Often confused between one another, and generally interpreted as one, leasing and renting of property are two important and distinct terms in the estate market. The two names are frequently used interchangeably. There is, however, a very important distinction between the two, especially when it comes to property agreements.
In a nutshell, a lease is a term used to describe a contract that allows one to use any kind of asset for a payment in return. These payments occur on a regular basis, and the lease exists for a specified time limit. On the other hand, renting is the term used to describe a situation where a person or group of people may reside in the property, and pay for their stay. On FourCreeds we cover some aspects which should be considered while buying a home.
For this purpose, Wemark Real Estate has listed below the difference between the two of them, and what each of their purposes is.
What Are the Major Differences Between the Two?
- Leasing contracts have two parties; a lessor and a lessee. A rental agreement’s two parties are landlord and tenant.
- Leases are easier to carry out for assets, as described above. On the other hand, the process of renting works better when dealing with properties and such.
- In the leasing process, the maintenance work is carried out by the lessee, while in renting, the owner/landlord is responsible for carrying out all the maintenance and required services.
- While the process of leasing is carried out for a prescribed and decided period of time, renting is done for a specific short period.
- Rent agreements and lease contracts both have terms and conditions in their respective contracts and agreements. The difference is that while these terms and conditions can be maneuvered as necessary in rental agreements, this cannot happen with a leasing contract.
- With regard to the expiration of the contract or the agreement, leases work on this principle, with the expiration often mentioned on the contract. This is not how it works with the renting process.
Renting and Leasing – Housing
- At the base, these are the main differences. A lease normally lasts and is written for twelve months, while an initial rent agreement for thirty days (renewable). A person could choose what kind of rental agreement they’d like, but the standard for a lease remains the same no matter what and doesn’t allow for any kind of negotiation or changes.
- It is important to note that every party must be okay with the terms of the lease. This includes the important details of duration and the various terms and conditions listed. Knowing this perfectly means there’s no scope for miscommunication.
- If one were to somehow break the written lease, this would normally result in paying off the amount from the deposit or finding another person to acquire the lease.
- At the end of a lease, the respective tenants cannot renew their agreement as this is not legally allowed. Therefore, you will have no choice but to find a new place, leave the current vacancy and find a different kind of agreement that may suit your new needs.
- If the situation is a bit wobbly, you could seek a rental agreement. These agreements generally come with a thirty-day term and will keep working on that cycle unless you intervene.
For better understanding, professional service is highly recommended. For this purpose, we personally recommend Wemark Real Estate, which comprises a core team filled with dynamic, experienced, and professional real estate agents in Adelaide. Wemark provides you with unparalleled services in property buying, selling, and leasing which are tailored to your exact requirements.
For the most accurate information and the best value service, contact Wemark Real Estate at 08 7200 1444, or email them at email@example.com!