A lease is a contract for specific time it may be 6 or 12 months after which contract will expires, and the rent payment shall be made within the terms & conditions of the lease. Real estate leases are also called rental agreements.
Lease is a contract renting of land, building etc. for specified time period to a person or firm. The payment made to owner of a property for the usage as determined by the lease or rental agreement called rent. The length of lease is 6 to 12 months and it can be modified as per need but two or more parties should be agreeing in the lease. Rent payment can be made for long as lease requires it. Lease managed by property owner and Rent managed by tenants who pay the rent to use the rental property.
Relationship - Lease and Rent
In real estate lease is contractual agreement that define the terms of the use of property. This will includes that what is being rented & for how long with other conditions. Whereas rent is the payment made to owner after some specific time for the use of their property, which can be a building, residential space, house, apartment, room, lofts, condos, etc. But in business cases rent is the payment or series of payments made to owner of the rental property for using it, such as equipment, vehicle, machine, etc.
Time & Payment
Leases are mostly set for the period of 6 or 12 months, but it may cover more or less time. The rental agreement word relates to lease. Because lease is contractual agreement, both the parties are obligated to abide by it for the mentioned duration. But rent must be paid on time as per the agreement, if in case rent is late then late payments charges can be apply and same as it can be lies on the lease.
When the lease expires, renters are automatically move to month to month rental agreement until both parties will sign the new lease with the new expire date and both parties move back from month to month agreement.
Month to month agreement come with various pros & cons for the both parties. As a tenant, month to month rental agreements give the freedom to move out anytime, without any worry about transferring or breaking the lease agreement. But for the property owner, it will make rental income uncertain.
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