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Alquilar vs. arrendar vs. rentar

The Spanish verbs alquilar, arrendar, and rentar all express the idea of renting or leasing something. The primary differences lie in regional preferences, the level of formality, and whether the transaction is an everyday exchange or a formal legal agreement.

Alquilar

The word alquilar is the most standard and widely understood term for renting everyday goods and properties in Spain and much of South America. It is versatile and used for everything from bicycles and suits to apartments and cars.
Voy a alquilar un coche para el viaje por la costa.
(I am going to rent a car for the trip along the coast.)
Ellos decidieron alquilar su casa de la playa durante el verano.
(They decided to rent out their beach house during the summer.)
Necesitamos alquilar un traje elegante para la boda de mi hermano.
(We need to rent an elegant suit for my brother's wedding.)
Mis padres acaban de alquilar un apartamento en el centro de la ciudad.
(My parents just rented an apartment in the city center.)

Arrendar

The verb arrendar is primarily a formal and legal term used in contracts to refer to leasing property, land, or commercial assets. While it acts as the standard legal term across the Spanish-speaking world, it is also used in everyday casual speech to mean renting a house or apartment in specific countries like Chile and Colombia.
El contrato especifica las condiciones para arrendar el local comercial.
(The contract specifies the conditions to lease the commercial property.)
El campesino busca arrendar una parcela para cultivar maíz este año.
(The farmer is looking to lease a plot of land to grow corn this year.)
La empresa va a arrendar nuevos equipos informáticos para la oficina.
(The company is going to lease new computer equipment for the office.)
Estoy buscando una habitación para arrendar cerca de la universidad.
(I am looking for a room to rent near the university.)

Rentar

The verb rentar is the everyday equivalent of renting in Mexico, Central America, and parts of the Caribbean, where it is used for houses, cars, and other common items just like alquilar is used elsewhere. However, in Spain, rentar does not mean to lease, but rather to yield a financial return, to be profitable, or simply to be worth the effort.
Vamos a rentar una cabaña en el bosque para el fin de semana.
(We are going to rent a cabin in the woods for the weekend.)
No me parece buena idea rentar un auto sin seguro a todo riesgo.
(I do not think it is a good idea to rent a car without comprehensive insurance.)
Ella planea rentar su vestido de graduación en lugar de comprar uno.
(She plans to rent her prom dress instead of buying one.)
En España te dirán que ese negocio no va a rentar lo suficiente.
(In Spain they will tell you that this business is not going to yield enough profit.)

Summary

To summarize, use alquilar for general renting in Spain and South America, and rentar for everyday renting in Mexico and the Caribbean. Use arrendar when dealing with legal contracts, long-term commercial leases, agricultural land, or when casually renting property in countries like Chile and Colombia. Keep in mind that in Spain, rentar implies that something is profitable or worthwhile rather than an act of leasing.