Property Knowledge: What is the difference between lease and rent, know which property is beneficial for you...
In the context of property, you must have heard about leases and rent. Both are types of rental but still, there is a big difference between them. The most superficial difference is that a lease is given to those properties whose use is required for a long time. Rental properties may or may not be for long-term use. Therefore the rent agreement is usually of short duration. It has to be renewed again after 11 months. At the same time, the lease can be for many years.
The lease can be taken for a maximum period of 99 years in one go. After this, it can be extended further for 99 years. Lease is also called patta. The person taking the lease has to maintain the property given on the lease. However, sometimes it also depends on the terms of the lease as to who will maintain the property. The maintenance of the rental property is in the hands of the landlord. For this, they are given maintenance.
And what is the difference?
No changes of any kind can be made in the lease until it expires. The person taking the lease becomes its owner till the term of the lease. If the lease is not registered, it becomes invalid within 12 months. On the other hand, if we talk about rental property, its owner remains the landlord. The landlord can amend the rental agreement at any time. Even if registration is not done, the rental agreement is still legally valid. At the end of the lease, the lessee (who has taken the lease) may receive an offer to buy the property. He can buy the property by paying the remaining money. Nothing like this happens in rental properties.
What better
If you want to buy a residential house or apartment and want to pay rent every month, then it would be better for you to get a rent agreement. In this, you do not have to worry about maintenance, etc. At the same time, if we talk about buying commercial property and that too for a long time, then you should go for a lease. In such a situation, you avoid the hassle of renewing the contract again and again and can concentrate more on your work. A lump sum amount is paid in the lease, so it will be important to see whether you can afford to take the lease.
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