The need to give for temporary use a particular object, item, property or land arose a very long time ago. In order to more or less reasonable and logical approach to this issue, various types of rents have been developed. Their common essence lies in the fact that the owner of some property voluntarily transfers it to another person. Moreover, the ownership right still does not disappear. There are some obligations of both parties to the transaction, which can vary significantly depending on the subject of the contract and the characteristics of the relationship.
Landlord and tenant
In order to clearly distinguish between the direct owner and the person who will use a certain object, the corresponding names were invented. So, the lessor is the person (or company) to whom the subject of the contract belongs. He has the desire and ability to transfer it to another person. Here it is called a tenant. After the transfer of the subject, certain obligations are imposed on both parties, but also special rights are granted. Different types of rental property mean different approaches to the formulation of these elements. For example, you cannot apply the requirements for renting real estate for transport or software. The converse is also true.
Responsibilities and Obligations
As mentioned above, different types of leases require a different approach to the peculiarities of the relationship between the parties. But if you summarize all the information, you can get a few basic points. So, the lessor is obliged, upon the conclusion of the contract, to provide the agreed object for use by the lessee. To this he may be given the previously agreed period. The facility must comply with all stated requirements. In turn, the tenant is obliged to carefully use the object of the contract, to make a payment for use exactly on time upon its completion, to return everything to the lessor intact. This may seem a bit complicated. To better understand the features, we take the most ordinary rental apartment. So, the landlord must give the keys to the apartment, and she herself must look exactly as it was previously described. The tenant can live in the apartment, as it suits him, but it should maintain approximately the same appearance as at the time of transfer. You can not do major repairs, rearrangements, redevelopment, and so on without the permission of the owner. Moreover, once a month (or another period) he must pay for the right to live in an apartment. Assume a rental period of 1 year. That is, exactly 12 months after the signing of the contract, the tenant must move out, leaving everything as it was.
Rent
Types of lease of this type imply a short-term transfer of the object of the contract for use to the lessee. Most often, firms do this. That is, the transaction will be concluded between a legal entity and an individual. The deadline is set separately, based on preliminary agreements, but it rarely exceeds 1 year. An object may be only movable property. In addition, the tenant does not receive sublease rights. It is possible to terminate the contract before the expiration date, but after prior notice to the lessor (usually 10 days before the termination). The contract is made in writing. If it is terminated before the end of the term, the difference in payment is returned. The simplest examples of this that were common before: rental of video cassettes, disks, cartridges for game consoles and so on.
Transport and freight
These types of rents relate to all kinds of vehicles. In the standard version, only the car itself is transmitted (tractor, combine, and so on). If such a subspecies as freight is used, then along with the transport, the driver is also transferred for it. But to pay for the services of this person separately is not necessary. The tenant pays only a fixed amount to the lessor, and he alone calculates the driver’s salary. Examples of this type of transaction are those modes of transport that are used at weddings. That is, a deadline has been set, for example, it will be 6 hours, during which the lessor has the right to order the driver where to go (within reason). For this, he, in turn, has already paid. Immediately upon the expiration of the contract, the driver can simply turn around and leave. Most often, they provide for the possibility of extending the transaction for a while. It should be borne in mind that the driver is a living person with his natural needs (eat, go to the toilet, sleep, relax, and so on).
The property
Various types of rental premises are the most popular and common type of contract concluded between the two parties. This includes the right to use both an apartment and non-residential real estate, its part and so on. For example, a certain company built a large house, the ground floor of which is planned to be used to house various shops or cafes. This company does not plan to sell real estate, but wants to receive money for it. As a result, it leases apartments to individuals, and parts of the ground floor to companies that are ready to place their sales or service points there. A characteristic feature is that the land that is under real estate also automatically goes into rent, whether the lessor wants it or not.
