Houses for rent or Lease
In real estate, a lease is a contract for a specific period of time — often 6 or 12 months — after which the contract expires, while rent is the payment made under the terms of the lease. Real estate leases are also commonly known as "rental agreements."
Comparison chartLease versus Rent comparison chart
|Meaning||It is a contract renting land, buildings, etc., to another; a contract or instrument conveying property to another for a specified period||The periodic payment made to the owner of a property for the use of said property, as determined by a lease (rental) agreement.|
|Length of Agreement||Often 6-12 months, but can be set for any length of time that two or more parties agree to in the lease.||Payment is made for at least as long as the lease requires it.|
|Managed By||Property owner||Tenant who pays rent to use the property|
|Definition (Wikipedia)||A lease is a contractual arrangement calling for the lessee to pay the lessor (owner) for use of an asset.||Renting, also known as hiring or letting, is an agreement where a payment is made for the temporary use of a good, service or property owned by another.|
Relationship Between Lease and Rent
In real estate, a lease is the contractual agreement that defines the terms of the use of a property. This includes what is being rented, for how long, and other stipulations that both parties agree to (e.g., whether pets are allowed on the property).
Rent is the periodic payment made to the owner of a property (often called "landlord") for the use of said property, which could be a building, residential space (house, apartment, etc.), commercial space (office, store, warehouse, etc.), or land. In other business cases, rent is the payment or series of payments made to the owner of a property for the use of that property, such as equipment, vehicles, industrial machinery, and so on.
How Long a Lease Lasts
Leases are usually set for a period of 6 or 12 months, but can cover more time or less. The term "rental agreement" is synonymous with "lease."
Because a lease is a contractual agreement, both parties are obligated to abide by it for its duration. Rent must be paid in a timely and consistent manner — usually at the 1st of the month — and often, late payments are penalized as per the lease's terms. On the other hand, the property owner cannot unilaterally end the lease or change the conditions without the tenant's (the rent payer's) agreement.