Lease Definition

A lease is a contractual agreement that allows one person to utilize the property of another person for a specified period in exchange for a specified payment. Usually, people think of apartments when they think of leases-in that case, the lease allows the renter to live in the landlord’s apartment in exchange for paying monthly rent.

Other common leases involve automobiles, expensive computer equipment, or even some types of computer software-some find these items attractive to lease because they depreciate so rapidly. The primary different between leasing and buying is that at the end of the lease, the original owner still owns the asset.