Rental or Leasing? Which will be better?

Both are lucrative options. And that leads to all the confusions!

So what’s the difference?

Rent or Lease?

LEASE Lease is a contractual

agreement, asking one to pay another, for using his/her

property for a stipulated time.

RENT Rent is the monthly

charge which one pays the original owner of a

property for using that property.

Example

If you takes residential flats in Pune for lease, you are bound by a contract, which instructs you to pay your landlord for using his house for as long as the time mentioned in the contract is valid, whether you stay there or not.

On the other hand, if you take residential flats for rent in Pune, then you have to pay a monthly charge for using that land/house to your landlord for as long as you wish to stay there. You are however liable to pay a fine if you fail to pay the rent on time, which is usually by the first week of every month.

Advantages and Disadvantages

The advantages of rent over lease according to property.sulekha.com are:

You need to pay rent for the duration for which you wish to stay in the rented property. You do not have to pay once you stop staying there.

In a leased property, if you wish to leave the property before the agreed time frame, your money gets wasted because you pay the amount for your whole stay during that time frame beforehand.

Advantages of Leasing:

If you give up on the leased property before the stipulated time ends, you can appoint a sub-lessee to stay in that property by following the same conditions according to the contract, till the lease is valid.

The Bottom line:

Thus, it is recommended to take a house on rent than lease, as you have your own freedom and not bounded by any contracted agreement with the landlord.