Lessor and Lessee Meaning
Do you think renting stuff makes life easier? The answer is most definitely yes! If you don’t have the money to buy a car of your own “yet”, you can simply rent a car for the meantime. The same goes for real estate property, boat, work tools, sports equipment, and so on. Understanding the difference between lessor and lessee is ideal as these terms apply to the common practice of renting.
Basically, this article will cover not only the difference between lessee and lessor, but also the lessor and lessee meaning, and we will try to answer the question “what is the difference between lessor and lessee?” Read to the end to see the lessee and lessor meaning and a comparison table that shows how these terms differ from one another.
Definition of Lessor
This is the party who receives a certain amount of money to donate a property for a period of time. He or she is the owner. In this case, ownership is what makes the difference in the definition of lessor and lessee. A very good example o help understand how to define lessor and lessee is the owner of real estate property. Whoever wishes to stay in his or her house must pay a certain amount of money as rent to the landlord.
Definition of Lessee
To rent an office, the right thing to do is to find out who the landlord/agent is, discuss with him or her, and reach some (legal) agreement before you can access the space and use it as agreed. In this case, you are the tenant and that’s one of the differences in the definition of lessee and lessor.
A lessee is a person who pays a fee in order to use a property for a certain period of time. He or she is expected to comply with all the conditions set by the lessor in legally binding documents. These documents establish the relationships that define lessee and lessor.
Lessor vs Lessee Comparison Table
|Basis of Comparison||Lessor||Lessee|
|Definition||A lessor is the party who receives a certain fee to donate a property for a period of time after which he or she regains full ownership of the property||A lessee is defined as a person who pays a fee in order to use of an asset for a period of time.|
|Legal condition and ownership||Is the legal owner of the asset||Is the momentary owner of the property as agreed|
|Repairs and maintenance||Completely responsible for repairs||Partly responsible for repairs|
|Tax payment||Takes care of tax payment||Not responsible for tax payment|
Conclusion of the Main Difference Between Lessor vs Lessee
There are a lot of things one should know about property renting, but first of all, you need to know the meaning and difference between a lessor vs lessee. Knowing about these key differences can help you decide if it is in your best interest to rent a property or to own one.