Company
Not only empty rooms are rented. Also, whole industrial complexes with all equipment, machinery and so on can be leased. Types of land lease imply the transfer of only the territory itself, but here everything is included. In fact, the tenant becomes the owner of the whole enterprise, although the direct ownership remains with the lessor. The conditions can be very different, ranging from a fixed fee and ending with payments based on the results of the company. This should be agreed upon separately. For example, there is a certain company that produces plastic windows. The current owner does not have the time, desire, experience or knowledge to properly manage all this. He decides to find a person who rents out the whole complex as a whole, and asks for it 10% of net income. A sufficiently profitable transaction that does not require any effort from the direct owner to make a profit. Naturally, there is a risk that the company will go bankrupt, but here it all depends on the right choice of a tenant.
Leasing
There are a huge number of forms that rent can take. The types of leases “leasing” mean that the owner transfers an object for use to another person (most often they are vehicles or equipment). It seems that everything is as usual, if you do not take into account the fact that the tenant has the right to redeem the subject of the contract. For example, one firm “B” needs a tractor. It is produced by company “A”. Firm "B" agrees with "A", which takes the necessary transport for rent on leasing terms. This means that the usage fee will include not only a fixed amount of rent, but also part of the value of the subject of the contract. At the end of the term, the tractor completely becomes the property of the company “B” if all payments were made on time. This is a mixture between a loan and a classic rental, which is very common in large companies that do not want to pull large amounts out of circulation at one time, but need a certain technique. It may seem that this is not very profitable, but in fact, if you calculate the profit that can be obtained by using the cost of the equipment for the entire period of its use, it turns out that there is still a benefit, and it is very significant. For example, the same tractor costs 1 million rubles. If the company immediately pays this amount, then in the future it will not be able to receive income in the amount of 10 million. A tractor lease will cost 2 million for the same period. We see that the direct benefit will be 8 million.
Land
All types of land leases are generally identical to those concluded for obtaining the right to use real estate. However, there are some differences that, under certain conditions, can play a significant role. So, if the land plot is located on the border with water, which belongs to public facilities, the tenant agrees not to restrict access to water for any citizens. For example, there is a certain piece of beach that is rented. The owner receives a fixed amount for this. The tenant does not have the right to somehow prohibit any person from visiting the beach, but can create infrastructure, put sunbeds, equip a store and so on. That is, he will not receive income from the beach directly, but indirectly, in the process of shopping by the beach visitors. There are other features that are directly related to each other - the lease term and its purpose. Types of land lease for the arrangement of a summer cottage do not imply the possibility of building a retail outlet on it. The same is true in reverse order. That is, it is impossible to build up the territory that is intended for the shopping center with housing or to plow it to get a crop. The term also depends on this, which, in principle, can be extended without much effort at the end.
Sublease
Many types of leases do not imply the possibility that the tenant will allow third parties to use the property. However, there are also varieties for which this is perfectly acceptable. Such actions are called subleases. Its essence lies in the fact that the tenant transfers the already leased object to third parties. That is, it becomes a landlord. But the actual ownership remains with the owner anyway. For example, there is a very large room. The owner does not want to independently look for potential tenants. He rents all the real estate entirely to another person, and already, having paid the agreed amount, he is looking for tenants, who in this case will be called sub-tenants.
Intangible assets
In many cases, the types of leases relate to real estate, equipment, machinery, transport and so on. But this is only part of everything that can be transferred for temporary use. So, for example, similar conditions apply to software, trademarks, and similar items that do not exist in tangible terms.
Total
The main types of rent were listed above. This is not a complete list, but for a general understanding of the essence of the issue it is quite enough. Thanks to the opportunities that rent provides, the economic activity of the population is significantly increased. For example, a person has equipment for production, but he does not have money to buy or build an industrial building. Instead of just waiting, he is looking for an opportunity to rent the right territory for rent. Another person who has such a property absolutely does not understand what can be done with it, but wants to make a profit. After negotiations, both sides come to an agreement that suits them. One person receives real estate for use, starts production and begins to make a profit. The second one does not worry about anything and is simply content with a fixed fee. Everyone is happy, and the economy has improved.