People are often confused about the meaning of the word “lease”. They think that “lease” refers only to agreements that are for a fixed term, for example a “one year lease”, or that “lease” only applies to written agreements. This is not so.
A lease can be month to month or even week to week and need not be in writing. To avoid confusion, we do not use the narrow term “lease” when discussing residential real estate. The broader terms, “rental agreement” or “tenancy agreement” include all agreements made between landlords and tenants concerning the rental of premises.
We use “rental agreement” when discussing residential agreements and “commercial lease agreement” when the agreements are specifically for commercial tenancies.