What is a Lessor?

A lessor is the owner of leased property. The lessor allows a lessee to use the property in exchange for periodic rental payments. These payments are usually made in accordance with a monthly payment schedule, but may also be paid out in a lump sum. A leasing arrangement is defined in a lease agreement, which can include a number of special terms, such as the ability of the lessee to extend a lease or to buy the leased asset at a bargain price.

Examples of Lessors

Here are several examples of lessors, operating within different businesses:

Property lessor. A lessor might rent out a commercial property, residential property, or a vacation home.
Equipment lessor. A lessor might rent out vehicles, construction equipment, or office equipment.
Technology lessor. A lessor might rent out its software as a service, or a lessor might lease out server space.
Transportation lessor. A lessor might rent out aircraft, ships, or railcars.