All you need to know about the difference between Rent and Lease

All you need to know about the difference between Rent and Lease

Rent is the periodic payments made to the owner of a property for the use of that property, which could be a building, residential space, commercial space, etc. It is an agreement with the tenant for a certain period to use of Property.

Lease is a contractual agreement to use a property for a long period of time. A lease agreement is made between two parties named as lessor and the lessee. One of the parties permits the other party to use and control an asset for a definite period without really buying it. This is not renting but it is a form of renting.

Lessor and Lessee

There are two parties in a lease agreement, that is lessor and the lessee. A lessee is a person who rents land or property from a lessor. The lessee is also known as the tenant. The lessee has only a restrictive control on the property or asset.

The legal owner of the asset or property is called a lessor. He has the complete right to take back the property from the current lessee and lend it to some other lessee.

Difference between Rent and Lease:

Rent

• Rent is paid monthly for using the property/asset.

• In a rental agreement, the property maintenance responsibility lies on the homeowner.

• In rent, the landlord can change the agreement anytime.

• There is no such offer given to the tenant by the landlord.

Lease

• The monthly installments are paid for the lease.

• In a lease agreement, property maintenance responsibility lies on the lessee.

• In lease, once the contract is signed, there’s no change in the contract for a fixed period of time.

• The lessee has an option to buy the asset at a residual price.

If you are searching for Lease vs Rent. There are many differences between lease and rent, you can decide based on your budget. A lease is a huge one-time payment whereas rent is monthly. You can also check out our various rental/lease/sale properties on www.nimmadhi.com