The difference between lease and rent is apparent from their definitions, however, there are some other key differentiating factors. I will take you through every aspect in detail in this answer but first let us know what is a lease and what is a rent or rental agreement.
A lease is a transfer of rights to use the property for a particular period of time in return of rent. This arrangement is usually preferred by the commercial property owners and the agreement is usually for a longer time period. A rental agreement on the other hand is also a legal agreement where the landlord gives his/her land to a tenant for residential or commercial use for a shorter time span.
The differences between lease and rent are on the basis of the following factors:
Parties involved:In a lease, the parties involved are known as lessor and lessee, whereas in rental arrangement, the parties involved are referred to as landlord and tenant.
Timeframe:A lease is usually agreed upon for a longer time period, i.e. 6-12 months or more as agreed upon by both the parties, whereas rent is for a shorter time frame, i.e., on a month-to month basis for up to 11 months.
Repair Expenses:The expenses for maintenance and repairs are borne by the lessee whereas in a rental arrangement, tenants pay for such expenses.
Terms and Conditions:In a lease agreement, the terms and conditions cannot be changed post agreement, however, if both lessee and lessor agree to amend some part of the contract they will have to enter into lease amending agreement. Landlords can change the terms in a rental agreement arrangement by giving prior notice to the tenant.
What is the difference between lease and rent?
Balaji
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2021-03-05T15:52:19+00:00 2021-03-08T12:43:08+00:00Comment
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