What is the difference between leasing and renting?

The main difference between leasing and renting is the lessee's right to purchase the property at its residual value upon expiration of the agreement term. In renting, the tenant does not have such an option.

What is the difference between leasing and renting

• In leasing, two agreements are concluded: one between the seller and the lessor, and one between the lessor and the lessee. In renting, there is only one agreement — between the landlord and the tenant.
• In leasing, new or used property is transferred to the lessee by a legal entity. In renting, a car, equipment, special machinery, etc. may belong to an individual.
• Leasing for business differs from renting in the allocation of liability for property damage: all expenses in the event of damage are borne by the lessee, while in renting they are borne by the landlord.
• Anyone may act as a landlord. Only a leasing company may engage in leasing.

Another difference between leasing and renting is accelerated depreciation — this is its main advantage. The landlord does not receive any tax benefit.