Renting is an agreement where a payment is made for the temporary use of a good, service or property Property is any physical or intangible entity that is owned by a person or jointly by a group of persons. Depending on the nature of the property, an owner of property has the right to consume, sell, rent, mortgage, transfer, exchange or destroy their property, and/or to exclude others from doing these things. Important widely recognized types of 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 from lawnmowers and washing machines to handbags and jewellry.^[1]

Reasons for renting

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

• In many jurisdictions (including India India, officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with 1.18 billion people, and the most populous democracy in the world. Mainland India is bounded by the Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal on the, Spain Spain (pronounced /ˈspeɪn/ spayn; Spanish: España, pronounced [esˈpaɲa] ( listen)), officially the Kingdom of Spain (Spanish: Reino de España), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula.[note 6] Its mainland is bordered to the south and east by the Mediterranean Sea except for, Australia For at least 40,000 years before European settlement in the late 18th century, Australia was inhabited by indigenous Australians, who belonged to one or more of the roughly 250 language groups. After sporadic visits by fishermen from the immediate north and discovery by Dutch explorers in 1606, Australia's eastern half was claimed by the British, UK The United Kingdom of Great Britain and Northern Ireland[note 7] is a sovereign state located off the northwestern coast of continental Europe. It is an island country, spanning an archipelago including Great Britain, the northeastern part of the island of Ireland, and many small islands. Northern Ireland is the only part of the UK with a land and the United States ^ b. English is the de facto language of American government and the sole language spoken at home by 80% of Americans age five and older. Spanish is the second most commonly spoken language) rent used in a trade Trade is the voluntary exchange of goods, services, or both. Trade is also called commerce or transaction. A mechanism that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Later one side of the barter were the metals, precious metals , bill, paper money. Modern traders instead or business is tax deductible A tax deduction or a tax-deductible expense affects a taxpayer's income tax. A tax deduction represents an expense incurred by a taxpayer. They are variable amounts that you can subtract, or deduct, from your gross income.It is subtracted from gross income when the taxpayer computes his or her income taxes. As a result, the tax deduction will, whereas rent on a dwelling Dwelling, as well as being a term for a house, or for living somewhere, or for lingering somewhere, is a philosophical concept which was developed by Martin Heidegger is not tax deductible in most jurisdictions.
• Financial inadequacy, such as renting a house A house is a home, shelter, building or structure that is a dwelling or place for habitation by human beings. The term includes many kinds of dwellings ranging from rudimentary huts of nomadic tribes to free standing individual structures. In some contexts, "house" may mean the same as dwelling, residence, home, abode, lodging, 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 Depreciation is a term used in accounting, economics and finance to spread the cost of an asset over the span of several years and transaction costs In economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange . For example, most people, when buying or selling a stock, must pay a commission to their broker; that commission is a transaction cost of doing the stock deal. Or consider buying a banana from a store; to purchase the banana, your 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 tool is a device that can be used to produce or achieve something, but that is not consumed in the process. Colloquially a tool can also be a procedure or process used for a specific purpose. Tools that are used in particular fields or activities may have different assignations such as Instrument, Utensil, Implement, Machine, Apparatus, a truck A lorry or truck (American English) is a motor vehicle designed to transport cargo. Trucks/lorries vary greatly in size, power and configuration, with the smallest being mechanically similar to an automobile. Commercial trucks/lorries can be very large and powerful, and may be configured to mount specialized equipment, such as in the case of fire or a skip A rubbish skip is a large open-topped container designed for loading onto a special type of lorry. Differing from dumpster, instead of being emptied into a waste vehicle onsite, a skip bin is replaced by an empty bin (or no bin at all) and then tipped at a tip or dumpsite.
• 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 Renting 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 from lawnmowers and washing machines to handbags and jewellry: 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 renter may want to leave the burden of upkeep Maintenance, repair, and operations involves fixing any sort of mechanical or electrical device should it become out of order or broken (known as repair, unscheduled or casualty maintenance). It also includes performing routine actions which keep the device in working order (known as scheduled maintenance) or prevent trouble from arising ( of the property (mowing the lawn, shoveling snow, etc.) to the owner or his agents.
• There is no need to worry about lifespan The word "longevity" is sometimes used as a synonym for "life expectancy" in demography or to connote "long life", especially when it concerns someone or something lasting longer than expected and maintenance Maintenance, repair, and operations involves fixing any sort of mechanical or electrical device should it become out of order or broken (known as repair, unscheduled or casualty maintenance). It also includes performing routine actions which keep the device in working order (known as scheduled maintenance) or prevent trouble from arising (.
• Renting keeps off-balance-sheet Off balance sheet usually means an asset or debt or financing activity not on the company's balance sheet the debt that would burden the balance sheet In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, a business partnership or a company. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a "snapshot of of a company in case the property would have been bought.
• Renting may also have positive benefits for the environment. Experts believe we may now be witnessing the beginnings of a mega shift towards the Rental Society in which the unsustainable growth in production and consumption will be reversed. The ‘disposable mentality’ will give way to efficient use and this will serve to reduce the adverse impacts on the environment.^[2]

