to get this example template right away and commence working on it.

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template preview imageLease Agreement For Furnished House

Lease Agreement For Furnished House

How to make a lease agreement for a furnished house? Download this example Lease Agreement For Furnished House!

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template preview imageAutomobile Rental Agreement

Automobile Rental Agreement

Download this Automobile Rental template and after downloading you will be able to change and customize every detail and appearance and finish it in minutes.

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Rental Agreement (Generic) Template

Have you been searching for a rental agreement generic template that you can use for your business? Our generic rental agreement template is easy to download and customize.

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template preview imageRoomorama Guest Short term Rent Agreement

Roomorama Guest Short term Rent Agreement

Download this Short term rental agreement if you have your home on Roomorama in order to protect your property and to have both parties on same page.

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template preview imageAIRBNB Guest Short term Rental Agreement

AIRBNB Guest Short term Rental Agreement

How to write a short term rental agreement? Are you looking for an additional Short Stay Rental Agreement to rent out your home or room on AIRBNB? Download this Short stay Rental Agreement including an Inventory checklist now!

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template preview imageSimple Shortterm Rental Agreement

Simple Shortterm Rental Agreement

Download this Simple Shortterm Rental Agreement if you are providing property for shortterm rent to protect your property and to have both parties on same page

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template preview imageVRBO Shortterm Rent Agreement with Tenant

VRBO Shortterm Rent Agreement with Tenant

Download this straightforward VRBO short term rental agreement in order to secure you are always dealing with serious guests that will act responsible.

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template preview imageCar Lease Agreement with Car Owner

Car Lease Agreement with Car Owner

Have you been looking for a Car Lease Agreement template? For an agreement between a customer and the owner of a car, download our Car Lease Agreement Template in MS Word now.

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template preview imageRental Agreement Confirmation

Rental Agreement Confirmation

How to create a Rental Agreement Confirmation? Download this real estate Rental Agreement Confirmation template now!

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template preview imageLease Rental Agreement

Lease Rental Agreement

How to draft a Lease Rental Agreement? Download this Lease Rental Agreement template now!

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template preview imageSample Rental Agreement In Document

Sample Rental Agreement In Document

How to draft a proper Rental Agreement between landlord and tenant? What is the meaning of a rental agreement? We have a detailed rental agreement template that you can download and use.

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template preview imageHousing Rental Lease Agreement

Housing Rental Lease Agreement

How to draft a proper Housing Rental Lease Agreement? What is a lease agreement for a house? Download our lease agreement template which is easy to use and contains all the necessary information.

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template preview imageGuest Rent Agreement Sample

Guest Rent Agreement Sample

How to make a short-term rental agreement with a guest? Print out your Guest Short term Rent Agreement agreement now!

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template preview imageEquipment Lease Termination Agreement

Equipment Lease Termination Agreement

How do you write a lease termination? What notice to give to terminate a lease agreement? Download our Formal Equipment Lease termination agreement now if your tenant is released from the lease agreement.

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template preview imageChinese Lease Agreement 租赁合同

Chinese Lease Agreement 租赁合同

How do I write a basic Chinese Lease rental agreement? Download this Lease Agreement in Chinese language (租赁合同) now!

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template preview imageLease Renewal  Agreement

Lease Renewal Agreement

How to write a Lease Renewal Agreement between landlord and tenant? Download this Sample Rental Renewal template that will perfectly suit your needs!

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