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Yes, people lease domain names. However you will need to consider which is the more attractive option for you; leasing or just selling your domain. For an example, you could lease a domain for $1000 USD/yr for 10 years or just sell the domain for $10k the next time someone asks.
You can keep a domain for 10 years and still sell at a considerable profit. While you are waiting for it to sell you can monetize the domain and throw in some SEO, which in turn can justify the cost to the buyer. Most domains end up paying for themselves so your portfolio won't really cost you any money out of pocket.
You also need to consider that you'll buy some domains that won't sell, and that's just part of the cost of being a domain flipper. Part-time flippers can earn from $1,000 to $8,000 per year flipping domain names. Full-time flippers earnings can range from $30,000 to $100,000 and more per year.
1) Register a Domain Yourself All you need is an account with a domain registrar to pay the fee to register a domain name. You pay the registrar directly and may purchase and manage all services on the domain yourself or delegate access to third parties as needed. Direct control over your domain name.
Is domain flipping profitable? Yes, domain flipping can be very profitable. But it takes time and patience before you really start to create an income out of it. If you are dedicated to making it work, you can make a lot of money from domain flipping.