What is the difference between a lease agreement and a rental contract?

Answer 1

The major difference between a lease is that a rental contract may not obligate the tenant or the landlord for a fixed amount of time, for example and not more than, : one year, while a lease, when mutually signed, is legal and binding for the amount of time on the lease and must be renewed for continued tenancy. A non-lease rental agreement can be indefinite but may be terminated at any time without any penalty for breaking such. If the lease is broken the landlord may be entitled to keep security deposits and also be entitled a month's rent for each month the unit is vacant during the remainder of the lease term or until the unit is rented out, whichever comes first. However, this is not true of a non-lease rental agreement.

Answer 2

The Rent Agreement is a very important document which gives a lot of liberties to both the parties owner’s property is secured and the tenant gets to have an address proof. The tenant and a landlord must put the details of their verbal agreement in writing and have the document registered to give it legal validity in order to formalize the house rental process.

Additionally, if the rent agreement is not signed and properly recorded, neither the tenant nor the landlord will be able to seek redress from any legal authority in the event of any subsequent issues between the two parties.

While a lease agreement is a legally binding agreement between two parties (lessor and lessee) that allows the lessee to occupy a property for a long period of time. Earlier people have leased land, buildings, and livestock. However, leasing industrial equipment is a relatively new concept. For the use of an asset or property, the lessee pays the lessor. The lease agreement can terminated if either party violates the terms of the lease agreement.

Mostly the Rent Agreement is made for 11 months and Lease agreement is made for a longer duration which can extend for more than 2 years also.