What's The difference?
By Doris Salinas-Sanchez, Broker/Owner
Sanchez Salinas & Associates, LLC DBA
Realty Executives of Eagle Pass
Realty Executives Del Rio
Before Renting or Leasing a property is important for you to know the difference between these two agreements. Most people think that "lease" and "rent" mean the same thing, these terms are often used interchangeably, but they are not the same... Here's the difference for your information according to AllBusiness Editors...
A lease agreement has a set term, such a year or six months term, during which the tenant agrees to rent the property during that time (known as the duration of the lease), the tenant and the landlord must adhere to the agreement. For example, tenants agree to make monthly rent payments and follow the other obligations in the lease.
Neither party can change any terms of the agreement until the lease expires, unless both parties agree to the change with a proper written agreement. A tenant can’t vacate the property without breaking their lease, in which case they can be held liable for the rest of the rent due under the lease, or can be required to find someone else to take over the lease.
Rental agreements are month to month, with no long-term requirements. At the end of each 30-day period, both you and your tenant are free to change the rental agreement (subject to any rent control laws).
These changes may include raising the rent, changing the terms of the initial agreement, or asking the tenant to vacate the property. However, in most states, both landlord and tenant are required to give 30 days’ notice before any changes can be made. If your state doesn’t require notice, you can change any part of the rental agreement at your discretion.
Rental agreements are useful if you’re having a problem attracting new tenants, or if your property is in an area that caters to students or professionals who move around often. These tenants appreciate the freedom a month-to-month agreement provides, so offering a rental agreement can give you an advantage over landlords who insist on long-term leases.
A rental agreement typically renews automatically after each 30-day period has elapsed. There’s no need to give notice about this automatic renewal, as long as neither you nor your tenant has stated that the tenant will vacate the premises.
Before you rent out your property, be sure to take into account the differences between a lease and a rental agreement so you can make the best choice for your situation.
If you need a space for Rent or Lease or if you are a Landlord in the State of Texas and in our area please contact a licensed real estate professional such as an Executive with Realty Executives of Eagle Pass and or Realty Executives Del Rio branch for more details on how we can assist you with your real estate needs and find out about the new adopted forms regarding leases in Texas.
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