LEASE PAYMENT Meaning and
Definition
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A lease payment is a regular financial obligation made by the lessee (the individual or entity leasing an asset) to the lessor (the individual or entity who owns the asset) in exchange for the use and possession of the asset for a specified period of time. It is a contractual arrangement where the lessee agrees to pay a predetermined amount at predetermined intervals, typically monthly, for the duration of the lease agreement.
The lease payment encompasses various components, including the base rent, which is the fundamental sum paid for the lease term. In addition, it may also include other charges such as maintenance fees, insurance coverage, property taxes, or utilities, depending on the terms of the lease agreement. These additional costs are often known as operating expenses or common area maintenance charges.
Lease payments are commonly associated with real estate, where individuals or businesses lease commercial properties or residential homes. However, they can also be applied to other assets such as vehicles, equipment, or machinery.
The duration of lease payments is typically predetermined and outlined within the lease agreement. It can range from a few months to several years, depending on the nature of the lease and the agreement between the lessor and the lessee. Failure to make lease payments as agreed upon can result in penalties, legal consequences, and potential eviction or repossession of the leased asset.
Common Misspellings for LEASE PAYMENT
- kease payment
- pease payment
- oease payment
- lwase payment
- lsase payment
- ldase payment
- lrase payment
- l4ase payment
- l3ase payment
- lezse payment
- lesse payment
- lewse payment
- leqse payment
- leaae payment
- leaze payment
- leaxe payment
- leade payment
- leaee payment
- leawe payment
- leasw payment
Etymology of LEASE PAYMENT
The word "lease" originated from the Old English word "lǣs" or "lǣsan", which meant "to gather, collect, or harvest". It later evolved into "lesan" in Middle English, referring to "to gather crops". The term "payment" comes from the Old French word "paiement", derived from the verb "paier", meaning "to pay". The combination of "lease" and "payment" refers to the specific type of payment made under a lease agreement, where a tenant pays a regular amount to the lessor (property owner) for the right to use a property or asset for a defined period.
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