Rental Agreement vs. Lease

In the previous article I mentioned a “rental agreement” and a “lease,” what’s the difference between the two? The difference is with the length of the agreement. If the period of rental is “short,” often less than thirty days, then you would use a written rental agreement. If the period is longer, then it is considered a lease. The two are structured slightly differently (rental agreements automatically renew, leases do not) but that’s the basic difference from a practical perspective.

Why would this matter? In the case of month-to-month rentals, the landlord can change the terms of the contract with written notice every month that the agreement is renewed (generally states require 30 days of written notice, but it can be shorter depending on how often rent is paid or what the two parties agree to).

The lease is much different because of its length. With a lease and a set rental period of six months or a year, the landlord can’t change the terms and a tenant can’t terminate it until the lease expires. At the end of the rental period, the lease will expire unless renegotiated and renewed. Unlike rental agreements, there is no automatic renewal.