Lease

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What is a 'Lease '

A lease is a legal document outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use of an asset and guarantees the lessor (the property owner) regular payments from the lessee for a specified number of months or years. Both the lessee and the lessor must uphold the terms of the contract for the lease to remain valid.

BREAKING DOWN 'Lease '

Leases are the contracts that lay out the details of rental agreements in the real estate market. For example, if you want to rent an apartment, the lease will describe how much the monthly rent is, when it is due, what will happen if you don't pay, how much of a security deposit is required, the duration of the lease, whether you are allowed to have pets, how many occupants may live in the unit and any other essential information. The landlord will require you to sign the lease before you can occupy the property as a tenant.

RELATED TERMS
  1. True Lease

    A specific type of multi-year lease which does not pass on ownership ...
  2. Lessee

    The person who rents land or property from a lessor. The lessee ...
  3. Sandwich Lease

    A lease in which a party rents property from the property owner ...
  4. Bargain Renewal Option

    A clause in a lease agreement that gives the lessee the option ...
  5. Triple Net Lease

    A lease agreement that designates the lessee (the tenant) as ...
  6. Lessor

    The owner of an asset that is leased under an agreement to the ...
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RELATED FAQS
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  2. What are the differences between single, double and triple-net leases?

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  3. Why might a bond agreement limit the amount of assets that the firm can lease?

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