Lease vs Rent: What's the Difference? | Comprehensive Guide

'Lease' and 'rent' both refer to the act of renting, but they have distinct differences in usage.

'Lease' typically signifies a long-term rental, where the right to use an asset (like a house, vehicle, or equipment) is transferred to the renter for a significant period. Lease terms can range from several months to several years. During this period, the lessee (renter) has the right to use the asset and is obligated to pay rent. Lease agreements usually specify the rental duration, payment method, and other conditions.

'Rent' often refers to short-term rental arrangements, where the right to use an asset is granted to the renter for a shorter duration. Rental periods can vary from days to months or even shorter. The renter pays rent for using the asset, but they don't have long-term usage rights. Rental agreements tend to be simpler, typically outlining rent and the rental period.

In essence, 'lease' is more commonly used for long-term rental arrangements, while 'rent' is preferred for short-term rentals.