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.^[3] According to a poll by YouGov YouGov is an international internet-based market research firm launched in the UK in May 2000 by Stephan Shakespeare, now Chief Executive Officer, and Nadhim Zahawi. In 2005 the company opened an office in the Middle East, YouGovSiraj, and in 2007 it further expanded by acquiring market research firms in the USA, Germany and Scandinavia, which are, 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.^[4]

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.^[5] Environmental concerns, fast depreciation of goods, and a more transient workforce also mean that consumers are increasingly searching for rentals online.^[3]

Rental agreements

There is typically an implied, explicit, or written rental agreement A rental agreement is a contract, usually written, between the owner of a property and a renter who desires to have temporary possession of the property. As a minimum, the agreement identifies the parties, the property, the term of the rental, and the amount of rent for the term. The owner of the property may be referred to as the lessor and the or contract In law, a contract is an agreement between two or more parties which, if it contains the elements of a valid legal agreement, is enforceable by law or by binding arbitration. A legally enforceable contract is an exchange of promises with specific legal remedies for breach. These can include compensatory remedy, whereby the defaulting party is involved to specify the terms of the rental, which are regulated and managed under contract law In law, a contract is an agreement between two or more parties which, if it contains the elements of a valid legal agreement, is enforceable by law or by binding arbitration. A legally enforceable contract is an exchange of promises with specific legal remedies for breach. These can include compensatory remedy, whereby the defaulting party is. Examples include:

• Renting real estate Real estate is a legal term that encompasses land along with improvements to the land, such as buildings, fences, wells and other site improvements that are fixed in location—immovable. Real estate law is the body of regulations and legal codes which pertain to such matters under a particular jurisdiction and include things such as commercial (real property) for the purpose of housing tenure Housing tenure refers to the financial arrangements under which someone has the right to live in a house or apartment. The most frequent forms are tenancy, in which rent is paid to a landlord, and owner occupancy. Mixed forms of tenure are also possible (where the lessee rents a residence to live in), parking Parking is the act of stopping a vehicle and leaving it unoccupied for more than a brief time. Parking on one or both sides of a road is commonly permitted, though often with restrictions. Parking facilities are constructed in combination with most buildings, to facilitate the coming and going of the buildings' users 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 A leasehold estate is an ownership interest in land in which a lessee or a tenant holds real property by some form of title from a lessor or landlord, paying rent to the owner of the property, the lessor, often called a landlord Landlord is the owner of a house, apartment, condominium, or real estate which is rented or leased to an individual or business, who is called a tenant . When a juristic person is in this position, the term landlord is used. Other terms include lessor and owner. The term landlady may be used in some jurisdictions for female owners, but landlord (or landlady). The real estate rented may be all or part of almost any real estate, such as an apartment An apartment or flat (in British English and often associated with or miscontrued as social housing) is a self-contained housing unit (a type of residential real estate) that occupies only part of a building. Such a building may be called an apartment building, especially if it consists of many apartments for rent. Apartments may be owned by an, house A house is a home, shelter, building or structure that is a dwelling or place for habitation by human beings. The term includes many kinds of dwellings ranging from rudimentary huts of nomadic tribes to free standing individual structures. In some contexts, "house" may mean the same as dwelling, residence, home, abode, lodging,, building Buildings come in a wide amount of shapes and functions, and have been adapted throughout history for a wide number of factors, from building materials available, to weather conditions, to land prices, ground conditions, specific uses and aesthetic reasons, 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 Real estate is a legal term that encompasses land along with improvements to the land, such as buildings, fences, wells and other site improvements that are fixed in location—immovable. Real estate law is the body of regulations and legal codes which pertain to such matters under a particular jurisdiction and include things such as commercial.

