When it comes to leasing or renting an apartment, people are often stuck between these two choices. Both of them may seem similar to each other, since they basically provide monthly instalments for you to pay for your housing. But which one is the best? How do they differ? Before we try to find an answer to both of these questions, let’s take a quick look at both these options.
Any commercial leasing can be described as a contractual arrangement, whereby the lessee has to pay the lessor for the use of an asset over a certain period of time. A lease can have any duration, but is normally set for either a six or twelve-month period most of the time. Since a lease is, in fact, a contractual obligation between two parties, one party cannot single-handedly change any of the terms or conditions agreed upon without the consent and agreement of the other party. This simply means that the tenant is forced to pay the rent for the duration of the lease, while the landowner cannot force the tenant to leave until the lease expires.
Renting in rental guide can be defined as an agreement by two parties, namely the tenant and landlord, where the tenant agrees to pay the landlord a monthly fee for the use of his properties, land or any other asset during that time period. A rental agreement is normally decided on a month by month basis, with it being renewed at the end of each month. Unlike a lease, both parties are only in agreement, which means that any of the two parties can decide to break the agreement at any time they deem necessary. A landlord can, therefore, decide to change any of the terms, such as the rental price and other conditions, with a prior written notice. In the same way, a tenant can vacate the place at any time he or she wishes to do it, and is not forced to wait till the agreement expires at the end of the month.
Now let’s come to the answers to the questions we raised previously. As we can see, there is no straightforward answer to indicate which one is clearly the best option. Both renting and leasing have their own advantages and disadvantages, which are the factors you need to look at carefully before making a decision. As a general rule, rental agreements are ideal for those who want more freedom with their choices, such as when to move in or move out. Nevertheless, you also need to face any unexpected situations arising due to the landlord changing terms and conditions. On the other hand, a lease will provide a better stability for those who want to stay long term. Since a landlord cannot force you to leave or vacate until the lease expires, you won’t have to worry too much about being left out. While such a situation is good for you, remember that you are also bound by the same contract, which prevents you from backing out with commercial leasing hong kong until the lease expires.