{"id":369243,"date":"2016-04-04T10:47:19","date_gmt":"2016-04-04T15:47:19","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/realestate\/landlord-tenant-law\/rental-lease-agreements.html"},"modified":"2026-09-29T16:58:00","modified_gmt":"2026-09-29T21:58:00","slug":"rental-lease-agreements","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/rental-lease-agreements.html","title":{"rendered":"Rental Agreements vs. Lease Agreements"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-28f84493 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Rental Agreements vs. Lease Agreements<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/melissa-mccall-j-d\/\">Melissa McCall, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/katrina-wilson-esq\/\">Katrina Wilson, Esq.<\/a>\n                | Last updated\n        <time>\n                            September 29, 2026\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n<div class=\"fl-key-takeaways fl-mb30\" data-testid=\"fl-key-takeaways\">\n    <div class=\"fl-card-content\">\n        <div class=\"fl-card-body fl-card-bg-teal fl-flex fl-flex-column\">\n                            <h2 class=\"fl-card-title fl-h2 fl-no-margin\">Key Takeaways<\/h2>\n                        <ul>\n<li>Rental agreements usually cover short\u2011term, month\u2011to\u2011month arrangements, while lease agreements set longer terms and more detailed obligations.<\/li>\n<li>Both types outline key provisions like rent, deposits, maintenance, and notice requirements, and written contracts offer clearer protection than oral ones.<\/li>\n<li>Commercial leases add more complexity, so reviewing the lease structure and understanding common provisions helps landlords and tenants manage their responsibilities.<\/li>\n<\/ul>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n<div class=\"fl-rich-text\">\n<p>People often use the terms &#8220;rental agreement&#8221; and &#8220;lease agreement&#8221; interchangeably. But while both terms relate to real estate leases, they are not synonymous. Most rental agreements cover short-term tenancies, while lease agreements cover longer tenancies. One commonality is that both are rental contracts that govern the entire rental relationship.<\/p>\n<p>This article provides an overview of rental and lease agreements. You&#8217;ll also find a comparison of residential and commercial leases. The information below is a good primer, but consulting a <a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">local real estate attorney<\/a> is even better. Whether you&#8217;re preparing to rent out a property or move into one, getting legal help with the agreement can prevent confusion about payments, responsibilities, and renewal options.\u00a0<\/p>\n<h2>What Is the Difference Between a Rental Agreement and a Lease Agreement?<\/h2>\n<p>Many rental agreements cover short-term tenancies, such as <a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/what-is-the-difference-between-a-month-by-month-lease-and-a-fixed.html\">month-to-month ones<\/a>. In a month-to-month tenancy, the tenancy renews roughly every 30 days.<\/p>\n<p>Lease agreements, by contrast, cover longer tenancies, often starting at one year. Lease agreements break down into two categories:<\/p>\n<ul>\n<li>Residential leases<\/li>\n<li>Commercial leases<\/li>\n<\/ul>\n<p>Residential leases, as the name implies, cover residential housing. <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/commercial-lease-agreement-overview.html\">Commercial leases<\/a> cover commercial real estate and commercial spaces. The type of lease offered will depend on the type of property available for rent. This also applies to the terms of the lease. The terms offered will depend on the type of lease offered.<\/p>\n<h2>Lease Provisions: Residential vs. Commercial<\/h2>\n<p>Rental and lease agreements share a few common lease provisions. Although many courts will uphold oral agreements, written agreements offer more protection. Strong lease agreements can be your guide for <a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/landlord-tenant-disputes.html\">resolving potential problems<\/a>. For example, your lease agreement should guide you on how to escalate a maintenance issue.<\/p>\n<h3>What Residential and Commercial Leases Have in Common<\/h3>\n<p>Some lease clauses, including the names of all parties and the rental property address, are relatively standard. However, other lease clauses may depend on the limits of landlord-tenant laws. <a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/the-top-ten-lease-terms-to-you-should-have-when-renting.html\">Standard residential lease clauses<\/a> include but are not limited to:<\/p>\n<ul>\n<li>Names of all parties to the lease<\/li>\n<li>Description of the rental property<\/li>\n<li>Length (term) of the lease<\/li>\n<li>Amount of monthly rent (rental rate)<\/li>\n<li>Day of the month by which the tenant should make rent payments<\/li>\n<li>Late fees (if applicable)<\/li>\n<li>Pet policy<\/li>\n<li>Common area maintenance<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/security-deposits.html\">Security deposit<\/a><\/li>\n<\/ul>\n<p>Common terms for a <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/factors-to-consider-lease-or-purchase-of-a-facility.html\">commercial lease agreemen<\/a>t differ significantly from those for a residential lease agreement.<\/p>\n<h3>Commercial Lease Agreements<\/h3>\n<p>Most prospective commercial tenants negotiate their lease agreements. Commercial lease agreements can cover different types of commercial spaces, including <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/how-to-rent-business-space-the-top-ten-things-to-consider.html\">retail space and office space<\/a>. Many prospective tenants need space to meet their business needs and budgets.<\/p>\n<p>Commercial real estate agreements often <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/commercial-property-rentals.html\">involve more negotiation<\/a> due to their complexity. Despite this, most commercial leases <span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">share a few\u00a0common\u00a0<\/span>provisions. These include, but are not limited to:<\/p>\n<ul>\n<li><b>Gross lease:<\/b> In this type of lease, the tenant <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/types-of-leases.html#:~:text=commercial%20real%20estate.-,Gross%20Leases,-The%20tenant%20pays\">pays the entire base rent<\/a>, while the property owner pays the operating expenses.