Are Lease And Rental Agreements the Same?
We have all heard of lease and rental agreements. However, very few of us understand the difference between them. Do you know? If not, don’t worry. In this post, we will discuss lease and rental agreements. Read the full write-up to learn more about them and the differences between a lease and a rental agreement.
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Before signing any document, you should know the difference between a lease and a rental agreement. The contract papers for both are slightly different. Read the following write-up carefully to learn more about them.
Suppose you want to rent your apartment to a person. You can do a lease agreement with him for a particular time. You can prepare lease agreement papers with your conditions to ensure the rental income.
If the tenant agrees, he can sign the agreement papers and lease your property. You can add a clause like cleanliness, maintenance and others. You can hire a professional firm (like a CA tax agency) to prepare your documents.
The lease agreement is nothing but a legal agreement between two persons. Both parties have to agree on payment, rules, time and other essentials before signing the agreement paper. In today’s life, it is difficult to understand a person. Having a lease agreement ensures your safety.
Suppose a person wants to stay in your house for a couple of days. If the time is short, you can do a rental agreement with him. You need to mention the total payment the person has to pay, the days he is permissible to stay, and others on the documentation. In the long run, both parties will be helpful from this agreement.
What Is The Difference Between A Lease And Rent?
As we have already discussed the basics of the rental agreement and lease agreement, here are some of the differences between lease and rent.
- If you are doing a lease agreement, that doesn’t mean it has to be a residential property. You can do a lease agreement for any of your assets. On the contrary, rent agreements are only for residential properties.
- For a long time, you should do a lease agreement. For a shorter time, a rental agreement will do just fine.
- Lease agreements can’t be altered. Rental agreements can be renewed with proper notice.
- For a lease agreement, both parties will have equal rights over the agreement. Rental agreement favours mostly landlords.
- During the lease, the person taking the lease is responsible for maintaining that item. During the rental, it is up to the landlord to do all the maintenance.
- The payment structure will be the same throughout the lease agreement. For rental agreements, the price may change due to circumstances.
- You can get some tax benefits for a lease agreement.
- Both agreements can extend once the existing contract finishes.
We hope you understand the basic differences between a lease and rental agreements. We have discussed only the important ones here. Look for professional help to learn more.