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What is the difference between a lease and a rental agreement?

Picture of Chris Battis By   ·  1 minute read

As a lawyer, I can provide legal advice on the difference between a lease and a rental agreement.

A lease and a rental agreement are two different types of contracts that govern a tenant's use of a landlord's property. Both documents control the relationship between the landlord and the tenant, but they have some essential differences to be aware of:

  1. Lease agreements: A lease agreement refers to a binding contract between two parties, whereby the landlord agrees to let out their property to a tenant for a specific period, usually long-term, typically for a period of 6 months to a year or more. It can be for residential or commercial purposes. The lease agreement defines the rights and obligations of both parties and covers specific details such as the duration of the tenancy, payment terms, renewal clauses, and terms for termination of the lease. The tenant is obliged to adhere to the terms of the lease agreement throughout the lease term, and if they violate the agreement, they can be evicted.
  2. Rental agreements: A rental agreement, also known as a month-to-month tenancy agreement, is a contract that allows a landlord to rent out their property to a tenant on a month-to-month basis. A rental agreement can be more flexible than a lease agreement since it allows the tenant to occupy the property for a shorter, more flexible period. A rental agreement does not usually set forth a specific term or duration, and either party may terminate the arrangement by giving notice of the intention to terminate a specified period before the next payment is due.

In summary, the main difference between a lease and a rental agreement is the length of the tenancy. A lease has a set term, while a rental agreement is month-to-month. Leases provide more security for the landlord, while renting offers more flexibility for the tenant.

It is essential to note that the laws regarding lease and rental agreements vary from state to state. Therefore, it is advisable to seek legal advice from a licensed attorney on specific state laws regarding the agreements.