Rental or Lease Agreement – What are the Differences?

Law

A rental agreement and a lease agreement are important legally binding documents that have to be completed before a landlord rents his / her property to a tenant. Rental or lease agreement – both types of agreements are of similar type, but are not exactly same. It is essential for you to understand the differences.

Period

A lease agreement covers property renting for a long time, generally 12 months or over. This is a very specific agreement in the fact that both parties’ responsibilities are detailed at the time of lease. It also consists of all the important information, which ensures the protection of both parties.

However, a rental agreement is not a contract for long-term. It generally occurs on a monthly basis. This type of agreement expires every month and gets renewed automatically as per the agreement between the landlord and the tenant. You may get free lease agreement here.

Changes in terms

In Lease Agreements, the lease period and the monthly rent amount are recorded and one cannot change them. Thus, landlords cannot raise the rent indiscriminately and a tenant cannot simply leave his property at anytime he wants with no repercussions.

In Rental Agreements, all the stipulations that are included are the same as can be found in a regular lease. But either the landlord or the tenant may change the agreement terms at every month-end. The landlord can increase the rent amount or make a request to the tenant to quit his property with no violation of the rental agreement. In this kind of agreement, a landlord has to give a proper notice of 30 days for quitting before requesting the tenant to get out of the property.

Advantages

A lease agreement helps landlords by offering the stability of long-term or guaranteed income and benefits tenants by making the lease length and rental amounts unchangeable. A rental agreement lets landlords renegotiate agreement terms month – month when there is quick rise in rental amounts.  Get lease agreement Florida online here on this legal forms website.