What is the primary difference between a lease and a rental agreement?

The primary distinction lies in the duration and binding nature of the two agreements. A lease is typically a long-term contract, usually set for a duration of one year or more, creating a stable and secure arrangement for both the landlord and the tenant. This long-term binding commitment means that the terms of the lease must be adhered to for the entire duration, providing both parties with legal rights and responsibilities.

In contrast, rental agreements are generally understood to be short-term arrangements, often on a month-to-month basis. These agreements can be more flexible and may not require the same level of commitment, allowing either party to terminate the agreement more easily with appropriate notice. This flexibility can be appealing for tenants who may not want to commit to a long-term lease.

Understanding this distinction helps clarify the nature of the agreements and the intentions of both landlords and tenants, allowing for better decision-making in real estate practices.