Rent
Definition
Rent refers to the payment made by a tenant or lessee for the use or occupation of property, land, or other assets owned by someone else.
Analogy
Imagine renting an apartment as paying for temporary access and use of someone else's property. Just like you pay rent each month to live in an apartment without owning it, businesses may pay rent for using office space or equipment without owning them.
Related terms
Landlord: A landlord is the owner of a property who rents it out to tenants in exchange for rent payments.
Lease agreement: A lease agreement is a legally binding contract between a landlord and tenant that outlines the terms and conditions under which a property will be rented.
Rental income: Rental income refers to the money received by landlords from tenants as payment for using their properties. It can be an important source of revenue for property owners.
"Rent" appears in:
Study guides (1)
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.