What is a lease?

A lease is fundamentally a legal agreement that specifies the terms under which a tenant may occupy a property owned by a landlord. This document typically outlines essential components such as the duration of the rental period, the amount of rent due, payment methods, responsibilities for maintenance, and any rules regarding the use of the property. Such clarity provided by a legal framework is critical in establishing rights and obligations for both parties, thereby helping to prevent misunderstandings and providing legal recourse if disputes arise.

While verbal agreements can be valid, they lack the enforceability and clarity that a written lease provides, which is why the second option stands out. A lease goes beyond just outlining payment dates; it encompasses a comprehensive set of guidelines and stipulations that govern the relationship between the tenant and landlord. Additionally, leases can vary widely in duration, from short to longer terms, making them more versatile than simply being categorized as short-term contracts. Thus, the legal nature of a lease and the breadth of detail it includes are what make it the correct definition in this context.