Difference Between Lease And Rent

Difference Between Lease And Rent

The main dissimilarities or difference between lease and rent can be pointed out as follows:

1. Definition

Lease: Legal agreement between the owner and user of  the property (land, building, machinery, plant etc) that covers the rent and control of the property.

Rent: Agreement between the owner and user to use asset for the limited period of time

2. Period

Lease: For long period of time

Rent: Only for limited period of time

3. Mode Of Payment

Lease: Lease installments are paid monthly

Rent: Rent can be paid monthly, quarterly, half-yearly or yearly

4. Maintenance Of Asset

Lease: Lesser or user of the asset is responsible for the maintenance

Rent: User of the asset or tenant is responsible

5. Renew Of Contract

Lease: Lease contract is not renewed

Rent: It is renewed automatically

6. Modification Of Contract

Lease: Lease contract cannot be changed or modified once it is signed

Rent: It can be modified or changed as per the requirement

   

Also Read: 

Difference Between Hire Purchase And Installment

7. Parties Involved

Lease: Owner of the asset (lessor) and the user of the asset (lessee)

Rent: Owner of the property (landlord) and the user (tenant)

8. Complexity

Lease: Lease contract is more complex than rent

Rent: It is simple form of contract

Lease Vs Rent (Comparison Chart)

Basis For Difference	Lease	Rent
Introduction	Agreement about the rent and control of asset between owner and user	Agreement to use asset for limited period of time
Time Period	Long	Short
Payment Mode	Monthly	Monthly, quarterly, half yearly or yearly
Maintenance By	User	User
Renew Of Contract	No	Yes
Contract Modification	Not possible	Possible
Parties Involved	Owner(lesser) and user (lessee)	Owner(landlord) and user (tenant)
Complexity	More	Less

I hope this post is helpful to understand the difference between lease and rent and to make comparison between them.