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 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.
• 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