What is the difference between a Rental agreement and Lease agreement?

Lease agreements

A lease agreement is an accord where the tenant is given the right to live in a dwelling for a definite time-frame (often for 12 months). The stretch of the tenure may vary depending on the tenant's preference and owner's will. Typically, a lease binds the tenant and the landlord for a longer span of time.

A lease brings the tenant and the landlord to a mutual arrangement on specific pointers like the rent amount, duration of the stay, rules about pets, effective dates, termination conditions, etc. This means that neither, the tenant or the landlord can temper with the rental agreement's clauses without each others' consent (in written). So, a landlord is benefited from a lease as the tenant cannot stop the payment of the rent or cannot renounce the property during the lease term as it is a contravention of the agreement. Correspondingly, the landlord also cannot force the occupant (tenant) to move out amidst the lease cycle.

Rental agreements

Contrariwise, a rental agreement is a mutual deal for a more concise time-period i.e. a month-to-month concurrence. This concord permits both, the tenant and the owner to change the terms of agreement whenever they like. Therefore, a landlord can raise the rent amount anytime and the tenant can decide to pack his/her bag and leave no matter when. Veritably, these rent agreements are auto-renewable after every 30-days provided no proper notice is being given by either party (that is mentioned by the clause in the agreement).

Candidly said, a rent agreement propounds the privilege to both parties (tenant and the landlord) to leverage a month-to-month living settlement. To this extent, a tenant can relish the freedom of living at someplace for a couple of months only and a landlord who requires tenant occupants for a few months only can do so without any hassle.