Given that we cannot own everything we need, we will, at some point in life, decide to rent or lease. However, these two terms are sometimes used interchangeably. There is a significant difference between leasing and renting an apartment. In this article, we intend to highlight the difference between a lease and a rental and show you why these two terms are not similar and cannot be used interchangeably.
What It Means to Lease a House or an Apartment
When you lease a house or an apartment, you are signing a legally binding agreement between you as the lessee and the owner of the house or apartment, hereby called the lessor. The lease agreement outlines the terms of the agreement, the length of time the house or apartment will be leased, and the amount of money to be paid to the lessor throughout the length of the lease.
Typically, a lease agreement lasts for 12 months or one year. In other instances, it can last up to a period of five years, but it cannot automatically go beyond the end of the stated term.
What It Means to Rent a House or Apartment
Just like leasing, renting involves an agreement between a tenant and a landlord. However, it does not mandate the signing of a formal contract, and the agreement can be entered into through a verbal agreement between the two parties involved.
The limited restrictions associated with renting indicate that it can exist in the short term or exist as a month-to-month arrangement. The agreements associated with renting also undergo constant reviews; sometimes, it can happen each month. Still, the tenant makes consistent payments to the landlord and must adhere to the same rules that are also found in a lease. Some of these agreements include rent and security deposits, utilities, and if pets are allowed.
The Differences Between Leasing and Renting
There are differences between a lease and a rental. For starters, lease terms are longer, ranging from one year to five years. On the contrary, rental terms are month-to-month or even shorter.
Another difference between a rental and a lease is in the details of the contract period. For a lease, you cannot change the charges of the premises as long as the contract is still in force. As for a rental, the landlord can change the payment terms at the beginning of the next month or after giving a one-month notice.
Which One of These Is Best for You?
A lease or a rent both refer to legally binding contracts. Either of these two requires that you abide by the terms of each contract, and breaking the agreements attracts legal consequences. Enforcer Pros can help you gain a deeper understanding of leasing and renting as well as any HOA enforcement issues in Georgia.