Commercial leases are legally binding contracts that exist between a tenant, usually a business, and a landlord. The lease gives tenants the ability to use a property for business purposes or any sort of commercial activity for a defined period of time. In exchange for the use, the business pays money to the landlord. A …
What is a Gross Lease? Definition, Advantages, and Disadvantages Read More »
A commercial lease is a type of lease that businesses enter into with a landlord. Leasing a property instead of acquiring it, can be beneficial for them as it allows them to manage capital, while also keeping the expenses down to a minimum. Commercial leases are different from residential leases as they allow both parties …
What is Ground Lease? Types, Advantages, And Disadvantages Read More »
Commercial leases for a property can come in many different forms and types. The two most common commercial leases are gross and net leases. The difference between the two comes from how much the tenant, or the business, has to pay the landlord. Net Lease A net lease is a type of commercial lease in …
What is Triple Net Lease? Types, Advantages, and Disadvantages Read More »
Introduction: A sublease is also known as sublet. It is a contract made between a tenant and another person. In this contract, the person can live in the rented apartment while the name of the tenant exists on the lease. The previous original tenant is called the sublessor while the new tenant is called the …
What is Sublease? 5 Importance Steps You Should Know Read More »
Definition: This lease is the one in which the lessor can only finance the asset leased. As for the other ownership rights, they are given to the lessee. Consequently, the asset is kept in the record as the lessee’s property in the general ledger section. This is called a fixed asset. The lessee can only …
What are Capital Lease Criteria? Definition, Criteria, And More Read More »
Leasing is a beneficial way for businesses to obtain different assets without having to pay an upfront purchase price, or without acquiring it at all. Lease agreements usually involve a deal between two parties, the lessor and the lessee. A lessor is a party that owns the asset and gives it to the lessee, the …
Combination Lease: What Is It? And How Does It Work? Read More »
Introduction The primary ways to fund the purchase of an investment or assets are lease and financing. The object is the same to provide the hirer the right and procession to an asset. Both financing and leasing facility allows the owners to source valuable assets. Do you know what reasons make lease different from finance? …
Meaning of leased asset Leased assets are those assets that are leased by the owner to another party in consideration of money or any other favor. While leasing the asset, the owner enters into an agreement that allows the other party to make use of the asset temporarily. During the term of the lease, the …
What is a Leased Asset? – Types, Accounting Treatment, And More Read More »
Overview: Capital Expenditures are important for the growth and expansion of the company. They require considerable planning and resources that need to be utilized. Organizations need to ensure that they can finance this capital expenditure relatively easily. Since companies do not always have sufficient resources to finance these operations internally, they must arrange for this …
Types of Equipment Leases: Definition, Types, and More Read More »
Definition: In the modern-day age, it can be seen that lease agreements are used more than ever. In this regard, a couple of options are available to parties involved, which can be chosen per personal preference. The prepaid lease agreement is one of the organizations’ most popular leasing options. A prepaid Lease can be termed …
What are Prepaid Lease Agreements? Definition, Requirement, Advantages, Disadvantages Read More »
