For Rent or for Lease, What’s the difference?
Is that unit or property for rent or for lease? This question comes up often in Real Estate. Often times these terms are misused by many, so let’s get down to the nuts and bolts and get a clear picture of what the difference is between these two terms.
Renting has to do with the terms of the agreement between the two parties or tenant and landlord. When the term for rent is used typically means that the home, apartment or commercial unit is available on a short-term basis and the contract will auto-renew after each term. A Month to Month agreement would be a good example of this; it can be canceled by the landlord or renter with proper written notice in advance. Also, the terms of the agreement may be changed by the landlord with written notice. If the renter is unhappy with the new terms they usually choose to move out and rent elsewhere.
Leasing is a long-term that is present. Most often it will be set for 6 months or 1 year but could be set longer if both parties agree. In this situation, a renter is often called a lessee and the landlord may be called Lessor. The provisions of a Lease may not be changed during the term without the consent of all parties involved. The recognized protection or benefit for the renter or lessee is a set rent for the lease term. Many renters look for a lease because it gives them peace of mind while they are on a lease that the rent may not be changed. Landlords or Lessor also enjoys the benefits of the lease as well because they know they have a tenant for the length of the lease. Leases can offer both party’s comfort knowing that the terms are set until a specific date.
Hope you now have a better picture of the definitions between for rent and for lease. Thank you for taking the time to check out our blog and as always, hope you are having fun in Real Estate.
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