Difference Between A Lease And A Rental Agreement
A lease or a rental agreement refers to an agreement that a tenant and landlord sign authorizing the tenant to use the said property and to keep it in possession for a certain period. The term property here can be replaced with office in office leases, car in car leases or cell tower in cell tower leases.
Though rental agreement and lease are used interchangeably, there are a few differences between the two. The basic difference is in the duration for which the agreement is made. Rental agreements are usually of very short durations such as 30 days. On the other hand, the term of lease is normally from six to twelve months. Another difference is related to the renewal of the agreement. Renewals take place automatically in the case of rental agreements while in lease agreements they do not happen.
Mastering the art of a lease or rental agreement is very important because it is a legal document. The names of tenant, the amount of rent, time of payment, and mode of payment must be specifically mentioned in the terms of the agreement. Understanding the terminologies and the mechanism will help equip you to better negotiate a good lease or rental agreement deal.
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