Although the two words, Lease and Rent, are often used interchangeably, their meanings are not the same. There may be some similarities between the two, however, both are individually governed under different laws and regulations.
Rent v/s Lease: Meaning and Chief Differences
Parties
When you enter into a lease contract, the parties involved are the lessor and lessee. Lessor, meaning the owner of the property, leases his valuable asset to the lessee. Over here, the lessee uses the lessor’s land, building, or any other property and offers value for the same.
In the case of a rent agreement, a landlord and tenant are involved. The person who owns and rents a house or an apartment is called the landlord. You would have heard in movies and series where people often mention landlords when living in an apartment. Yes! These guys are the owners of the house and let people stay in their vacant places. In return, landlords receive a fixed amount, either monthly or based on the contract from the tenant.
Duration
The owner of the land or premise generally gets into a lease agreement if and only if he/she wishes to extend the lease for a long duration. As a lessor, you must be ready to commit a minimum of a few years up until eternity when signing the agreement.
Rent comparatively exists for a shorter period of time. You can quickly get into a rent agreement with the landlord and start living in an apartment or home in no time.
Payment
When you look at a lease agreement, the payment would be monthly. So the lessor will receive a lump sum amount at the end of every month from the lessee. As for the renting agreements, it totally depends on the license drawn by both the parties. Generally, you pay rent either every month, quarterly, or yearly.
Termination of Agreement
Lease agreements are not easy to terminate as they are registered under the law. When it comes to renting, the license is relatively easy to dismiss.
Alterations
No change is entertained when we talk about lease contracts and agreements. As in the case of rent agreements, yes, changes are possible. You can alter the terms of a license agreement and make necessary modifications.
Decision Making
When should you choose to lease a property?
Leasing a land or property is common in the commercial real estate sector. The contract drawn between both parties is formal and complies with the governmental rules and regulations. Hence, leasing would be a safe and secure choice if you wish to list your premise for a commercial purpose.
When should you choose to rent a property?
Clearly, the opposite of leasing, renting would be an ideal choice for residential purposes. Rent is more common in the residential real estate sector and always includes apartments, flats, and homes for people to live in.
Ultimately, the choice you make depends on what you are looking for. Whether you are a tenant or landlord, lessor or lessee, in the end, you need to know both - leasing and renting - have definite pros and cons.
If you live in and around the areas of Gurgaon and Delhi NCR, you can always take the help of ILD. So what’s ILD?
International Land Developers is a real estate agency offering properties and premises that will be a boon in the future. We make leasing in Gurgaon easy and secure for you to have superior-quality land and area to work around. ILD holds years of experience in the real estate industry, allowing us to offer you leverage in the market. We a presence in developing commercial, residential, industrial, and retail destinations. Have an office space in Gurgaon by getting in touch with ILD’s finest designers.
ILD Approach
Identify locations that show potential boom and profit
ILD focuses on introducing you to only those areas and properties that show potential growth and profit in the coming years.
Balance of form and function in all the designs
While the architect might be exceptional of a place, it is of no use if the design is not practical enough. ILD makes sure you receive both form and function in the designs we create.
Rent a commercial shop in Gurgaon easily through International Land Developers. Get a quote from us today!