Leases vs. Rental Agreements: What's the Difference?
Flexibility and stability for the property manager
Erin Eberlin is a property and property owner specialist, covering rental management, renter acquisition, and residential or commercial property financial investment. She has more than 16 years of experience in realty.
Hispanolistic/ Getty Images
The terms rental arrangement and lease arrangement are typically used interchangeably, but they are quite different. A rental agreement is one kind of agreement a property manager can sign with a renter. A lease arrangement is an arrangement the majority of people connect with renting a residential or commercial property.
Rental contracts provide more flexibility for landlords and renters, while lease arrangements use more stability. Learn the essential differences in between these two types of living arrangements.
What's the Difference Between Rental and Lease Agreements?
Length of Rental and Lease Agreements
Rental arrangements are generally short-term. It is typical for these agreements to be legitimate for a period of 30 days. In particular cases, they can be even shorter, lasting as low as a week.
Lease arrangements are for a much longer term than rental contracts. The most typical lease term is for one year, but leases can be for any length of time as long as the property manager and tenant consent to the length. They can be as brief as 6 months or as long as thirty years, which would be more common in industrial leases. The longer the lease, the most likely it is that your state will require it remain in writing.
Renewing a Lease or Rental Agreement
Generally, rental arrangements restore instantly as soon as the initial term expires. All the terms of the initial arrangement are still valid, consisting of the length of the arrangement. So, if the original term was for a duration of thirty days, the contract will immediately restore for another one month.
Lease contracts do not automatically renew. Once the original lease term is over, the renter would have to sign a brand-new lease with the proprietor if the landlord or occupant preferred a long-term contract.
Regards to the Contract for Lease and Rental Agreements
The property manager can change the terms of the rental contract. It consists of changing the length of the arrangement or the rental rate. To make any modifications, however, the property manager needs to offer the occupant correct notice.
This written notification will vary based on state law however is normally 1 month
1
Leases Vs. Rental Agreements: what's The Difference?
Hermelinda Llanas edited this page 6 days ago