Lessor And Lessee Meaning
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FAQ
A lessee is anyone who signs a lease to rent property from another party. This could be an individual renting an apartment or a business leasing office space. Knowing who the lessee is helps clarify roles in the rental agreement and ensures a smooth relationship with the lessor.
A lessor is essentially someone who grants a lease to someone else. As such, a lessor is the owner of an asset that is leased under an agreement to a lessee. The lessee makes a one-time payment or a series of periodic payments to the lessor in return for the use of the asset.
LESSEE'S SIGNATURE ON THE RENTAL AGREEMENT CONSTITUTES LESSEE'S ACKNOWLEDGEMENT AND AGREEMENT TO ALL OF THE TERMS CONDITIONS STATED HEREIN.
For example, if a car dealership leases a vehicle to someone, the car is the asset. The person renting the car is the lessee and the dealership is the lessor. The lessee pays the dealership, or lessor, for the right to use the vehicle for an agreed-upon amount of time.
The lessee pays a fixed periodic amount known as the lease rent to the lessor for the use of the assets.