<\/li>\n<li><b>Net lease:<\/b> The commercial tenant pays the base monthly rent, plus property taxes and maintenance costs.<\/li>\n<li><b>Double net lease: <\/b>The tenant must pay the base rent plus two of the following three expenses: taxes (property taxes and real estate taxes), insurance, or maintenance costs.<\/li>\n<li><b>Triple net lease: <\/b>The landlord passes on their operating expenses to the lessee. The tenant pays base rent plus taxes, insurance, and operating costs.<\/li>\n<li><b>Consumer price index:<\/b> In some leases, the landlord or property management will tie annual base rent increases to the consumer price index.<\/li>\n<li><b>Occupancy limitations: <\/b>Property management may impose occupancy limits depending on local zoning to comply with zoning and housing codes.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/types-of-leases.html\"> Base rent<\/a> is often tied to the total amount of square footage. These are just a few lease terms you may find in a commercial lease agreement.<\/p>\n<hr \/>\n<p>Given the complexity of these agreements, any business owner contemplating a commercial lease should get an attorney&#8217;s advice. Almost all terms in a commercial lease are negotiable, and a <a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">local attorney<\/a> can spot clauses that may cause you issues (and cost you money) later.<\/p>\n<hr \/>\n<h2>Unenforceable Lease Provisions<\/h2>\n<p>Some lease agreements contain unenforceable lease provisions. For example, no court will enforce a lease provision that violates <a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/your-rights-as-a-tenant.html\">fair housing laws<\/a>. A few examples of unenforceable provisions:<\/p>\n<ul>\n<li>Lease clauses allowing the landlord to enter the property at any time without warning<\/li>\n<li>Lease clauses stating that the tenant will pay for common area repairs<\/li>\n<li>Lease clauses in which the tenant agrees to give up the implied warranty of habitability<\/li>\n<\/ul>\n<h2>Ending a Lease<\/h2>\n<p>Real estate leases should clearly explain how to end a lease. Many residential leases provide a specific window to renew or end your rental or lease agreement. Many tenants, both commercial and residential, either agree to extend the lease or part ways. But <a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/state-by-state-chart-of-landlord-and-tenant-laws.html\">state laws<\/a> often provide some guidelines.<\/p>\n<p>In some jurisdictions, if the tenant continues to pay rent after the lease term ends and the landlord accepts it, the lease automatically converts to a month-to-month lease. These renters are called \u201c<a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/landlord-tenant-dictionary.html\">holdover tenants<\/a>&#8221; because they have stayed beyond the end of the lease.<\/p>\n<p>After you have moved out at the end of the lease, your landlord will inspect the rental property before returning your security deposit. Landlords can deduct from the security deposit only for damages beyond normal wear and tear or cleaning.<\/p>\n<p>The landlord should <a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/rent-and-security-deposit-tips.html\">keep records of any deductions<\/a> and send a copy of the deductions to the former tenant. The landlord must return any remaining amount to the former tenant within the time frame set forth by local law.<\/p>\n<h2>Get Legal Help With a Rental or Lease Agreement<\/h2>\n<p>Rental and lease agreements are legally binding contracts, and breaking a contract comes with serious legal consequences. Whether you are a property owner or a prospective tenant, getting a legal professional&#8217;s eyes on your rental or lease agreement can be incredibly beneficial. An experienced attorney can advise you on unlawful lease clauses, how to negotiate a commercial lease, or any lease terms that could cause issues later.<\/p>\n<div class=\"fl-rich-text\">\n<p>FindLaw\u2019s directory of\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/landlord-tenant\/?fli=dcta\" target=\"_blank\" rel=\"noopener\"><span data-term-id=\"60135480\">landlord<\/span>\u2013<span data-term-id=\"60135479\">tenant<\/span>\u00a0lawyers<\/a> can connect you with qualified legal help near you. Because state and local laws are relevant, your attorney should be licensed in the state where you live. Enter your city or ZIP code for a list of legal professionals in your area. Your search results will also show important details about prospective attorneys, like ratings, areas of practice, and whether they offer free consultations.<\/p>\n<\/div>\n<\/div>\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    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  class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"fl-section-sidebar\"><div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Legal help is beneficial for all types of contracts, including leases and rental agreements\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Some tenant or neighbor disputes may need the help of local police\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Complex real estate issues (such as construction defects or illegal landlord actions) may need an attorney&#8217;s support\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <p>Buying or selling a home, facing foreclosure, or landlord-tenant issues can benefit from legal expertise. An attorney can offer tailored advice and help prevent common mistakes.<\/p>\n\n            <\/div>\n                            <div class=\"fl-editors-summary-content-link fl-flex\" data-testid=\"fl-editors-summary-content-link\">\n                <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                <p class=\"find-attorney\"><a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/#USER_GEO\/?fli=esum:FL43\" target=\"_blank\" rel=\"noopener\">Find a local attorney<\/a><\/p>\n\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<div class=\"email-subscription\">\n    <div class=\"email-subscription-header\">\n        <div class=\"email-subscription-header-content\">\n            <h3 class=\"fl-callout-sm fl-no-margin\">Stay Up-to-Date With How the Law Affects Your Life<\/h3>\n        <\/div>\n        <div class=\"email-subscription-header-image fl-flex fl-items-end\">\n            <img decoding=\"async\"\n                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