Lease: meaning, definitions and examples

Use this term for a legal agreement where one party rents property, like an apartment or commercial space, from another party for a set period of time, generally long-term (six months to a year or more).

• The tenant signed a one-year lease for the apartment
• They decided to renew the lease for another year

Best used for a less formal, often shorter-term (month-to-month) arrangement between a landlord and tenant for renting property. These agreements tend to have more flexible terms compared to a lease.

• They signed a rental agreement that allows them to stay on a month-to-month basis
• The rental agreement was flexible, letting them move out with just a month's notice

Applicable when referring to any legally binding agreement between two or more parties, which can include various contexts beyond property rentals, such as employment, sales of goods, or services.

• The contractor signed a contract to build the new office complex
• She reviewed the contract carefully before agreeing to the terms

In British English, 'lease' can be used as another form of 'let' when referring to renting out property.

• They decided to lease the flat to students.

Use 'rent' for both short-term and long-term agreements where money is paid for the use of property, vehicles, or other items. Commonly used in American English.

• We need to rent a car for our vacation.
• They decided to rent an apartment downtown.

Commonly used in British English, 'let' refers to allowing someone to live in a property in exchange for rent.

• They let their summer cottage to tourists during the peak season.
• She decided to let out her spare room to a tenant.