Final answer:
The main difference between a month-to-month rental agreement and a lease is that a lease requires a longer commitment. Renting can be more affordable and flexible, while buying offers potential long-term financial benefits and stability.
Step-by-step explanation:
The primary difference between a month-to-month rental agreement and a lease is that a lease requires a longer commitment.
In a month-to-month rental, either party can terminate the agreement with a 30-day written notice, while a lease sets a fixed rental period during which early termination might incur penalties. When comparing and contrasting the advantages and disadvantages of renting versus buying, renting can often result in a lower monthly expenditure and the flexibility to move without the burden of selling a property.
However, renters do not gain equity in the property and may face instability in terms of rent increases or the need to relocate. Conversely, buying a home involves a larger initial investment but potentially offers the benefits of long-term financial investment, stability, and the freedom to personalize one's living space.