What is a Lease Agreement?
Leasing a property involves requiring the tenant to sign a lease agreement. This is a contract between you as the landlord or owner of the property and the tenant. This arrangement gives the tenant the exclusive right to live in your property for a certain period of time, which can be one year. Once both parties signed the lease agreement, it becomes a binding contract.
The major terms and conditions that are often included in a lease agreement include the rent amount, duration of lease, and the specific rules the landlord set in using the property. It is advisable that the lease contract must be well-worded, clear, direct, and strong to help protect the interests of each party to the agreement.
What is a Rental Agreement?
Same as lease agreement, a rental agreement must also contain all the significant terms and conditions. The only major difference is the length or duration of the contract. A rental agreement has often a much shorter tenancy period, say 3 months, than a lease agreement does. It is also based on a month-to-month basis, depending on the agreement of the tenant and the landlord. Terms of rental agreement can then be changed after it expires.
So, basically, leasing a property means finding a tenant for a long-term tenancy while renting it out involves a shorter time period.