Leasing verses renting
Leasing verses Renting
Lease Agreement:
Both Landlord and Tenant are bound by the agreed upon duration of the stay and monthly rent required.
Benefits:
Landlord cannot raise the rent or evict the tenant during the lease term unless the renter fails to comply with the terms of the agreement.
Risks:
Tenant is obligated to pay the amount of the rent for the number of months specified in the lease regardless if they move out of the property prior to the end of the term.
A Month to Month Rental Agreement:
Both Landlord and Tenant are bound by the rent amount agreed upon for one month at a time.
Benefits:
Tenant or Landlord can give 30 days' notice that the tenant will be moving out before the next month's rent is due. Once the home is vacated, there is no longer an obligation to each other.
Risks:
Landlord can raise the rent or evict the tenant with 30 days notice and the tenant must comply or move before that time.