Rent agreement Vs. Lease agreement – Which to Choose?

rent agreement, nrihelpinfo

The rent agreement is a written contract that is signed between two parties, the tenant and landlord, as the testimony of the granting of tenancy/residency rights to the tenant by the landlord for a specified period.

Difference between rent and lease

The rent refers to the regular payment of the tenancy, which expires after a month and is automatically extended after it expires. The information about the number of days of the renewal is, understandably one month, unless the landlord specifies changes in the rent agreement.

On the other hand, lease refers to the conveying of land/property to another for a specific term or period. Once it has been agreed to make regular payments as suitable to the landlord (six months or more), the lessee no longer has to worry about changing any clauses until such time arrives when the lease needs to be renewed.

Some prefer leasing out their property over renting, as the former are subject to lesser price fluctuations as opposed to the latter. Also, a lessee cannot leave the premises without the end of lease period, unless stated otherwise in the contract. However, if the lessee has to leave the property, he is provided with a cause notice stating the period time within which he should leave the property.

Lease and rent are two words that can now be used mutually. By a far measure, both rent and lease can mean more or less the same. While the convention holds that the difference exists in terms of duration, it actually makes little difference to the rental agreement that you will finally create, especially since the clauses in it do not have to be narrow definitions of what lease and rent are but about what will suit you (either as a landlord or tenant) best.

So do not worry about whether your contract should be referred to as a rent agreement or a lease because it is just a tenancy agreement that is tailored to your needs and requirements.

What information should a landlord and tenant provide?

The landlord must provide the following information to the tenant before the occupancy of the residential space:

1. Name, phone number and permanent address of the landlord.

2. Name and telephone number of the person who looks after the residential premises in question.

While the tenant should disclose –

1.         Mode of Payment of various bills.

2.         The number of residents in the residential space.

Other responsibilities include that the landlord ensures that the premises are vacated by his previous tenants within the deadline specified in the tenancy agreement and to pass a copy of the contract to the tenant within 21 days of moving in the rented space.

What is a security deposit?

It is the deposition of a relatively large amount of money with the landlord if that the tenant opts to pay through monthly rent. In the event of a lease, this deposit can be requested if you subscribe to any maintenance or service.

It is to ensure the continuation of the monthly payment if you should fail to pay it on time. The deposit serves the same purpose in the case of a lease where if the lessee was unable to pay the maintenance costs or security fees, it could be deducted from the deposit. After the contract has expired, the remaining amount of the deposit will be returned to the lessee or tenant.

When should the rent be paid?

The rent is usually due in the first week of each new month unless a different due date is specified in the agreement, there is universal consent with the deadline to be the 1st of each month.

Read More: Important clauses to draft in a Rent Agreement

Should a rental agreement specify pet allowances?

Possibilities are you may decide to get yourself a pet after moving in and signing a rental agreement while the contract itself does not contain any restrictions or specifications for pet allowances. There is no specific section or chapter in the Rent Act of any state where the landlord can refuse to rent the said property due to raising a pet. However, if the landlord adds an additional clause or term specifying the same, the tenant may need to empty the premises.

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Rent agreement Vs. Lease agreement – Which to Choose?

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