• The rental agreement for real estate is often called a lease A lease is a contract calling for the lessee to pay the lessor (owner) for use of an asset. A rental agreement is a lease in which the asset is tangible property. Leases for intangible property could include use of a computer program (similar to a license, but with different provisions), or use of a radio frequency (such as a contract with a cell-, and usually involves specific property rights in real property Real property and personal property are the main classifications of property in the common law. Real property refers to land and the improvements made by human efforts—buildings, machinery, the acquisition of various property rights, and the like. Real property is also termed realty, real estate, and immovable property, as opposed to chattels Personal property, roughly speaking, is private property that is moveable, as opposed to real property or real estate. In the common law systems personal property may also be called chattels or personalty. In the civil law systems personal property is often called movable property or movables - any property that can be moved from one location to.
• 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 In law, a contract is an agreement between two or more parties which, if it contains the elements of a valid legal agreement, is enforceable by law or by binding arbitration. A legally enforceable contract is an exchange of promises with specific legal remedies for breach. These can include compensatory remedy, whereby the defaulting party is, 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:

• The renting of motion pictures Film encompasses individual motion pictures, the field of film as an art form, and the motion picture industry. Films are produced by recording photographic images with cameras, or by creating images using animation techniques or visual effects on VHS The Video Home System is a consumer-level video standard developed by Japanese company, JVC, and launched in 1976 or DVD DVD, also known as Digital Video Disc or Digital Versatile Disc, is an optical disc storage media format, and was invented and developed by Philips, Sony, Toshiba, and Time Warner in 1995. Its main uses are video and data storage. DVDs are of the same dimensions as compact discs , but are capable of storing more than six times as much data, of audio CDs A Compact Disc is an optical disc used to store digital data. It was originally developed to store sound recordings exclusively, but later it also allowed the preservation of other types of data. Audio CDs have been commercially available since October 1982. In 2010, they remain the standard physical storage medium for audio, of computer programs A computer program is a sequence of instructions written to perform a specified task for a computer. A computer requires programs to function, typically executing the program's instructions in a central processor. The program has an executable form that the computer can use directly to execute the instructions. The same program in its human- on CD-ROM CD-ROM is a pre-pressed compact disc that contains data accessible to, but not writable by, a computer for data storage and music playback, the 1985 “Yellow Book” standard developed by Sony and Philips adapted the format to hold any form of binary data.
• Renting transport Transport or transportation is the movement of people and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline, and space. The field can be divided into infrastructure, vehicles, and operations equipment, such as an automobile An automobile, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor. Most definitions of the term specify that automobiles are designed to run primarily on roads, to have seating for one to eight people, to typically have four wheels, and to be constructed principally for the, boat A boat is a watercraft of modest size designed to float or plane, to provide passage across water. Usually this water will be inland or in protected coastal areas. However, boats such as the whaleboat were designed to be operated from a ship in an offshore environment. In naval terms, a boat is something small enough to be carried aboard another, or a bicycle A bicycle, also known as a bike, pushbike or cycle, is a pedal-driven, human-powered, single-track vehicle, having two wheels attached to a frame, one behind the other. A person who rides a bicycle is called a cyclist or a bicyclist.
• Renting somewhat specialized tools A tool is a device that can be used to produce or achieve something, but that is not consumed in the process. Colloquially a tool can also be a procedure or process used for a specific purpose. Tools that are used in particular fields or activities may have different assignations such as Instrument, Utensil, Implement, Machine, Apparatus, such as a chainsaw A chainsaw is a portable mechanical saw, powered by electricity, compressed air, hydraulic power, or most commonly a two-stroke engine. It is used in activities such as tree felling, limbing, bucking, pruning, by tree surgeons to fell trees and remove branches and foliage, to fell snags and assist in cutting firebreaks in wildland fire suppression,, laptop, IT equipment or something more substantial, such as a forklift.
• Very specialized rental of equipment may include items as large as cranes, oil rigs and submarines.
• Renting a deckchair or beach chair and umbrella.
• Furniture
• Designer handbags, jewelry, sunglasses and watches.

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 can not 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.

Rent to own

Some merchants have rent-to-own (also called lease-purchase or hire purchase) programs, usually for expensive items such as houses or appliances. Houses however are more commonly sold using a mortgage rather than hire purchase, the difference being who the house legally belongs to during the payment period: the seller in the former case, and the buyer in the latter.

See also

• Anti-Rent War
• Bid rent theory
• Leasing
• Online DVD rental
• Rental agreement
• Rental car
• Rental shop
• Rent guarantee insurance
• Rent strike
• Rent to own
• The Landlord's Game
• Vacation rental
• Wardrobing

References

1. ^ "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.
2. ^ "Why buy it when you can rent it?", The Observer, 2004-06-27. Retrieved on 2009-09-09.
3. ^ ^{a b} Schenker, Jennifer. "Tough Times? Rent, Don't Buy, with Erento", BusinessWeek, 2008-08-22. Retrieved on 2009-10-01.
4. ^ Pollok, Murray. News Highlights, International Rental News, 2009-04-01. Retrieved on 2009-09-01.
5. ^ Moshiri, Maryam. "Is renting the new buying?", BBC Breakfast News, 2009-04-27. Retrieved on 2009-05-01.

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