Renting

Renting, also known as hiring or letting, is an agreement where a payment is made for the temporary use of a good, service or property owned by another. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership.

Kaohsiung Mosque First Building
Notice of renting availability of a building in Kaohsiung, Taiwan.

Reasons for renting

There are many possible reasons for renting instead of buying, for example:

  • In many jurisdictions (including India, Spain, Australia, United Kingdom and the United States) rent used in a trade or business is tax deductible, whereas rent on a dwelling is not tax deductible in most jurisdictions.
  • Financial inadequacy, such as renting a house when one is unable to buy it. One may not wish to pay the full price that ownership would need, allowing for smaller payments over a specified period of time.
  • Reducing financial risk due to depreciation and transaction costs, especially for real estate which might be needed only for a short amount of time.
  • When something is needed only temporarily, as in the case of a special tool, a truck or a skip.
  • When something is needed that may or may not be already owned but is not in proximity for use, such as renting an automobile or bicycle when away on a trip.
  • Needing a cheaper alternative to buying, such as renting a movie: a person is unwilling to pay the full price for a movie, so they rent it for a lesser price, but give up the chance to view it again later.
  • The tenant may want to leave the burden of upkeep of the property (mowing the lawn, shovelling snow, etc.) to the owner or his agents.
  • There is no need to worry about lifespan and maintenance.
  • Renting keeps off-balance-sheet the debt that would burden the balance sheet of a company in case the property would have been bought.
  • Renting is good for the environment if products are used more efficiently by maximizing utility rather than being disposed, overproduced and under utilized.[1]

Growth of rental industry

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.[2] According to a poll by YouGov, 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.[3]

It has been widely reported that the financial crisis of 2007–2010 may have contributed to the rapid growth of online rental marketplaces, such as erento, as consumers are more likely to consider renting instead of buying in times of financial hardship.[4] Environmental concerns, fast depreciation of goods, and a more transient workforce also mean that consumers are increasingly searching for rentals online.[2]

A 2010 US survey found 27% of renters plan to never buy a home.[5]

Rental investment

Net income received, or losses suffered, by an investor from renting of one or two properties is subject to idiosyncratic risk due to the numerous things that can happen to real property and variable behavior of tenants.[6]

Rental agreements

There is typically an implied, explicit, or written rental agreement or contract involved to specify the terms of the rental, which are regulated and managed under contract law.

Examples include letting out real estate (real property) for the purpose of housing 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 a tenant, paying rent to the owner of the property, often called a landlord (or landlady). The real estate rented may be all or part of almost any real estate, such as an apartment, house, building, business office(s) or suite, land, farm, or merely an inside or outside space to park a vehicle, or store things all under Real estate law.

The tenancy agreement for real estate is often called a lease, and usually involves specific property rights in real property, as opposed to chattels.

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.

The time use of a chattel or other so called "personal property" is covered under general contract law, but the term lease also nowadays extends to long term rental 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 a hotel, using a computer in an Internet cafe, or riding in a taxicab (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 help guarantee that they are brought back, one or more of the following applies:

  • one shows an identity document
  • one signs a contract; any damage already present when renting may be noted down to avoid that the renter is blamed for it when the good is returned
  • one pays a damage deposit (a refundable fee that may be used in part to pay for damage caused by the renter)

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 as operated 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 out books from a library could be considered renting when there is a fee per book. However the term lending is more common.

Leasing

Long term rental of personal property (for periods longer than a year) is known as leasing. Leasing is usually used for high-value capital equipment, both in business and by consumers (particularly for cars). A leasing agreement which transfers most of the risks and rewards of ownership, usually for the life of the asset, is known as a finance lease. A leasing agreement which is not a finance lease is known as an operating lease.

Rent to own

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

  • Rent-to-own, a term used in the United States for rental of furniture or appliances. The term is also used in the US for real estate transactions, where the tenant has an option to purchase the property at a fixed price at a specified future time. Such arrangements are also known as lease-option, lease-to-own or lease to purchase option.
  • Hire purchase, used in the UK and other countries for the purchase of cars, other consumer equipment and business equipment. The term lease-purchase is also used.
  • Closed-end leasing, used in the US and Canada for the leasing of cars. Unlike in hire purchase, the asset is sold at its residual value at the end of the term, rather than for a nominal amount.

