At its core, a lease agreement is a contract between two parties: the lessor and the lessee. The lessor owns an asset and grants the lessee the right to use it in exchange for payments.
Understanding the roles and responsibilities of both the lessor and the lessee is crucial for a smooth and legally sound leasing arrangement. Confusion can lead to disagreements, financial headaches, and even legal battles.
This article will dive deep into the distinction between lessor vs lessee. We’ll cover definitions, explore responsibilities, break down different lease types, discuss accounting implications, and highlight the key differences to help you navigate the world of leasing with confidence.