Delineating the distinction of a Lease and Rental Agreement

12 month leasing cycles don’t fit appropriately with the lifespans of tenants and thus they always field questions regarding the same. There are many tenants whose leasing requirements may vary from time to time where some tenant might be in the town for only the six-month internship or the nine-month program. For instance- some tenants are looking ahead for the official transfer to another city, but they are not aware when they will need to move.

A few tenants want to live somewhere until they are ready to buy, but they don’t want the full year commitment as their stay is not consistent. .  For the landlords, 12 months leases though are generally preferable, but at the moment, depending on the demand, how easily you would be able to find out the tenant who is willing to sign a 12 month lease? For the reason, some landlords allow their prospective tenant to get on the month-to-month rental agreement.

So it’s vital to figure out the difference, read it below:

What is lease?

When it comes to leasing, it indicates towards the period of the leasing that gives away the right to tenants to live in the dwelling for a fixed time period that is usually 12 months, but that could be any length of the time that ranges from time period of three months to 24 plus months. Through a lease, the landlord and tenant, both get agreed to the fixed terms and conditions mutually such as the- duration of the agreement, rent, rules regarding pets etc.

With this lease agreement, neither landlord nor tenant has right to change the agreement unless there is any consent in the written form. The lease has proven to be mutually beneficial since the tenant during this lease period cannot stop paying the rent or vacate the property. if he does that, it would be considered as the violation of the agreement. In the same way, the landlord also has no right to arbitrarily force the tenant to move. For example- landlord can’t force the tenants to give the space to their relatives or for any other use. It’s suitable for the long lets apartments or leasing.

What is rental agreement?

In contrast, a rental agreement is a kind of month to month agreement. In this agreement, both tenants and landlords are free to change the terms after the period of 30-day period. In this term, landlord can easily raise the rent or can also make a decision of offering the space to someone else or can also enact the “No-Pet” policy.

Likewise, the tenant also has all the rights to move somewhere else. Rental agreements are subject to be renewed automatically at the end of each 30 days of period unless or until any party gives the proper notice, as described by the terms of the agreement with the local laws such as 30 days notice, 60 days notice, etc.

Rental agreement gives the liberty to both the parties to enjoy the month-to-month agreement. A tenant can avail the pleasure of his freedom of living elsewhere for only one or two months. As well, landlords may need the tenant occupancy for a few months before initiating the renovations in the springtime.


A lease agreement allows both parties with the long-term security where a rental agreement offers more flexibility. In other context, tenants who want to establish a home must go for lease agreement where the people who are looking for temporary shelter for a transitional time must go for the rental agreement.

Each state, municipality and county has different laws governing the leases and rental agreements. Some localities may carry the rental control where others don’t. Some localities permit each party to give away with the other 30 days notice during the month-to-month agreement where other require some advance warning.

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