Difference Between Lease and Rental Agreement

Currently, most people are living in another city or town for their job and business purposes. When people live in another country, city, or town they live in others property. The landlord gives them their property after the rent or lease agreement. There are so many terms and conditions in that agreement. Most people don’t know the exact meaning of lease or rent agreements. In this article, we will discuss the difference between lease and rental agreement. After reading this article you will be able to understand the difference between both these terms.

lease agreement vs Rental agreement

Parameters	Lease Agreement	Rent Agreement
Meaning	The lease agreement is a written document between the lessor and the lease. It is the agreement which is made when we want to hire the property for more than 1 year.	Rent agreement is made when we hire something period less than 12 months. This agreement provides permission to use a property for less than or equal to 11 months.
Changes	No changes is possible in this agreement when it was signed.	Changes are possible in this agreement.
Term	Long-term more than 1 year.	Short term less than 12 months.
Maintenance	The responsibility of the maintenance lies on the lessee.	Maintenance of the property managed by the owner of the property.
ownership	At the end of the agreement, there is a possibility to buy that property.	The owner remains always the owner.
Renewable	Not applicable in the lease agreement.	The agreement renews itself.

Lease agreement 

The lease agreement is a written document between the lessor and the lease. It is the agreement which is made when we want to hire the property for more than 1 year. Most of the lease agreement is made for the 10-to-15-year time period. If we talk about its examples when we hire an office for our business for the 15 years’ time period lease agreement are signed there. Most of the civil construction companies hire their machinery on lease.

For example, the construction of a hydroelectric project. The construction period remains more than one year. For this purpose, all the machinery hirer on lease. Such kinds of projects are completed with high investments. To reduce the cost many civil construction companies, hire machinery on lease. And in this way, a lease agreement is needed.

Most of the airline’s planes are on lease. In simple words, when we hire something for more than a 1-year lease agreement is signed there. A lease agreement is also known as a lease deed.

Rental agreement

Rent agreement is made when we hire something period less than 12 months. For example, if we hire a taxi for rent for 5 or 10 days or any desktop for office for 2 to 3 Months are examples of rent agreement. Always rental agreement is made for 11 or less than 11 months. In rent, agreement changes are possible after the agreement. Rental agreement, the maintenance of the property is the responsibility of the owner of the property. In short words, a rent agreement is an agreement for the short term.

Difference between Lease and Rental agreement

1. When we hire something on the rental agreement the maintenance is the responsibility of the owner of the property. On the other hand, in the lease agreement, the maintenance of the property is the responsibility of the person who hired the property. The person who hired the property is known as Leese.
2. In the lease agreement, the rental of the property is fixed at the time of the agreement. On the other hand, in the rent agreement owner is free to change the rent on the basis of the month, day, and hours. For example, when we hire a building with a lease agreement for 10 years. we fix the same rant for the 10 years. And on rent agreement, the rent of the thing changes from time to time.
3. The rental agreement is breakable. In this agreement, the owner is free to break the agreement in short terms. But in the lease agreement breaking of agreements is not possible before the signed time period.
4. The owner remains always the owner in the rent agreement. On the other hand, in the lease agreement at the end of the agreement, there is a possibility to buy particular property at a suitable price.
5. There are no perimeters are fixed in the rental agreement. On the other hand, there are suitable parameters in the lease agreement.
6. The rental agreement renews itself. But this is not applicable in lease agreements.

these were the key difference between lease and rental agreement.

Conclusion

Both the agreements have their own advantages and disadvantages. A lease agreement stands for the long term and business or commercial needs. And rental agreements stand for the short term and small or residential buildings. Both the agreements are very necessary for a new lifestyle. People must have knowledge about these agreements before signing any agreement like this

We hope you understand the concept of the difference between lease and rental agreement. If you have any quarry or doubt about this please feel free to contact us.