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Renting, also known ashiring[1] orletting,[2] is an agreement where a payment is madefor the use of a good, service orproperty owned by another over a fixed period of time. To maintain such an agreement, a rental agreement (orlease) is signed to establish the roles and expectations of both thetenant andlandlord. There are many different types of leases.[3] The type and terms of a lease are decided by the landlord and agreed upon by the renting tenant.
Various types of rent are referenced inRoman law: rent (canon) under the long leasehold tenure ofEmphyteusis; rent (reditus) of a farm; ground-rent (solarium); rent of state lands (vectigal); and the annual rent (prensio) payable for thejus superficiarum or right to the perpetual enjoyment of anything built on the surface of land.[4]
There are many possible reasons for renting instead of buying, for example:
Short-term rental of all sorts of products (excluding real estate and holiday apartments) already represents an estimated €108 billion ($160 billion) annual market in Europe and is expected to grow further as the internet makes it easier to find specific items available for rent.[6] According to a poll byYouGov, 76% of people looking to rent would go to the internet first to find what they need; rising to 88% for those aged 25–34.[7]
TheGreat Recession may have contributed to the rapid growth of online rental marketplaces, such as erento, since consumers are more likely to consider renting instead of buying in times of financial hardship.[8] Environmental concerns, fast depreciation of goods, and a more transient workforce also mean that consumers are increasingly searching for rentals online.[6]
A 2010 US survey found 27% of renters plan to never buy a home.[9]
Net income received, or losses suffered, by an investor from renting of properties is subject toidiosyncratic risk due to the numerous things that can happen to real property and variable behavior of tenants.[10]
There is typically an implied, explicit, or writtenrental agreement orcontract involved to specify the terms of the rental, which are regulated and managed undercontract law.
Examples include letting outreal estate (real property) for the purpose ofhousing tenure (where the tenant rents a residence to live in),parking space for a vehicle(s), storage space, whole or portions of properties for business, agricultural, institutional, or government use, or other reasons.
When renting real estate, the person(s) or party who lives in or occupies the real estate is often called atenant, payingrent to the owner of the property, often called alandlord (or landlady). The real estate rented may be all or part of almost any real estate, such as anapartment,house,building, business office(s) or suite, land, farm, or merely an inside or outside space to park a vehicle, or store things all underReal estate law.
The tenancy agreement for real estate is often called alease, and usually involves specific property rights inreal property, as opposed tochattels.
In India, the rental income on property is taxed under the head "income from house property". A deduction of 30% is allowed from total rent which is charged to tax.
Thetime use of a chattel or other so called "personal property" is covered under generalcontract law, but the termlease also nowadays extends to long termrental contracts of more expensive non-Real properties such as automobiles, boats, planes, office equipment and so forth. The distinction in that case is long term versus short term rentals. Some non-real properties commonly available for rent or lease are:
In various degrees, renting can involve buying services for various amounts of time, such as staying in ahotel, using acomputer in anInternet cafe, or riding in ataxicab (some forms of English use the term "hiring" for this activity).
As seen from the examples, some rented goods are used on the spot, but usually they are taken along; to helpguarantee that they are brought back, one or more of the following applies:
If the customer has a credit account with the rental company, they may rent over several months (or years) and will receive a recurring or continuation invoice each rental period until they return the equipment. In this case deposits are rarely required.
In certain types of rental (sometimes known asoperated or wet rental) the charge may be calculated by the rental charge + timesheets of operators or drivers supplied by the rental company to operate the equipment. This is particularly relevant for crane rental companies.
Sometimes the risk that the good is kept is reduced by it being a special model or having signs on it that cannot easily be removed, making it obvious that it is owned by the rental company; this is especially effective for goods used in public places, but even when used at home it may help due to social control.
Persons and businesses that regularly rent goods from a particular company generally have an account with that company, which reduces the administrative procedure (transaction costs) on each occasion.
Signing outbooks from alibrary could be considered renting when there is a fee per book. However the termlending is more common.
Rental ofpersonal property orreal property for periods often longer than a year, which is governed by the signing of alease, is known as leasing. Leasing is usually used for high-value capital equipment, both in business and by consumers. A lease in which the renter benefits from an increase in value of the asset is known as afinance lease. A leasing agreement which is not a finance lease is known as anoperating lease. In housing, when a tenant rents an apartment but only pays for their room and the common space is alease-by-room arrangement.
A rental agreement may provide for the renter or lessee to become the owner of the asset at the end of the rental period, usually at the renter's option on payment of a nominal fee. Such arrangements may be known as
One or more of the preceding sentences incorporates text from a publication now in thepublic domain: Renton, Alexander Wood (1911). "Rent". InChisholm, Hugh (ed.).Encyclopædia Britannica. Vol. 23 (11th ed.). Cambridge University Press. p. 102.| By location | |
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