Difference between lease and rental contract: explanations

When renting real estate, we often hear about leasehold Or of rental contract. While these two terms are generally used synonymously, there are a few differences in use to know. In this article, we take stock of what distinguishes a leasehold Of a rental contract, the types of existing leases, the obligations to be respected, and the situations in which one or the other may be preferred.

‍

Lease and rental contract: what does the law say?

Before getting into the practical details, it is essential to fully understand what these two concepts mean from a legal point of view.

‍

The rental lease, a supervised contract

One leasehold Is a rental contract signed between an owner (the lessor) and a tenant. It engages the owner to provide housing in exchange for Payment of rent. This contract defines rights and obligations of each part, the duration of the rental, as well as the cancellation terms.

‍

The rental contract, a more general concept

The term rental contract is actually a synonym for leasehold. In French law, the two terms refer to The same document : one rental contract. However, in common usage, the word “rental contract” is sometimes used to refer to short term rentals, more flexible or casual (for example, a seasonal rental).

‍

What are the differences between lease and rental contract?

Although leasehold and rental contract They have the same legal value, some nuances exist in their use.

‍

A difference in use, no legal definition

In practice, we are talking about leasehold When the contract is established for a fixed period, with fixed conditions (e.g.: 1 year for a furnished rental, 3 years for an empty rental). The rental contract, for its part, is a term sometimes used to refer to short term rentals or renewable month by month (e.g.: vacation rentals or vacationers).

‍

‍

Lease term vs rental contract

One Classic lease engages the tenant for a minimum duration (1 year, 3 years or 6 years depending on the case), with the possibility of Tacit renewal. On the other hand, a short term rental agreement can be established for a few weeks or a few months, without automatic renewal, depending on the nature of the rental.

‍

What are the types of leases for rent?

There are several types of lease depending on the nature of the home, its length of occupancy and the status of the tenant.

‍

The Classic lease (empty or furnished)

The Empty lease is concluded for Minimum 3 years (or 6 years if the lessor is a legal person). The furnished lease is usually signed for 1 year, or 9 months for a student. These Classic leases allow a tenant to be housed in a steady And are governed by the 1989 law.

‍

The Mobility lease

Created by the Loi Élan in 2018, this lease is intended for students, trainees, or persons in professional mobility. It is concluded for a duration from 1 to 10 months, non-renewable And without security deposit, which sets it apart from the others rental contracts.

‍

The seasonal lease

This type of contract is used for short term rentals, often By the week or by the month, in a frame touristic or temporary. It does not fall under the same rules as Classic leases.

‍

Payment terms, security deposit and mandatory documents

Whatever the type of contract, some mentions are mandatory to oversee the rental and protect both parties.

‍

Les terms of payment of rent

The leasehold or rental contract must specify:

• the rent amount,
• The date of payment (often monthly),
• The modalities : bank transfer, Direct debit, etc.

‍

The security deposit

Ce amount paid by the tenant at the time of signing is used to cover possible Unpaid or degradations. He is:

• of 1 month's rent excluding charges For a empty location,
• of 2 months maximum For a furnished rental.

‍

The essential documents

According to the Alur law, everything rental lease must include the following items:

• Identity of proprietary And of tenant,
• Property address And her description,
• Rental period and cancellation conditions,
• Rent amount, security deposit, charges,
• List of equipments provided (in case of furnished),
• Technical diagnostics (DPE, asbestos, electricity... ),
• State of play and condominium regulations (if applicable).

‍

Obligations of the tenant and the lessor

The leasehold allows you to frame the relationship between the proprietary And the tenant. It sets the rules to be respected on both sides.

‍

The obligations of proprietary

The lessor must:

• Renting a home decent and In good condition,
• Perform the major works necessary,
• Provide the mandatory diagnostics,
• Respect the legal duration of the lease.

‍

The obligations of tenant

The tenant undertakes to:

• Pay your rent on time,
• Maintaining the home (current repairs),
• Respect the rules of condominium,
• Return the property in good condition.

‍

How long for a lease or rental contract?

La minimum duration The duration of the lease varies according to the type of contract:

• 3 years If the lessor is a particular,
• 6 years For a company or legal person,
• 1 year For a classic furnished rental,
• 1 to 10 months For a Mobility lease.

The seasonal rental contract is for its part limited to 90 consecutive days, without tacit renewal.

‍

Do you want to know more about what a civil lease is? Click on the link

‍

Should you choose a lease or a rental contract?

Even if both terms are legally similar, the choice will depend on context and use.

‍

Why choose a leasehold ?

• For a main residence,
• If you are looking for rental stability,
• To frame clear obligations and benefit from legal protections (especially for owners).

‍

Why opt for a short term rental contract ?

• For a seasonal rental, a Mobility lease, or a Occasional occupancy,
• If you are looking for a contract more flexible, without a long-term commitment.

‍

Do you need advice on what type of rental lease to choose for your home? Call in a real estate hunter.

‍

In summary

One leasehold Is a rental contract in the legal sense of the term. But in usage, we talk about leasehold For long term rentals with framed clauses, while the rental contract can also refer to shorter or flexible rentals.

In any case, make sure that your contract respects the mandatory legal information, that it is adapted to your situation (furnished, empty, mobility, seasonal), and that it protects fairly the owner as well as the tenant.

‍

FAQ: Your frequently asked questions about the lease and the rental contract

1. Are a lease and a rental contract really the same thing?

Yes legally, both terms refer to a rental contract between an owner and a tenant. However, in common usage, the word is often used leasehold for long-term rentals (main residence), and rental contract For short term rentals or Seasonal.

2. What type of contract should you choose for a rental of a few months?

If you are considering a temporary rental, the Mobility lease is a great option. It is aimed at students or people on professional mobility, for a period of 1 to 10 months, without security deposit. For the holidays, a seasonal rental contract is more suitable.

3. Can you cancel a lease before it expires?

Yes, but the conditions differ depending on whether you are tenant or owner. The tenant can give leave at any time, with a 1 to 3 months' notice depending on the zone. The proprietary, on the other hand, can only cancel the lease at the end of the term, and only to sell, take over the home, or in case of legitimate reason.

‍