A rental agreement is signed for a shorter period of time and can be as short as month to month
Lease agreements are generally for long periods of time of about 1 to 3 years, though some areas do have monthly leasing terms.
There is no general accounting standard for a rental agreement.
Leasing contracts are based on the accounting standard 19 (AS-19)
Renting parties are referred to as the landlord (property owner) and the tenant (person living on the property).
Leasing parties are referred to as the lessor (property owner) and the lessee (person living on the property) though when leasing real estate the term renter is sometimes utilized.
- Maintenance Responsibilities
Rental maintenance is the responsibility of the property owner, or the landlord to ensure the property is kept in a livable condition according to rental laws.
Leased property maintenance most often falls under the responsibility of the lessee living on the property unless otherwise stated in the lease
Once the rental agreement is signed the contract states that the landlord has the right to change the agreement at any time that they choose within lawful measures
Once the lease contract is signed no changes can be made for a specified amount of time.
When the rental agreement is over there is no offer given to the tenant.
At the end of the lease term, the lessee has the ability to purchase the property. A lease option gives the lessee the right to purchase but does not obligate them to purchase the property. A lease-purchase contract can legally bind a lessee to purchase the home at the end of the contract.
In a rental agreement, all monthly rent payments go straight to the landlord
In a lease agreement, a portion of the monthly lease payments can be put towards the purchase of the home at the end of the lease term if agreed upon in the lease contract by both parties.
These differences of course are just the most common generic differences between lease contracts and rental agreements and specific local laws should be looked into before deciding to lease a luxury property. It is best to seek the advice of an experienced local realtor with leasing experience.
Leasing and renting luxury properties has its plus’s and minus’s so it depends on each individual and their circumstance. A seasoned realtor with expertise in leasing and renting luxury properties can help tremendously.