A lessor allows another party to use their property in exchange for regular payments
A lessor is one of two parties in a lease agreement. Under this type of agreement, the lessor is the party — usually a person or business — who owns the property. In exchange for regular payments, the lessor allows another party (the lessee) to use it. Additionally, if the lessee fails to make their agreed-upon payments, mistreats the property, or otherwise violates the terms of the lease agreement, the lessor usually has the right to end the contract early and take back the property.
Example:
A situation where lease agreements are common is with vehicles. Rather than buying a vehicle, some people prefer to lease one. The lessor is the company that owns the vehicle and leases it out to someone else. In exchange, the lessee makes a monthly payment to the lessor.
To make it official, the two parties sign a lease agreement that states each of their rights and responsibilities.
What’s important here?
Even though the lessor has given someone else the right to use their property, they’re still the legal owner and maintain certain rights. In most cases, a lease agreement only gives the lessee the right to use the property for a certain amount of time before signing a new agreement.
