When it comes to renting a property, one of the most important documents you`ll encounter is the rental agreement or residential lease. Both terms are often used interchangeably, but they actually refer to two different legal documents.
A rental agreement, also known as a month-to-month rental agreement, is a type of lease that is typically shorter and less formal than a residential lease. It is intended to be a temporary arrangement between a landlord and tenant that can be renewed on a month-to-month basis.
A residential lease, on the other hand, is a more formal and legally binding agreement between a landlord and tenant. It is typically for a fixed term, such as six months or a year, and outlines the rights and responsibilities of both parties during that time.
So which one is right for you? Here are some key factors to consider:
Length of stay: If you`re only planning to rent a property for a few months or are unsure how long you`ll be staying, a rental agreement may be the better option. It offers more flexibility and allows you to end the agreement with relatively short notice.
Security and stability: If you`re looking for a more stable, long-term arrangement, a residential lease may be a better option. It provides more security for both the landlord and tenant, as it outlines the terms of the lease and provides legal protection for both parties.
Rent increases: With a rental agreement, rent can be increased at any time with notice, while a residential lease typically outlines any rent increases for the duration of the lease term.
Overall, the decision between a rental agreement and a residential lease will depend on your unique situation and needs. Take the time to carefully review and understand the terms of any agreement before signing, and don`t hesitate to seek legal advice if you have any questions or concerns.
