Leasing

Leasing is the process whereby a company can gain use of certain fixed assets which it should be given a series of periodic contractual payments tax deductible. Bearings are recipients of services or assets for rent and the landlord is the owner of the assets. And called the relationship between tenant and landlord to rent and can be for a period or indefinitely (called the lease). Called to consider renting leasing. Gross rent is when the tenant pays a fixed amount of rent and the owner pays fees regularly, which has all property of lawnmowers and washing machines for bags and jewelry. [1]

Under normal circumstances, the landlord is free to do whatever they want with their property, including destruction or transfer of the estate of the tenant. But if the owner fails to give possession to another (ie the tenant) then any interference with the peaceful use of property by the tenant in lawful possession is illegal.

Similar principles apply to real and personal property, although terminology is different. Similar principles apply to sub-lease, this lease by the tenant is in possession of a sub-tenant. You have the right to sublicense lease specifically prohibited in the main lease.


Benefits

Companies may have economic advantages of rental properties are significant:

* Hire a less capital intensive than purchasing, and if so, companies and capital constraints are growing faster than rental properties, as can be when buying property directly.
* Capital assets may change its value. Rental risk changes to the landlord, but if the property market has shown steady growth over time, and businesses who rely on leased property is a victim of capital gains.
* As investments are made with the lease, is the formation of new companies. Moreover, unemployment has fallen in this country.
* Leasing can provide more flexibility in work which is expected to grow or move a relatively short term as the tenant is not required generally to renew the lease at the end of his term.
* In some cases, leasing is the only viable option for small businesses wishing to locate a large office building in a narrow space standards.
* Consumption of fixed capital and other financial and tax treatment of regular reporting of expenses. These payments are renting can be deducted from income when calculating taxable profit at the end of the fiscal period of the records.


Of the companies can rent the property and risks are significant:

* You can lease the net transfer of all or a portion of the maintenance costs of the tenant.
* If circumstances require that businesses must change their operations significantly, it can be costly or difficult to terminate the lease until the end of the period. In some cases you may be able to work under-estate is no longer necessary, but it can not recover the cost of the original lease, and in any case require the consent of the original landlord. Legal tactical reasons, it is usually suitable for tenants default on contracts. Book value loss of small and any litigation can usually settle on favorable terms. This represents an improvement in the situation for these companies to own their own property. Although it may be easier for companies to sell the property if he has time and forced to obtain lower prices in many cases can seriously affect book value.
* If the operation succeeds, the landlord may require a higher rent when the leases to be renewed. In case of equal business based on the use of such property, especially the landlord is the great advantage of the tenant in the negotiations.