Rental Agreements and Leases: Whats the Difference?
Many potential tenants do not realize that there is a legal difference between a rental agreement and a lease. In short, a rental agreement is a document that provides for a short period of tenancy (often one month). The tenancy agreement is automatically renewed at the end of the period unless either the tenant or the landlord provides written notice to the other party that it will not be renewed. This is called a “month-to-month” rental. In addition to opting not to renew a rental agreement a landlord may also change the terms of the agreement after providing notice to the tenant. This right is subject to certain limitations, such as rent control laws and potentially other laws depending upon the state in which the property is located. A lease, on the other hand, usually binds the parties to a longer period of time, such as six months or a year. The lease is considered valid over that period so long as the tenant continues to pay rent and abides by the other requirements of the lease
