Lessor vs Lessee - What You Need to Know About How Leases Work A lease is a contractual arrangement where one party, called the lessor, provides an asset for use by the other party, referred to as the lessee, based on periodic payments for an agreed period The lessee pays the lessor for the usage of the asset or property
Lessee vs. Lessor: Whats The Difference in Lease Agreement (2025) What is a Lessee? A lessee is an individual or company that acquires the occupation and use of property or an asset on lease In real estate, the tenant is a lessee In any lessor and lessee contract, the lessee is the entity that enters the lease and promises to abide by the rules
Who Is the Lessee and Lessor in a Lease Agreement? A lessor is the owner of an asset who grants someone else the right to use it; the lessee is the person or business that pays for that temporary use These roles appear in virtually every lease agreement, whether you’re renting an apartment, leasing office space, or financing equipment
What Is a Lessee? Key Rights and Responsibilities Explained A lessee is a person who rents land or property from a lessor The lessee is also known as the “tenant” and must uphold specific obligations as defined in the lease agreement and by law
Lessor vs. lessee: Understanding the key differences - Netgain In law, lessee means a person or corporate entity that leases an asset for use for a period of time in exchange for payment The lessee does not own the asset but has the right to use the asset as specified in the lease contract