Many people assume that renting an apartment is the same as apartment leasing. But there are some fundamental differences between a rental contract and an apartment lease. Which one is right for you depends upon your unique circumstances.

An apartment lease is a written, binding contract for a specific length of time—usually six months or a year—between a tenant and a landlord. The terms of the lease includes the monthly rental rate , and either party may not change these terms until the lease runs out. Under a lease, you must pay rent, usually on the same day every month; you may not move out, and the landlord cannot raise your rent or ask you to move until the lease runs out.

A rental agreement is usually for a shorter length of time, such as 30 days or a month. Many apartments are rented out month-to-month, which means that while most rental agreements are renewed each month, the landlord can decide to evict you or to raise the rent. Proper written notice is required, but the landlord or the tenant can change the terms of the rental agreement at the end of each 30-day period.

If you need a place to live for a short period of time; for example, you’re relocating to a city temporarily for work, then a month-to-month rental agreement makes sense. Or if you’re renting an apartment while work is being done on your home, then a short-term rental is a good idea. But for most people, an apartment lease is a smarter choice. While you do have to commit to the terms of lease, you’ll be protected from random rent hikes and other changes that aren’t covered by the lease. Many landlords prefer leasing out their apartments because they’ll get a more stable tenant base and rent paid on time each month. Apartment leases also often cover issues such as paying for routine maintenance and upkeep of the unit, so if a plumber or handyman is needed, you can just call your landlord. Renters sometimes have to cope with problems on their own.