Rent or Lease?
October 05, 2023
DD Planet
Generally, leasing is chosen as a long-term solution for office or commercial purposes and renting for residential purposes. However, both leasing and renting can be chosen in each case and have their own advantages and disadvantages.
Here are the tips and advice to help you select the suitable mode of tenancy:
- Since leasing is for long-term, it gives you a better certainty as compared to renting if you’re looking for a long-term solution, for renting comes with a one month notice clause and for a duration of about one year.
- Renting gives you flexibility. The one-month notice clause gives you freedom to exit the contract at any point of time and you’ll not have to live with your choices for long if you feel you made a mistake or you get located somewhere else in your work in future.
- Leasing is generally more costly than renting. The registration cost further adds the cost.
- Though rent escalation is common in a renting contract, leasing generally has a fixed amount for a certain duration as specified in the lease contract. On the other hand, if the rental market falls, you end up losing in leasing too.
- Not many owners will be ready to give their property on lease and that limits the availability. The drawback of renting in terms of a lesser duration contract practically doesn’t hold much ground since depending on the relationship between the tenant and the owner, even renting becomes a long-term solution.
- The flexibility to use the accommodation the way you want is a way more in a lease than in renting.
- The losses in the case of leasing if the contract is terminated earlier are far more than in renting.
- Since the renting contract is not for long-term, the terms can be renegotiated at the end of a year as well. This can be an advantage too in certain cases.
