What is Lease?
The lease is a commitment between the two parties in which one party agrees to give land, property, benefits, etc to the other party for a specific period of time. Payment gives in a periodic way like quarterly, half yearly, annually. When lease ceases or expire it does not automatically renew. The lease is the long-term responsibility. It is the relationship between a landlord and a tenant. This agreement last for 33 years, 66 years, 99 years. Etc. The lease agreement gives the tenant an exclusionary interest in a property.
Examples of leasing companies: Asian leasing corporation, Askari leasing limited, Orix leasing Pakistan limited. Etc.
Difference Between Lease And Rent In Pakistan
What is rent?
Rent is the agreement between tenant and landlord in which regular payment is given by the tenant to the landlord for the use of property, land, flat, car, home etc. Rental agreement minimum last for thirty days and this agreement is automatically extended at the end of the month. This agreement will be terminated until the tenant informs the landlord or give legal notice at least a month before. Rent is either long term or short term commitment. The rental agreement gives for the tenancy of short period of time.
Key Differences between Lease and Rent:
Following are the major points from which you can easily distinguish between Lease and Rent.
|The lease is the commitment between two parties||rent is the agreement between tenant and landlord|
|The lease is for 33 years or 66 years or 99 years||rent is for minimum one month|
|In lease payment is given in a periodic way like quarterly, half yearly, annually||In rent payment is given monthly.|
|The lease is an agreement regarding land or property or benefits||Rent is the agreement regarding the property.|
|When the lease expires it does not renew automatically||Rental agreement expires it can be renewed automatically.|
|Yearly, half-yearly, quarterly payment is given by the tenant to the landlord in the lease.||Regular payment is given by the tenant to the landlord in rent|
|Length of the lease and the amount of monthly rent are recorded and cannot change||Length of the lease and the amount of monthly rent are recorded and cannot change|
|The agreement ensures that landlord cannot forcefully raise the rent||tenant cannot leave the property without informing the landlord.|
|The rental agreement is not a long-term contract||the lease is a long-term contract|
|However, either the tenant or the landlord can alter the terms of the agreement in the case of rental agreement at the end of the month.||After completion of the agreement, the landlord has the option to make some amendments in the agreements.|
|The lease is the long-term agreement.|
|The rent is the short-term agreement.|