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Leasing Expanded

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Rent vs. lease

Both leases and rentals allow one party, the lessee / rentee, to use an asset owned or controlled by another party, the lessor / rentor. The difference, lease agreements cover a long period of time, while rental agreements do not.

For example, a lessor may lease a building from its owner and sublease individual units to sub-lessees.

As far as the guidance is concerned, no difference between rent and lease exists.

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