Difference Between Renting and Leasing
Renting vs Leasing
A lot of people still don’t own homes, and they either rent or lease the apartments or houses where they live. Renting and leasing may be synonymous, but there are several differences between the two.
“Renting” is defined as “the act of paying for the use of something” such as a car, a house, or an apartment. The terms and conditions for its payment and use are specified in a contract between the tenant and the landlord.
The contract in renting is usually a short-term one lasting for one month at the most but is renewable until such time that the landlord and the tenant agree to end the contract. The landlord may change the conditions of the contract provided he gives a written notice.
Since renting is on a short-term basis, tenants who do not like the house that they are renting can easily leave and find a more suitable place. Even if the place is not owned by the tenant, he is liable for it while he is living in it and must take care of the property.
The word “rent” comes from the Latin word “rendere” which means “to render.” It came into the English language through the Old French word “rente” which means “payment for use of property.”
“Leasing,” on the other hand, is defined as the act of conveying property to a person for a specified period in exchange for a certain amount of money. Like renting, a contract is made between the lessor and the lessee.
The lessee can stay in the property until the contract ends, and the lessor cannot change the terms of the contract until then. Leasing is a long-term agreement with a minimum of six months, and it has fixed arrangements. It can be cancelled, but the lessee must have to pay a cancellation fee.
After the lease on the property expires, it is not automatically renewed, and the lessee who decides to stay will have to rent it and will be subject to the rental agreement. There are instances wherein the property is offered on a rent-to-own basis, and the property will be fully paid for at the end of the lease agreement.
The word “lease” comes from the Latin word “laxare” which means “loosen, or make wide.” Also from the Old French “laissier” which means “to let” or “leave.”
1. Renting is the act of paying for the use of a car, an apartment, or a house while leasing is letting a person live on a property in exchange for money.
2. Renting is short-term, usually for only a month, while leasing has a longer term, usually for six months or more.
3. The contract in renting is automatically renewed while it is not so with leasing.
4. The landlord can change the terms of the contract in a rented property while a lessor cannot change the terms of the contract until it ends.
5. Some leased properties are rent-to-own while rented properties are just for rent.
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