Toronto Rental Services
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Most of the public, including tenants and landlords, don't know the exact difference between a rental agreement and lease. It looks unimportant to us, by knowing the difference between a rental agreement and lease we may deliver some relief from the complexion of how the tenancy is carried out.
ABOUT LEASE AGREEMENT
The lease will allow tenants to occupy the rental property for a specific time limit. Length of lease can be more than one year with option of renewal for another year. A lease can be only for six months, depending upon the need of tenant's and availability of landlords Rental Property. But sometimes lease comes with greater security deposits as long as renters pay the rent or abide by lease agreement terms and conditions by doing signature on it.
Once lease accepted and signed by both tenants and landlords, it cannot be changed, when both parties will agree to make some changes then it can be updated otherwise not single personality can have the lease.
A lease may also mean that renter's cannot leave the rental property with pending payments and due rent. If they do so, they break the lease and they will have to pay penalties contained within in the lease or in provincial tenancy laws. For example: a tenant and landlord will break the lease when they both agree, it is best if the agreement is written and signed by both parties, if one of the party either tenant or landlord breaks the lease, then another have right to use the laws and assign the new unit.
ABOUT RENTAL AGREEMENT
The rental agreement is used when landlords and tenants are agreeing to carry out for short term rental only. Rental agreements are generally for one month duration and should be renewed after completion of 30 days or 1 month. The major importance of rental agreement is that they can change frequently, a landlord or tenant may suggest for addition or revision for agreement for every month.
The rental agreement may not secure option for tenants because rent could be increased each month and landlords can ask to leave as soon as the agreement expires. But, it is beneficial for landlords, some of them are given below:
BENEFITS OF RENTAL AGREEMENT
Several tenants like travelers, students, etc. who don't know when to leave or not to commit for fixed period lease. This is also for low income families who have issues finding housing with fixed period lease.
2.Eviction is Easier
In fixed period lease it is difficult to recognize the tenants who create problems and destruction and to get off from homes for rent. But in Rental agreement you can easily make adjustments as you see fit and can easily cancel the Rental agreement within the duration.
With lease tenants pay for 12 month's rent and the amount cannot be raised. But in a month to month rental agreement, you can raise the rent as per your wish. From the start you charge more rent because tenants are paying month to month and are free to move anywhere where they want.
It become very beneficial when your rental property is near to college town, a vacation spot, or any other desirable location for peoples, it will gives you a better chance of financial succeeding with a month to month rental agreement
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