difference between Lease and rent

Difference between  lease and rent

difference between  Lease and rent

 A lot of people are always confused about lease and rent they couldn’t understand the difference between lease and rent.

 People are confused between lease and rents terms and conditions.

   Different between lease and rent

The lease is always used for long the term if you hire any assets more than 12 months on rent in that condition you will sign the contract lease agreement

For example,

                        If you are taking any office space on rent for long term like 5 a year or 10 years then you will sign the lease agreement, in the airline industry companies hire aeroplanes on lease for many years, Many construction companies hire machines for long terms.

These are few examples for lease and now I will tell you about rent.

If you are hiring any assets for less than 12 months than you will sign the rental agreement?

Suppose if you hire any cab for a few hours then It will call renting or you hire any machine for a few days then you will pay as rental money.

If you sign the 11-month agreement that is also rent agreement.

So basically for the long term the agreement you will sign the lease and if you are signing for short term like for few hours or day then you will sign the rental agreement.

Sometime this term could be change you heard sometimes about 6-month lease and 2 years rent agreement but on the but if you see on the brought level then maximum time lease used for long term and rent agreement used for the short term.

Term and condition 

Usually, if you hire any office space on lease then lessee responsible for maintenance but if you hire any cab for few hours then all responsibility of maintenance on the owner of the cab.

Negative and positive points

If you give your property on lease for 5 years then you will earn the same amount of money till complete five years you locked the rent for a long time. 

The lease gives security to the lessee of rent that owner cannot increase rent lessee will pay the same rent for 5 years.

If you hire any cab on rent then they fluctuate their rent on a daily basis and if you have given any room on rent then you can grow your rent every year.

Rent agreement can terminate with small notice of 1 month usually on house rent agreement, you can give 1 month legal notice for the renter.

The lease cannot be easily terminate suppose if your lease of 20 years but landlord want to break  the lease between the lease period then owner could be facing high penalties and significant it could be 6 month or 1-year rent penalty.

ownership can be transferred to lessee after lease periods if they will pay the current amount of property but It will not possible in rent agreement case owner is always ownership.

If you want any property for few months then hire it on rent because if you don’t need to use that property after a few months then why you will waste your money.

If you want any space for long time on rent then take it on the lease because here you have few benefits like you have security about you will pay the same rent for a long time as long as your lease.