See also

References

  1. ^ "Why buy it when you can rent it?", The Observer, 2004-06-27. Retrieved on 2009-09-09.
  2. ^ a b Schenker, Jennifer. "Tough Times? Rent, Don't Buy, with Erento", BusinessWeek, 2008-08-22. Retrieved on 2009-10-01.
  3. ^ Pollok, Murray. News Highlights, International Rental News, 2009-04-01. Retrieved on 2009-09-01.
  4. ^ Moshiri, Maryam. "Is renting the new buying?", BBC Breakfast News, 2009-04-27. Retrieved on 2009-05-01.
  5. ^ Boston Metro, 19 August 2010, p 6. Citing survey by Trulia.com.
  6. ^ Tara Siegel Barnard (March 29, 2013). "Rental Investment May Seem Safer Than It Really Is". The New York Times. Retrieved March 30, 2013.
  7. ^ a b "If you want it, rent it ... from a 'must have' handbag to an Aston Martin", The Observer, 2009-01-04. Retrieved on 2009-09-09.
1988 Paris–Roubaix

The 1988 Paris–Roubaix was the 86th edition of the Paris–Roubaix cycle race and was held on 10 April 1988. The race started in Compiègne and finished in Roubaix. The race was won by Dirk Demol of the AD Renting team.

AD Renting (cycling team)

AD Renting (All-Drie Renting), often simply called ADR, was a Belgian professional cycling team that existed from 1987 to 1989.

Air charter

Air charter is the business of renting an entire aircraft (i.e., chartering) as opposed to individual aircraft seats (i.e., purchasing a ticket through a traditional airline).

Brand licensing

Licensing means renting or leasing of an intangible asset. It is a process of creating and managing contracts between the owner of a brand and a company or individual who wants to use the brand in association with a product, for an agreed period of time, within an agreed territory. Licensing is used by brand owners to extend a trademark or character onto products of a completely different nature.Examples of intangible assets include a song ("Somewhere Over The Rainbow"), a character (Donald Duck), a name (Michael Jordan), or a brand (The Ritz-Carlton). An arrangement to license a brand requires a licensing agreement. A licensing agreement authorizes a company which markets a product or service (a licensee) to lease or rent a brand from a brand owner who operates a licensing program (a licensor).

Car rental

A car rental, hire car, or car hire agency is a company that rents automobiles for short periods of time, generally ranging from a few hours to a few weeks. It is often organised with numerous local branches (which allow a user to return a vehicle to a different location), and primarily located near airports or busy city areas and often complemented by a website allowing online reservations.

Car rental agencies primarily serve people who require a temporary vehicle, for example, those who do not own their own car, travelers who are out of town, or owners of damaged or destroyed vehicles who are awaiting repair or insurance compensation. Car rental agencies may also serve the self-moving industry needs, by renting vans or trucks, and in certain markets, other types of vehicles such as motorcycles or scooters may also be offered.

Alongside the basic rental of a vehicle, car rental agencies typically also offer extra products such as insurance, global positioning system (GPS) navigation systems, entertainment systems, mobile phones, portable WiFi and child safety seats.

Estate agent

An estate agent is a person or business that arranges the selling, renting, or management of properties and other buildings. An agent that specialises in renting is often called a letting or management agent. Estate agents are mainly engaged in the marketing of property available for sale, and a solicitor or licensed conveyancer is used to prepare the legal documents. In Scotland, however, many solicitors also act as estate agents, a practice that is rare in England and Wales.

The estate agent remains the current title for the person responsible for the management of one group of privately owned, all or mostly tenanted properties under one ownership. Alternative titles are Factor, Steward, or Bailiff, depending on the era, region, and extent of the property concerned.

Leasehold estate

A leasehold estate is an ownership of a temporary right to hold land or property in which a lessee or a tenant holds rights of real property by some form of title from a lessor or landlord. Although a tenant does hold rights to real property, a leasehold estate is typically considered personal property.

