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

The main difference between a lease and a rental agreement is indeed that a lease typically covers a longer term than a rental agreement.

A lease is a formal contract that generally spans a fixed period, often six months or longer, and outlines the terms and conditions governing the rental of property. This stability benefits both landlords and tenants, as it provides a guaranteed duration of tenancy and protects against sudden rent increases or terminations.

On the other hand, a rental agreement usually lasts for a shorter period, often on a month-to-month basis, allowing for more flexibility. This means that the terms of the rental can be renegotiated more frequently, which is suitable for those who may need to relocate or change their living arrangements in the near future.

Understanding this distinction is crucial for individuals involved in real estate transactions, as it affects planning, liability, and financial agreements. Leases tend to impose stronger obligations on both parties for a longer duration, whereas rental agreements allow more freedom and adaptability concerning the rental relationship.