Do you know the difference between a rental agreement and a lease? Check this out.
allbusiness.com and forbes.com stated the following differences:
A lease has a set term, usually 12 months (but can be from 3 months to 24 months and up). A rental agreement is a month-to-month agreement.
A lease needs to be renewed, but a rental agreement is renewed automatically after each 30-day period.
Terms and Conditions:
A lease has fixed terms and conditions, such as the rental fee, rules regarding pets, duration of the agreement, etc. Neither party can change the agreement until the lease expires or both parties agreed to change it prior to the contract’s expiration date. On the other hand, in a rental agreement, both parties are free to change the rental agreement at the end of each month (subject to any rent control laws).
A lease offers more long-term security to both parties, while a rental agreement offers more flexibility.