Difference between Rent and lease. - Indian Real Estate Forum

nive1980 · 15-04-08

Hi,
I would like to know the difference between leasing out an apt and renting out. For example: If an apt costs Rs 30k per month as a montly rent, I beleive it would be safe to ask for a lease amount of Rs 6Lakhs per annum(which would mean 6l/12=50k per month rent). Why would a tenant pay at the rate of 50k per month as lease amount when he can get the same apt for 30k per month as montly rent, or is it that the lease amount also includes an amount which the land lord would not get.

Jaya · 16-04-08

Hi,

If i am not wrong, the lease amount is completely refundable. eg: if you take 6lacs as lease amount for 2 years, end of 2 years you need to refund that 6 lacs to the tenant. I think the next question will be what is the benefit for the owner.
let us take a scenario where in owner buy a flat for $50lacs and let it for rent $6lacs lease. owner can use that money to repay the loan amount so that he can save on the interest portion.

24-05-08

hi there,

what jaya is quoted is perfectly right, adding on to this a lease amount is generally worked out as the bank interest which shall be recieved on monthly basis.

A lease can be for 2, 3, 5 years based on this the amount Lease Key money varies.

And while vacating the amount would be refunded to you without interest.

Regards

15-04-08	#1
nive1980 New Member Join Date: Apr 2008 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 0	Difference between Rent and lease. Hi, I would like to know the difference between leasing out an apt and renting out. For example: If an apt costs Rs 30k per month as a montly rent, I beleive it would be safe to ask for a lease amount of Rs 6Lakhs per annum(which would mean 6l/12=50k per month rent). Why would a tenant pay at the rate of 50k per month as lease amount when he can get the same apt for 30k per month as montly rent, or is it that the lease amount also includes an amount which the land lord would not get.

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16-04-08	#2
Jaya New Member Join Date: Dec 2007 Posts: 16 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Hi, If i am not wrong, the lease amount is completely refundable. eg: if you take 6lacs as lease amount for 2 years, end of 2 years you need to refund that 6 lacs to the tenant. I think the next question will be what is the benefit for the owner. let us take a scenario where in owner buy a flat for $50lacs and let it for rent $6lacs lease. owner can use that money to repay the loan amount so that he can save on the interest portion.

24-05-08	#3
sengs.kiran Unregistered User Posts: n/a	hi there, what jaya is quoted is perfectly right, adding on to this a lease amount is generally worked out as the bank interest which shall be recieved on monthly basis. A lease can be for 2, 3, 5 years based on this the amount Lease Key money varies. And while vacating the amount would be refunded to you without interest. Regards