- An agreement where one party makes payments to another party in exchange for the right to use a good, service or piece of property for a set period of time. The payments made in a rental agreement are referred to as "rent."
lease payment, lease
Related Terms and Acronyms
- Eviction — Definition,
- The act of kicking someone out of a property, usually for violating terms of a lease.
- Ground Rent — Definition,
- Amount a leaseholder pays periodically for use of land only.
- Landlord — Definition,
- One who rents or leases his or her property to another person or a business.
- Lease (lse) — Abbreviation,
- A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
- Lessee — Definition,
- The person who signs a lease.
- Lessor — Definition,
- The person who grants a lease.
- Purchase Option — Definition,
- An agreement where a portion of monthly rent can be credited toward the purchase of a property.
- The portion of a vehicle lease that determines how much a lessee pays the lessor at the end of the lease to buy the vehicle. The price is usually the residual value.
- Rent Loss Insurance — Definition,
- Hazard insurance that pays for a loss in rental value or rental income if damage causes the property to become unfit for habitation.
- Rent-to-Own (RTO) — Acronym,
- An agreement to purchase an asset after a series of rental payments.
- Rental Agreement (RA) — Acronym, Important,
- A document that states the terms and conditions for tenancy of a dwelling.
- Rental Property (RP) — Acronym, Important,
- Property that is occupied by rent-paying tenants and not the owner.
- Security Deposit (sec, sec dep) — Abbreviation,
- In automobile leases, sometimes called reconditioning reserve. An amount, often the same as one month's payment, the dealer holds to be sure that the car will be returned in good condition. It is to be returned, less fees and damage charges, at the end of the lease.
- Step Down Lease — Definition,
- A lease providing for decreases in rental payment at specified dates.
- Step Up Lease — Definition,
- A lease providing for increases in rental payment at specified dates.
- Sublet — Definition,
- An arrangement where a tenant leases property to a subtenant.
- Tenant — Definition,
- One who rents property.