You might be surprised to know this. However, renting and leasing aren’t the same thing. Usually, people interchange these two terms. This is particularly true when it comes to apartments.
However, that is not the proper way to call it. Whenever you rent a house, it is different than when you are leasing it.
Choosing whether to rent or lease an apartment will vary on several factors.
To clear up the confusion, we’re going to share with you the difference between renting and leasing a studio apartment Toronto property.
Difference Between the Two Terms
Time is the simplest way to tell if you are dealing with a rental or lease situation. Oftentimes, a lease is a contract signed for a longer period of time compared to a rental agreement.
Whenever you sign a lease for a property, it is typically a 1-year contract. Whenever you rent, you are usually looking at more of a monthly agreement. Technically, each period shouldn’t be longer than 1 month.
The reason why it’s confusing is that the features are the same, even though time is a major differentiator between rent and lease.
Both a rental and lease agreement can include the following when it comes to property:
- Rules for usage
- Rental payments each month
- A security deposit
The truth is that everything between a rental and lease agreement might look similar on paper. However, the period of time the contract is for will be different.
Should You Rent?
Renting offers you all the flexibility required to make a quick change to your life without huge financial consequences. A rental contract only means you commit for around 30 days. It is ideal if you are in a situation where you’ll only be employed for the short term.
It is best if you have simply moved to a new area and you aren’t sure if you want to settle down in that place.
Furthermore, renting also offers you an automatic escape route if something in your life changes suddenly. This includes:
- Need to upsize or downsize to accommodate your family
- Relocating for work
- Moving in with your partner
All of these cases can take you away from your current living situation at a time.
Should You Lease?
There are a couple of benefits you’ll get if you lease property instead of renting it. This is particularly true if you are certain that you won’t be moving to a new city soon. It is a more secure way to keep your apartment for a long period.
Usually, leases are for at least 12 months. Of course, you will get stability with that longer-term commitment. Rent cannot often increase within the terms of a lease. Thus, you can personalize your budget.
Furthermore, you also have time to build a relationship with the landlord. This will help make it easier for you to renew your lease if you want to stay longer than a year.
If you choose to lease a property, you can settle in and move into the apartment and know that you will stay for a longer period.