Renting (also called leasing) is where someone pays money to use something for a definite amount of time. This can be anything from a car or house to a DVD. Car rental for example is usually short-term; the user returns the car in a few days.
The document that has all the details written on it is called the lease. The person who owns the item that will be leased or rented is called the lessor. The person who is paying the money to use the item is called the lessee. If it is a house, building, or land that is being leased, the person who pays the money is called the tenant. For example, a tenant farmer rents a farm from its owner. Convict leasing was a historical practice of prisons in the United States and certain other countries offering convicted prisoners as ultra-cheap labor to private entities as a form of penal servitude.
There are many kinds of leases:
- Finance lease
- Operating least
- Hire purchase
- Rent-to-own
- Closed-end lease
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