Leasing and leasing are unusual transactions that allow you to receive any property for use without having the necessary amount of funds to buy. These transactions have both similar points and significant differences. If a person or company needs to get a specific object for use, then the pros and cons of each design option should be evaluated. Differences between leasing and rent are considered significant, therefore, the decision should be justified.
Rental concept
A lease is represented by a process in which a certain property is transferred to another person or company for temporary use. Typically, the subject of the agreement is real estate, manufacturing equipment or a car. The features of such a transaction include:
- for using the property, the lessee transfers to the owner a certain rent, the amount of which is fixed in the official contract;
- the lessor remains the owner of the item, therefore it is he who bears the costs associated with the maintenance and maintenance of the property, as well as with the payment of property tax;
- parties to such an agreement may be private individuals or companies;
- You can conclude a contract for any period;
- after the expiration of the contract, the item is returned to the owner;
- it is allowed, with the consent of both parties, to extend the term of this agreement.
Basic information about the rules for applying the lease is given in Art. 625 GK.
Types of rent
To determine the differences between leasing and rent, you should be well versed in these concepts. The main types of rental include:
- rental, but in this case the lessor should be a company that usually provides cars for temporary use;
- car rental with crew, when not only the car is transmitted, but also driver services are provided;
- standard lease, according to which completely different property can be transferred for use.
Leasing usually does not provide the tenant with the opportunity to buy property.
What is leasing?
Each person who needs some property for a certain time must decide on the concepts of rent and leasing. Leasing is also called finance lease. It is represented by investment activities, assuming that the property is transferred to the lessee for a limited period of time. Usually, a period equal to approximately the useful life of the item is chosen.
After the contract expires, the lessee can redeem this property, for which its residual value is used. This cost is prescribed in advance in the agreement.
With such cooperation, the owner remains the leasing company, although taxes are paid by the recipient of the property. The lessee is responsible for the technical condition and other parameters of the subject.
Types of leasing
Leasing and leasing are similar operations, but still some significant points are different. The main types of leasing include:
- financial;
- operational;
- returnable.
Each option has its own characteristics, and each lessor can make adjustments to the standard agreement.
Differences between leasing and rent
The above transactions have some significant differences, which should be known to all people and companies who want to receive property for temporary use for an optimal fee. What is the difference between leasing and rent? The main differences include:
- the subject of the agreement during leasing is usually chosen by the lessee, after which it is acquired by the leasing company, but when renting a lessee can only get the item that is already owned by the lessor;
- a lease agreement is usually executed for a period equal to the useful life of the property, but a lease agreement can be drawn up for several months or years;
- responsibility for the subject matter of the agreement lies with the lessee and lessor;
- the lessor can only be a company, but not only enterprises, but also individuals can transfer property for rent;
- usually, when drawing up a leasing agreement, it is possible to buy out the subject of this agreement, and when renting, transfer of ownership is rarely enough;
- the cost of the lease contract includes the payment for the use of property, as well as the redemption value, but when calculating rental payments, only the possibility of using the item is taken into account;
- rental payments below lease payments;
- the lessee can independently transfer the property for rent, but the tenant cannot dispose of the received object in any way.
Although there are really significant differences between leasing and leasing, these transactions have some similarities. They should be studied by each person or representative of the company if it is planned to conclude a transaction on the basis of which certain property will be obtained for temporary use.
Affinity of transactions
There are some common features of renting and leasing. Differences between financial leases and standard leases are considered significant, but the general points include:
- the transferred item remains the property of the lessor or lessor;
- property is provided for a strictly limited period of time, as enshrined in an official contract;
- the recipient of the item can use it only on the basis of the conditions specified in the agreement;
- tenants and lessees are required to pay a certain fee for the use of property, the amount of which is agreed upon with the owner in advance;
- at the conclusion of any transaction, it is required to draw up a formal contract signed by both parties.
If you want not only to use certain property, but also to buy it, then it is advisable to sign a leasing agreement. If you only need to temporarily use the property, then a rental agreement is suitable.
Pros and cons of leasing
The differences between leasing and credit and leasing are significant, as it is represented by a specific transaction with the following advantages:
- it is not required to have a large amount of funds to purchase an object;
- it is allowed to redeem the subject of the agreement after the expiration of its validity, and the residual value of the property is used for this;
- large companies overcome numerous restrictions, as they can use specific and expensive equipment at minimal cost;
- different programs are offered by lessors, which allows you to choose the most optimal type of agreement;
- property tax does not increase.
The disadvantages include the high cost of the item and a significant amount of monthly payments. Often the use of leasing leads to an increase in financial risks.
Pros and cons of renting
The positive aspects of leasing include:
- saving money on the purchase of any property;
- the lease process is quick and easy;
- you can choose any property;
- a transaction can be concluded not only with companies, but also with individuals;
- the service is considered accessible and widespread.
The disadvantages include the fact that if, for various reasons, the property received is destroyed or damaged, the tenant will have to cover the losses of the owner.In addition, various pitfalls may occur during the conclusion of the transaction, which leads to the emergence of risks for the tenant.
Conclusion
Leasing and leasing are different deals, possessing not only differences, but also some similarities. According to them, it is supposed to transfer certain property for use to third parties. A monthly amount of money is paid for using the item.
Each operation has both pros and cons. Therefore, before concluding any contract, you should evaluate all the parameters of leasing and leasing in order to choose the appropriate method of obtaining property for use.