Lease vs Rental Agreement Compared

Many people think that a lease or rental agreement are the same thing. While they are both very similar, there are a few key differences. Therefore, if you are in the market for a piece of property, you will want to make sure that you understand the difference between them. Here are a few things to keep in mind with leases and rental agreements. 

Rental Agreements

The main thing to remember about rental agreements is that they are more short-term arrangements. With most rental agreements, they are set up as a month-to-month commitment. If nothing changes, the agreement renews at the beginning of every month. With this type of agreement, either party can get out at any time. The landlord can raise rents on a monthly basis if they wish. 

Lease Agreement

A lease is a more long-term agreement. With this type of agreement, you will be obligated for a certain amount of time. For example, a typical lease term is one year on many types of property. This means that the landlord and the tenant are both obligated to the deal for at least a year. If either one ends the agreement, they may have to pay the other for breaking the contract terms.

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