Landlord and tenant

Lessor is the owner of an asset who has decided to assign the use of that property to another person (tenant) in exchange for money. Lessee is the person who has the right to use an asset that belongs to another person (landlord) in exchange for remuneration.

Both the landlord and the tenant can be natural or legal persons. The leasing process is formalized through a lease or rental agreement. This contract establishes the conditions, duties and rights of the parties involved.

The objective of the lessor is to have a profit on an asset that he owns, while the lessee seeks to satisfy a need by enjoying an asset that he does not own.

LessorLessee
DefinitionPerson who temporarily transfers an asset to another person in exchange for a payment.Person who pays remuneration to be able to enjoy a good temporarily.
Rights
  • Collect the established amount on time.
  • Collect damages caused by the landlord if so stipulated in the contract.
  • Cancel the contract in case of violating any of the clauses.
  • Enjoy the good during the term of the contract.
  • Demand the necessary conditions or repairs to enjoy said property.
Obligations
  • Give up the good for as long as it has been established.
  • Maintain the good condition and operation of the leased goods or services.
  • Make the payment on time to be able to enjoy the good.
  • Deliver the property under the established conditions.
  • Do not destroy or modify the leased property.
  • Allow the landlord to review the property.
ExamplesJuan has a house on the beach and has decided to rent it to tourists for the holidays.María has decided to rent a house to live in while she is studying at university.

What is a landlord?

It is the natural or legal person that temporarily lends something that belongs to another person in exchange for an agreed payment.

To reach this agreement, there must be a lease or rental contract specifying the conditions for the use and exploitation of the property during the stipulated time.

This contract must establish the obligations and rights that the parties involved must have, if not complying, the contract could be terminated and, generally, the property returns to the tenant. In addition, the two parties must agree at the time of giving continuity to the contract.

The lessee has the obligation to assign this asset and demand payment in return periodically or as established in the contract.

When the object of the lease is a property, the payment is usually monthly. When it comes to vehicles, for example, generally a single payment is made, depending on the hours or days that it is used

In other cases, a single payment is made that gives the right to use the property for a time that has been established together with the conditions of use and return, thus avoiding mishaps at the time of delivery.

What is a tenant?

It is the natural or legal person who has the right to temporarily enjoy an asset in exchange for a payment.

When the rental property is a house, the landlord is the owner of the house and the tenant is the tenant, who pays a rent to enjoy the property.

The conditions, assiduity and continuity of the lease must be established in a contract that has been accepted by the two parties involved.

It is the responsibility of the tenant to make the payment in a punctual and responsible manner in order to be able to use or continue to enjoy the property that he is renting. If the payment or some agreed conditions are breached, the contract can be terminated and the property returns to the landlord.

For this reason, it is important that the contract indicates what may happen in case of damage or misuse of the leased object, specifying who is responsible for the expenses that arise.

Generally, the contract establishes the payment of a fine by the tenant in case of damage, or insurance is usually included with an additional cost so that the tenant is the one who covers these types of situations.

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