Often the other option we try that purchasing a home is renting or leasing real estates. If you are new to the real estate industry, the terms renting and leasing may be confusing for you; this article will inform you about the differences between leasing and renting.
When you are renting real estates, your house renting contract will allow you the authority of establishing residence for a short duration. In most cases these short term rental agreements is of 6 months or even less than that. Renting certain real estate properties may also require signing agreements on a monthly basis. Due to this reason, often people prefer to go for leases instead of renting a house. The rental agreements can be renewed once the previous agreement period expires; this means usually these agreements get renewed in shorter frequencies. The owner of the rented house i.e. your landlord is the person deciding whether there will be any adjustment with the previous rent, or there will be a non-renew. Other than these, the rental agreements also include mention of a particular time period within which the landlord must give you a forewarning regarding increasing rents, or vacating the house; it is mostly limited to a period of 30 days.
Now let us discuss the basics of leasing houses. Unlike the rental agreements, the lease agreements will come with significant financial advantages. Lease agreements will allow you to occupy a property for more than 6 months. Throughout this lease period you will have to pay the same rental fee. Other than that, besides the owner, the tenant will also have the right of terminating lease agreements. Without serious violations of the clauses mentioned in the lease agreement, the landlord doesn’t ask his tenant for vacating the house before the lease agreement period is over.
The above comparative discussion between leasing and renting shows that leasing is a better option for the tenants.