Rental Agreement vs. Lease Agreement

Rental Agreement vs. Lease Agreement

Rental Agreement vs. Lease AgreementWhen an individual is searching for an apartment to rent, it is important that he/she understands the difference between a rental and lease agreement. Understanding the way in which an individual's contract operates is a vital aspect of renting or leasing property.

Though the terms rental agreement and lease agreement are frequently used interchangeably, it is important to note the various differences that exist between these two types of contracts. The type of contract that an individual enters into will determine the responsibilities and the rights that he/she possesses while he/she is held to this contract. 

In addition, these contracts range in regard to the responsibilities and rights maintained by the landlord who is renting property to a tenant.

A lease agreement is a type of contract that regulates the relationship between tenants and landlords. A lease agreement will last for a specified duration of time. In many instances, this period lasts for one year, though this may vary substantially. While the contract is active, both parties are required to adhere to all conditions detailed in the contract. No alterations can be made to the contract while the contract is active. Therefore, a landlord cannot choose to increase the cost of rent.

The conditions associated with rental agreements are slightly different. For example, these contracts function as month-to-month contracts. Every month, a tenant can choose to renew his/her rental agreement or leave the property. In addition, once the month ends, alterations can be made to the rental contract. Therefore, a landlord may decide to increase the cost of rent at the end of every month.

Both rental and lease agreements have beneficial and disadvantageous features.




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