Lease Agreement Vs Rental Agreement Know The Difference
Many people living in metropolitan areas such as Mumbai, Bangalore, Hyderabad and Delhi live in rental housing. However, among these people, only a few people know the difference between a lease agreement and a rental agreement? Are you familiar with the same thing? Do you know the difference? Let us find out:
Lease Agreements
The term of the lease and the monthly rent amount have been recorded and cannot be changed. This ensures that the landlord cannot increase the rent at will, and the tenant cannot leave the property as they wish. The lease agreement takes effect at the specific time specified in the agreement and is then deemed to have been terminated. If the tenant wishes to remain in the property, both parties must sign a new lease agreement.
The landlord is not obliged to extend the terms of the old lease and, if required, is free to change the terms and amounts of the lease. For this reason, some tenants tend to sign a longer-term lease if the monthly rent is very affordable and in an area where the rent is likely to rise over the lease term.
Rental Agreements
The rent agreement varies from the lease agreement in that it is not a long-term arrangement and typically happens on a monthly basis. This month-to-month lease agreement expires and is renewed each month on the agreement of the parties concerned.
All the same, provisions are included in the monthly lease as in the regular lease; however, either the tenant or the landlord can amend the terms of the agreement at the end of each month. The landlord has an incentive to boost.
Pros and Cons
Both lease and rental agreements have their advantages and disadvantages.
Rental agreements allow landlords to rent properties that may not be suitable for long-term tenants. It is beneficial if the rental amounts will increase quickly, allowing the owner to renegotiate the terms of the deal more frequently than the contract.
A Lease, On the other hand, provides guaranteed long-term income stability, leases are beneficial to landlords. This is beneficial to tenants because it locks in the rent amount and lease term and cannot be changed even if the property or rent value rises.
When considering or drafting a lease or rental agreement, it is recommended that you seek the services of a lawyer.
What you should keep in mind?
No matter where you go, the laws regarding leases and rental agreements will vary from state, city, and municipality. Therefore, you may find certain societies or regions that follow rent control regulations, while others do not.
As a tenant, please make sure what standards and laws are followed where you want to rent an apartment or house.
If you want a safe and lasting agreement, then the lease may be the ideal choice, but if you want more flexibility, please sign a rental agreement.