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You must know the difference between Rent and Lease

You must know the difference between Rent and Lease

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 Rent or Lease?

Rent refers to the regular payment of tenancy, which expires after the duration of a month and at the end of which it is automatically renewed. The specification regarding the number of days the renewal is, understandably a month unless the landlord specifies changes in the rental agreement.

Lease, on the other hand, refers to the conveying of land or property to another for a specified term or period of time. Once agreed to make periodic payments as suitable to the landlord, (six months or more) the lessee need not worry about changing any clauses until such a time arrives when the lease needs to renewed.

Some prefer leasing out their premises over renting as the former is prone to lesser price fluctuations as opposed to the latter. Also, neither can the lessee leave the premises without the completion of the lease term unless stated otherwise in the agreement. However, if the lessee must leave, he is provided with a cause notice denoting the period time within which he is to leave the premises.

Lease and rent are two words which now can be used interchangeably. By a far measure, both lease and rent can mean more or less the same thing. While convention holds that the difference exists in terms of duration, factually, it renders little difference to the rental agreement you will finally create, more so because the clauses within it need not be narrow definitions of what rent and lease are, but about what will suit you (either as a tenant or landlord) best.

So don’t worry about whether your agreement should be called as a rent agreement or lease agreement, as it’s just the tenancy agreement customized/tweaked to suit your needs and requirements.

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