Lease is a legal paper that states the terms of agreement between two parties, where one agrees to rent the property from another for a specific period of time. This agreement guarantees regular payments for a specific period, to the owner of the property (lessor) and allows the renter (lessee) to use the asset for that period. Both the parties must maintain the terms of the agreement in order to keep the lease valid.
Contents of a Lease
All the details of the agreement are put out on the leasing papers. For instance, if you want an apartment on lease, the document will generally contain the following details:
- The monthly rent
- The due date of the rent
- The lease period (years or months)
- Details about the security deposit
- Other essential information like, the number of occupants allowed, pets or no pets and so on.
On-Lease vs. On-Rent
A rental agreement is usually for a short period of time such as for a month and it renews automatically at the end of each month, unless the landlord wants to end the agreement. The terms of the agreement can be changed by the landlord at any time, only by giving a prior notice in writing.
On the other hand, a leasing agreement allows the lessee to occupy the unit/property for a specific period of time and for pre-set terms. The time for leasing is generally longer than the former, i.e. for six moths, for a year, for 99 years and so on. The terms of the agreement can not be changed by the lessor unless the lessee agrees. Unlike, a rental agreement, a lease agreement does not renew automatically.