Leasehold is a form of land tenure or property tenure where one party buys the right to occupy land or a building for a given length of time. As lease is a legal estate, leasehold estate can be bought and sold on the open market. A leasehold thus differs from a freehold or fee simple where the ownership of a property is purchased outright and thereafter held for an indeterminate length of time, and also differs from a tenancy where a property is let (rented) on a periodic basis such as weekly or monthly.

Until the end of the lease period (often measured in decades or centuries; a 99-year lease is quite common) the leaseholder has the right to remain in occupation as an assured tenant paying an agreed rent to the owner. Terms of the agreement are contained in a lease, which has elements of contract and property law intertwined.

The term estate for years may occasionally be used. This refers to a leasehold estate for any specific period of time (the word "years" is misleading.) An estate for years is not automatically renewed.

Colloquially, "lease" and "leasing" are often a formalization of a longer, specific period as compared with a "rental" that created a tenancy at will, terminable or renewable at the end of a short period.

Legal plunder

Legal plunder, is the act of appropriating, under the laws, the property of others. This was coined by Frédéric Bastiat, most famously in his 1850 book The Law. It has since become a concept in libertarian thought, and has been used similarly by others, including Daniel Lord Smail.Today it is the appropriation of the assets of another person by power groups through rules of public law that violate the principle of equality and the Constitution.

Throughout history there are many examples of legal plunder as the political and economic regimes that have followed: partial legal plunder are the result of tyranny and protectionism or universal legal plunder the result of socialism or communism.

List of teams and cyclists in the 1987 Vuelta a España

For the 1987 Vuelta a España, the field consisted of 179 riders; 88 finished the race.

List of teams and cyclists in the 1989 Giro d'Italia

The 1989 Giro d'Italia was the 72nd edition of the Giro d'Italia, one of cycling's Grand Tours. The field consisted of 197 riders, and 141 riders finished the race.

Peer-to-peer renting

Peer-to-peer renting refers to the process of an individual renting an owned good, service, or property to another individual. It is also referred to as Person-to-Person rental, P2P renting, Collaborative Consumption, the sharing economy and Product Service System. The term is mainly used to describe online enabled rental transactions between individuals.

Post office box

A post office box (commonly abbreviated as P.O. box, or also known as a postal box) is a uniquely addressable lockable box located on the premises of a post office station.

In some regions, particularly in Africa, there is no door to door delivery of mail; for example, in Kenya. Consequently, renting a PO box has traditionally been the only way to receive mail in such countries. However, some countries, like Egypt, have introduced mail home delivery.Generally, post office boxes are rented from the post office either by individuals or by businesses on a basis ranging from monthly to annual, and the cost of rent varies depending on the box size. Central business district (CBD) PO boxes are usually more expensive than rural PO boxes.

In the United States, the rental rate used to be uniform across the country. Now, however, a postal facility can be in any of seven fee groups by location; in addition, certain customers qualify for free box rental, usually because the Postal Service does not offer carrier-route delivery to their physical addresses.

In the United Kingdom, Royal Mail PO boxes are often little more than pigeon-holes in the secure section of a sorting office and are accessible only by staff. In such cases, the renter of the PO box will be issued with a card showing the PO box number and delivery office name and must produce this to the desk staff when collecting mail. For an additional fee, the Royal Mail will deliver received items to the renter's geographical address.

Some private companies (e.g., United Parcel Service and commercial mail receiving agencies) offer similar services of renting a mailbox in a public location. The difference is that mail sent there is addressed to a street address (along with the private box number), instead of just addressed to "PO Box CSX".

Redbox

Redbox Automated Retail LLC is an American company specializing in DVD, Blu-ray, 4K UHD and video game rentals via automated retail kiosks. Redbox kiosks feature the company's signature red color and are located at convenience stores, fast food restaurants, grocery stores, mass retailers, and pharmacies.

As of the end of November 2012, Redbox had over 42,000 kiosks at more than 34,000 locations. As of September 2016, Redbox had 51.8% market share of the physical rental market.

