What is a Long-Term Lease?
A lease is the agreement you enter into when you rent an apartment or lease a car; the lease usually consists of a written contract that sets forth the amount of rent you will pay, the term during which you are responsible for paying it, and other terms. A long-term lease is simply a lease in which the agreement term is ten years or longer. A long-term lease is typically an option used for commercial real estate rentals – your apartment or home rental should not be subject to a long-term lease, unless under very special circumstances. A long-term lease has certain advantages and disadvantages. Locking the rent into a stable price can be either good or bad. Rent generally trends upwards, so a long-term lease can potentially save you money by locking you into a set price for years to come. However, if the market crashes and rent drops suddenly, you’ll still be responsible for the same amount of rent. Also, if you want to move your business to another location, you may need to choose betw
A lease is a contract in which a merchant gives you the right to use his good or service in exchange for an amount of money. Essentially, you are agreeing to pay money for the right to use a thing, whether it is a car, washing machine, work of art, etc. You do not own the object you are the lessee. The merchant retains ownership of the leased thing unless your contract includes an option to buy and you exercise this right by buying the object you rented. A long-term lease is a lease which lasts for four months or more. Leases for less than four months can be considered long-term leases where a renewal clause extends the lease past four months.
