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
What is a Lessor and Lessee in Real Estate? - Innago A lessor is a property owner who leases their property to another party, typically receiving rent in return, while a lessee is the tenant who leases and uses the property under agreed terms