Rent-to-own

Rent-to-own, also known as rental-purchase, is a type of legally documented transaction under which tangible property, such as furniture, consumer electronics, motor vehicles, home appliances, real property, and engagement rings, is leased in exchange for a weekly or monthly payment, with the option to purchase at some point during the agreement.

A rent-to-own transaction differs from a traditional lease, in that the lessee can purchase the leased item at any time during the agreement (in a traditional lease the lessee has no such right), and from a hire purchase/installment plan, in that the lessee can terminate the agreement by simply returning the property (in a hire purchase the buyer has a limited time, if any, to cancel the agreement).The usage of rent-to-own transactions began in the United Kingdom and Europe, and first appeared in the United States during the 1950s and 1960s. While rent-to-own terminology is most commonly associated with consumer goods transactions, the term is sometimes used in connection with real estate transactions. The newest law coming into effect known as "Physical control" is a progression towards owning something such as a parcel of land.

Room and board

Room and board describes a situation where, in exchange for money, labor or other considerations, a person is provided with a place to live as well as meals on a comprehensive basis. It commonly occurs as a fee at colleges and universities; it also occurs in hotel-style accommodation for short stays.

"Room" refers to a private bedroom provided; "board" may refer to the food being provided, or alternatively, the table on which food is served.

With a room and board arrangement, the renter has a private bedroom and shares the rest of the house with the person renting out the room. This is different from renting where the renter has private living areas, including a bedroom, bathroom and kitchen.

Two commonly encountered boards are:

Half Board, where the host provides only a breakfast and dinner meals.

Full Board, where the host provides all three daily meals.Another option is:

Bed and breakfast, literally, a place to sleep and where breakfast is provided.

Surrogacy

Surrogacy is an arrangement, often supported by a legal agreement, whereby a woman agrees to become pregnant, carry the pregnancy to due term, and give birth to a child or children, all of this for another person or persons, who are or will ultimately become the parent(s) of the newborn child or children.

People may seek a surrogacy arrangement when pregnancy is medically impossible, when pregnancy risks present an unacceptable danger to the mother's health, or when a man alone or a male couple wishes to have a child. In these arrangements, monetary compensation may or may not be involved. Receiving money for the arrangement is considered commercial surrogacy; receiving no compensation beyond reimbursement of reasonable expenses is altruistic. The legality and cost of surrogacy varies widely between jurisdictions, sometimes resulting in problematic interstate or international surrogacy arrangements.

Laws of some countries restrict or regulate surrogacy and its consequences. Those wanting to seek a surrogacy arrangement who, however, live where it is banned may travel to a jurisdiction that permits it. (See surrogacy laws by country and fertility tourism.)

Video rental shop

A video rental shop/store is a physical retail business that rents home videos such as movies, prerecorded TV shows, video game discs and other content. Typically, a rental shop conducts business with customers under conditions and terms agreed upon in a rental agreement or contract, which may be implied, explicit, or written. Many video rental stores also sell previously-viewed movies and/or new, lots of unopened movies.

In the 1980s, video rental stores rented VHS and Beta tapes of movies, although most stores dropped Beta tapes when VHS won the format war late in the decade. In the early 2000s, video rental stores began renting DVDs, a digital format with higher resolution than VHS; DVDs eventually replaced videocassettes.

Vivid Entertainment

Vivid Entertainment Group is an American pornographic film production company, featuring internet content.

Yacht charter

Yacht chartering is the practice of renting, or chartering, a sailboat or motor yacht and travelling to various coastal or island destinations. This is usually a vacation activity, but it also can be a corporate event.

There are two main kinds of charter: bareboat and skippered. Bareboat charters involve a person renting a boat and skippering it themselves. The other way is gathering up a group and renting the yacht with them. Most bareboat companies also offer courses to teach basic seamanship and prepare people for bareboat chartering. These companies also sometimes provide skippered charters, meaning that boat comes with a skipper but no additional crew.Skippered charter means the yacht comes with a crew. This can be anything from a 35-foot boat with a two-person team serving as captain and chef to a 300-foot boat with a squad of 30 or more crew members including stewardesses, engineers, mates, deckhands, scuba dive masters, and the like.

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