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Question: There are two parties in any lease contract-the lessee and the lessor. To a lessor, a lease analysis involves a capital budgeting analysis of the property or equipment to be leased.
Lease payments work like rental fees you pay for the right to use the owner's asset under specified terms. The lease payment amount includes costs for monthly depreciation, finance charges, and applicable taxes.
A lease is a contract between two parties where one party, the lessor, allows the other party, the lessee, use of their property for a period of time in exchange for consideration, usually a monthly sum of money.
A fixed period of time, held by the lessee (or ?tenant?). The lessor (or ?landlord?), having parted with this right. to exclusive possession, merely holds the basic title (the ?reversion?) during the existence of the lease.