When you rent out a property, you will need to decide if you wish to offer your tenants a lease or a rental agreement. Although these terms are often used interchangeably, they are not the same.

A lease for a rental property has a finite term, such as six months or a year, for which a tenant will agree to rent the property. During this time period, also known as the duration of the lease, the tenant and the landlord are bound to uphold the terms of the written agreement.

Having a lease means that neither party may change any terms of the agreement until the lease expires, unless both parties agree to the change. For example, if the current amount of rent is $500 per month, you may not increase this amount until the lease expires.

Under a lease, tenants are obligated to make monthly rent payments as agreed upon, as well as follow any code of conduct or other stipulations in the lease while it's in effect. It also means that a tenant may not vacate the property without breaking their lease. In some cases, the tenant may be held liable for the remaining amount of rent due under the lease, or they may be required to find another person to fulfill their end of the lease.