commerical law 

leases



A lease is an arrangement where one party owns an asset and another person uses it for a period of time.

Also known as renting a property, for commercial use or as a residential home.

Most businesses lease the property they operate from rather than owning it. rent is accounted for as a business expense.

equipment can also be leased in some circumstances.


arrangement


	a contract between the landlord/owner and the lessor

	regular payments usually monthly

	may be governed by government legislative rules, e.g. maximum requested security bond for a residential lease
	
	lease terms from 12 months to 5, 10 years in the case of equipment
	


example

	residential property, $250 per week over 12 months, 
	tenant maintains the property as a normal house, 
	landlord responsible for maintenance to the building



accounting

operating lease


	lease payments put through as expenses



finance lease	
	
	an asset added to the balance sheet, a debt for that amount added, interest costs accounted for (details not specified)
	