Lease is an agreement that gives one person or company the right to possess property owned by another person or company. The possession lasts for a fixed period of time, called a term. Terms range from a few hours to many years. Items commonly leased include real estate, automobiles, and office equipment. The owner of the property is called the lessor or landlord. The person receiving the property is called the lessee or tenant. Most lessees promise to pay rent to the lessor.
Modern law often views a lease as a contract. If one party breaches (violates) a promise included in the lease, the other party may ask a court to force the breaching party to perform the promise, to pay money for damage caused by the breach, or to end the lease early.
Leases are either written or unwritten. Most states in the United States require that a lease be written if its term is longer than one year. The lease describes the property being leased, the term, the rent, and any other promises or conditions. The lessee and lessor each may agree to pay certain expenses, such as utility bills or maintenance costs. Also the lessor may agree to keep the property safe from intruders. In some cases, unwritten promises are implied by law. For example, courts and laws in many states assume that a landlord must ensure that residential property is fit to live in.
During the lease term, both the lessor and lessee own rights in the property. While the lessee has the right to possess and use the property, the lessor is entitled to protection of the property. If the lessee harms the property, a court may order the lessee to pay for repair and to refrain from further damage. The court may also permit the lessor to end the lease early.
