Leasing is when an owner (called a lessor) sells the use of his property (like equipment, a car, a house, or a business) to someone else (called a lessee). For many people, leasing is a better option than buying because it requires less money down. This means that more people are eligible to lease than to buy. For example, a business may not be able to afford to buy a piece of property that costs $1 million. Instead, they may rent it for $5,000 per month, which they can pay for with the money they make...
Leasing is when an owner (called a lessor) sells the use of his property (like equipment, a car, a house, or a business) to someone else (called a lessee). For many people, leasing is a better option than buying because it requires less money down. This means that more people are eligible to lease than to buy. For example, a business may not be able to afford to buy a piece of property that costs $1 million. Instead, they may rent it for $5,000 per month, which they can pay for with the money they make.
An IT company needs to have the most up-to-date high-tech equipment, so they may lease the best computers and have an upgrade clause in their contract. This is a lot cheaper than always buying the newest model, especially since computers are always getting better and the older ones become useless very quickly.
The user usually rents many other kinds of equipment, like those used in construction, entertainment, weddings, and offices. When building a new building, you will need things like bulldozers, loaders, graders, and cranes. If the owner of the building bought these things for short-term use, he would waste hundreds of thousands of dollars. By leasing the machines, he pays less for them and is sure that they will be fixed and taken care of.
Equipment rentals are a big part of the entertainment business, from a child's birthday party to a huge corporate event. Many parents rent big waterslides, cotton candy machines, and "moon walks" to make their child's party more fun. Companies that want to impress clients throw big parties with fancy light shows, live broadcasts, and other big presentations, all of which require leased equipment.
Weddings and bat/bar mitzvahs are also big reasons why people need to rent. These events often need a lot of silverware, tablecloths, chairs, and tables. Some people even choose to rent huge tents for their event, which is another thing that can be rented. Most weddings have five or more vendors who rent out different services, like food, supplies, and music for the event.
Business offices have to give their employees the tools they need to make a lot of paperwork and computer files. Computers, printers, scanners, copiers, and fax machines are often leased because the lease agreement includes service and maintenance for the lessee. Many contracts include supplies, upgrades, and installation, all of which would be too expensive to buy separately. In many of these cases, leasing is a much better deal than buying.
The car is another thing that is often rented. Many people disagree about whether it's better to lease or buy a car. On the one hand, the person who leases the car pays a slightly lower price for the best years of the car's life. But of course, the buyer can sell the car at the end of the lease, while the lessee has to give it back to the owner without getting any money back.
Homes, such as houses, mobile homes, and apartments, are often rented. This is a great option for someone who is trying to save money for a down payment on a home. It is also a good way for people who own their own homes to make money without selling them. Many people make all of their money by buying run-down homes, fixing them up, and renting them out to other people.
Leasing a business is like renting a house. A person or company will buy a strip mall and rent out each storefront to a different business. They will think about what kinds of businesses will do well in the area and offer a variety of services on the property. The store's owner would rather rent it than buy it because it's cheaper and the landlord will take care of all repairs and maintenance.
