A lessor is the party that gives another party the temporary right to use their property. In other words, the lessor is the party that grants the lease to a lessee, whom is the party who has the right to use the property. A lessor extends the lease to the lessee in return for payments according to the payment schedule highlighted in the lease agreement.
The terms of the lease can be found in the rental or lease agreement. Each party’s rights, duties, and obligations are set forth in the lease agreement. While the terms of the lease are valid if all components of the contract are legal, party’s have the right to alter the agreement. Common alterations have to do with cancellations, changes in pricing, and others.
Oftentimes alterations to the lease agreement occur when circumstances change such as a lessee wanting to lease the property for a longer period than originally expected or wanting to change units they are renting for another one in the same building. This might also occur on a car lease, when a party decides to terminate a lease prior to the expiration of the lease to lease a newer model.
Various Types of Lease
A lease can be for any type of real or personal property. This may include a vacant unit an apartment for lease, a car, business equipment and any other type of equipment. While the lessor remains the owner of the property being leased, the lessee maintains the right to make reasonable use and enjoyment of the property being leased. All parties have rights and obligations relating to the lease.
One common type of lease is a lease option that grants the lessee the option to purchase the property following the expiration of the lease. In this situation, lease payments will likely be applied towards the purchase of the asset in consideration.
The lease that is most often utilized is a residential lease for a unit in an apartment. Housing leases are regulated by the government in many instances because of the widespread implications of housing policy. Some states have rent control policies that limit how much a lessor can rent a property or unit for. Rent control states also have the option to require a landlord to offer affordable housing for a percentage of the units they own.