BROWSE

Lease

Definition

A lease is a contractual arrangement calling for the to pay the lessor for use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial or business equipment is also leased.

What is a 'Lease '

A lease is a contract outlining the terms under which one party agrees to rent property owned by another party. It guarantees the lessee, the tenant, use of an asset and guarantees the lessor, the property owner or landlord, regular payments from the lessee for a specified number of months or years. Both the lessee and the lessor face consequences if they fail to uphold the terms of the contract. Next Up Single Net Lease Lessee Gross Lease Triple Net Lease

Explaining 'Lease '

Leases are the legal and binding contracts that set forth the terms of rental agreements in real estate. If a person wishes to rent an apartment or other residential property, for example, the lease prepared by the landlord describes the monthly rent amount, when it is due each month, what happens if the lessee fails to pay his rent, how much of a security deposit is required, the duration of the lease, whether the lessee is allowed to keep pets on the premises, how many occupants can live in the unit and any other essential information. The landlord requires the tenant to sign the lease, thereby agreeing to its terms before occupying the property.

Breaking a Lease

Consequences for breaking leases range from mild to damaging, depending on the circumstances under which they are broken. A tenant who breaks a lease without prior negotiation with the landlord faces a civil lawsuit, a derogatory mark on his credit report or both. As a result of breaking a lease, a tenant may also encounter problems renting a new residence, as well as other issues associated with having negative entries on a credit report. Tenants who need to break their leases often must negotiate with their landlords or seek legal counsel. In some cases, finding a new tenant for the property or forfeiting the security deposit inspires landlords to allow tenants to break their leases with no further consequences.

Other Types of Leases

Tenants who lease commercial properties sign various types of leases structured to put more responsibility on the tenant and provide greater up-front profit for the landlord. For example, some commercial leases require the tenant to pay rent plus the landlord's operational costs, while others require tenants to pay rent plus property taxes and insurance.


Further Reading


Lease accounting: A review of recent literature
www.tandfonline.com [PDF]
… However, there is not much support for the removal of the current finance and operating lease … standard argued against straight line depreciation as it does not reflect the economics of the … Additionally, they find that investors value firms as if the lease assets were capitalised and …

Issues in lease financingIssues in lease financing
www.jstor.org [PDF]
… However, there is not much support for the removal of the current finance and operating lease … standard argued against straight line depreciation as it does not reflect the economics of the … Additionally, they find that investors value firms as if the lease assets were capitalised and …

Operating lease finance in the UK retail sectorOperating lease finance in the UK retail sector
www.tandfonline.com [PDF]
… However, there is not much support for the removal of the current finance and operating lease … standard argued against straight line depreciation as it does not reflect the economics of the … Additionally, they find that investors value firms as if the lease assets were capitalised and …

Capital structure and the changing role of off-balance-sheet lease financingCapital structure and the changing role of off-balance-sheet lease financing
papers.ssrn.com [PDF]
… However, there is not much support for the removal of the current finance and operating lease … standard argued against straight line depreciation as it does not reflect the economics of the … Additionally, they find that investors value firms as if the lease assets were capitalised and …

The fixed payment financing decision: To borrow or leaseThe fixed payment financing decision: To borrow or lease
www.sciencedirect.com [PDF]
… However, there is not much support for the removal of the current finance and operating lease … standard argued against straight line depreciation as it does not reflect the economics of the … Additionally, they find that investors value firms as if the lease assets were capitalised and …

Economic and institutional determinants of lease financing for European SMEs: An analysis across developing and developed countriesEconomic and institutional determinants of lease financing for European SMEs: An analysis across developing and developed countries
www.tandfonline.com [PDF]
… However, there is not much support for the removal of the current finance and operating lease … standard argued against straight line depreciation as it does not reflect the economics of the … Additionally, they find that investors value firms as if the lease assets were capitalised and …



Q&A About Lease


What is a lease?

A lease is a contract outlining the terms under which one party agrees to rent property owned by another party.

Who are the parties involved in a lease?

The lessor, or property owner, and the lessee, or tenant.

What does a lease guarantee?

A lease guarantees use of an asset and guarantees regular payments from the lessee for a specified number of months or years.

How do both parties face consequences if they fail to uphold their end of the contract?

If either party fails to uphold their end of the contract, they will be sued by the other party. They may also have negative marks on their credit report as well as encounter problems renting new residences and other issues associated with having negative entries on their credit report.

What are some examples of economic rents?

Examples include land and patents.

Does a moral economy rely on opportunity cost?

No, it doesn't rely on opportunity cost because it relies on natural opportunities instead of contrived exclusivity created by government privilege or labor guilds (e.g., insider corruption).

Is a moral economy opposed to capitalism?

No, it isn't necessarily opposed to capitalism; however, it can be used as a critique against certain aspects of capitalism such as monopoly power and corruption by labor guilds or state beneficiaries (e.g., political insiders).

What is economic rent?

Economic rent is any payment in excess of the costs needed to bring that factor into production.

Are there different types of economic rents?

Yes, there are different types.

What is a moral economy?

A moral economy is one where people work together for the common good rather than just for themselves or their own gain. It also refers to an economy that uses only natural resources and opportunities available in nature without creating artificial exclusivity through government privilege or labor guilds.

How does economic rent differ from normal profit?

Normal profit involves productive human action, while economic rent does not.

Can you give an example of how a moral economy differs from capitalism?

One difference between them is that in capitalism there's no need for labor unions because workers have freedom of contract which allows them to negotiate with employers directly over wages and working conditions whereas under a moral economy they're necessary because workers don't have this freedom due to employer-created monopolies (i.e., insider corruption) which gives employers unfair bargaining power over employees so they can exploit them freely without fear of losing their jobs since employees have nowhere else to go if

Leave a Reply

Your email address will not be published. Required fields are marked *