lessor

(noun)

The owner of property that is leased.

Related Terms

Examples of lessor in the following topics:

  • Overview of Lease Accounting

    • A lease is a contract calling for the lessee (user) to pay the lessor (owner) for use of an asset for a specified period.
    • The asset remains on the lessor's books as an owned asset.
    • The lessor records depreciation expense over the life of the asset.
    • These are permanently affixed to the property and revert to the lessor at the termination of the lease.
    • Security Deposits: Nonrefundable security deposits:deferred by the lessor as unearned revenue; capitalized by the lessee as a prepaid rent expense until the lessor considers the deposit earned.

  • Being Aware of Off-Balance-Sheet Financing

    • For example, if a company defaults on the rental payments required by an operating lease, the lessor could repossess the assets or take legal action, either of which could be detrimental to the success of the company.