When stepping into the world of adulting, one of the first things you may do is get an apartment. It is helpful to know the difference between leasing an apartment and renting an apartment so you know what you are getting yourself into. Both are similar but there are differences.
Renting
Renting an apartment means that you will more likely stay for a short term. It is a month to month agreement meaning that your rental agreement can change each month. For renting, the cost can vary from month to month which is something to be careful of. Just because you start with a certain rent amount does not mean that it can and will not change in the future. This can be a written or verbal agreement.
Leasing
Leasing an apartment is more likely for a long term, such as 6 months to a year. They are set with a fixed cost. They are also a fixed agreement which means that the contract will provide how long you are staying and how much you are paying. This is a written agreement.
Is it better to rent or to lease?
This depends on what is better for you and your situation but here are some questions to ask yourself when trying to make the decision.
-
- How long do I plan on staying on the property? Short term or long term?
-
- Can I afford to rent even if the rent price changes or am I better off with the stability of leasing?
-
- What other costs do I need to consider which could affect me not having money leftover in case rent increases?
Credits:
Key Icon in Photo: <a href=”https://www.flaticon.com/free-icons/sell” title=”sell icons”>Sell icons created by itim2101 – Flaticon</a>
