Steps to determine whether it is better to rent or lease

Written By Steps To Faculty Published June 14th, 2010

Making the choice between renting and leasing simply takes forethought and self knowledge. The basis for renting or leasing is also an essential part of the final decision. Each of them stands because of some features making it different from the other. What else would one wish to look at when considering the option of renting versus leasing?

Step 1 Know the basic difference

A lease is a contract is made whereby the property will be conveyed to you for a specified period. In other words, the property becomes yours for such specified period without any interference. You can use it for whatever you like. On the other hand the contract in the rent gives you the right to temporarily use the property which is owned by another person. Such difference brings in other qualities of a rent and a lease.

Step 2 Consider flexibility

If you are looking for flexibility where you can easily change residence without breaking the agreement, the temporary contract in rent will be better than that in the lease. Rent is more flexible than lease.

Step 3 Lease

If you want to settle your housing needs for a long period of time with no regular interference or monthly payment for the house, then a lease will be best for you. That is because you pay once with the leasing terms, but will renew the contract many times if you rent. In terms of mode of agreement, a lease is always written while a rent could either be written or oral. Written agreements are more secure. Stability for both the landlord and tenant is guaranteed in a lease and not as much in a rent.

Step 4 Rent

Are you going to have to change the terms of agreement prematurely? With the predetermined agreement in both cases; the terms of agreement in a lease are not easily changed as in rent.

Remember, the decision to rent or lease is up to you, but you need to ensure all the fine details are sorted out before proceeding to sign the agreement.


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